ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
Canada - TSX:ENGH - CA2929491041 - Common Stock
21.13 CAD
+0.04 (+0.19%)
Overall ENGH gets a fundamental rating of 6 out of 10. We evaluated ENGH against 63 industry peers in the Software industry. ENGH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ENGH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ENGH had positive earnings in the past year.
In the past year ENGH had a positive cash flow from operations.
In the past 5 years ENGH has always been profitable.
Each year in the past 5 years ENGH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ENGH (8.86%) is better than 85.71% of its industry peers.
With an excellent Return On Equity value of 12.47%, ENGH belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
The Return On Invested Capital of ENGH (11.55%) is better than 87.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENGH is in line with the industry average of 12.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 12.47% | ||
| ROIC | 11.55% |
ROA(3y)10.79%
ROA(5y)11.81%
ROE(3y)15.09%
ROE(5y)17.11%
ROIC(3y)12.81%
ROIC(5y)14.89%
1.3 Margins
With an excellent Profit Margin value of 15.03%, ENGH belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of ENGH has declined.
ENGH has a Operating Margin of 17.86%. This is amongst the best in the industry. ENGH outperforms 87.30% of its industry peers.
ENGH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 63.84%, ENGH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ENGH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.86% | ||
| PM (TTM) | 15.03% | ||
| GM | 63.84% |
OM growth 3Y-8.1%
OM growth 5Y-2.2%
PM growth 3Y-6.6%
PM growth 5Y-2.48%
GM growth 3Y-3.44%
GM growth 5Y-1.23%
2. Health
2.1 Basic Checks
ENGH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ENGH has been increased compared to 1 year ago.
The number of shares outstanding for ENGH has been increased compared to 5 years ago.
The debt/assets ratio for ENGH has been reduced compared to a year ago.
2.2 Solvency
ENGH has an Altman-Z score of 4.73. This indicates that ENGH is financially healthy and has little risk of bankruptcy at the moment.
ENGH's Altman-Z score of 4.73 is fine compared to the rest of the industry. ENGH outperforms 73.02% of its industry peers.
The Debt to FCF ratio of ENGH is 0.09, which is an excellent value as it means it would take ENGH, only 0.09 years of fcf income to pay off all of its debts.
ENGH has a Debt to FCF ratio of 0.09. This is amongst the best in the industry. ENGH outperforms 92.06% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that ENGH is not too dependend on debt financing.
The Debt to Equity ratio of ENGH (0.01) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.1
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.72 indicates that ENGH should not have too much problems paying its short term obligations.
ENGH has a Current ratio of 1.72. This is in the better half of the industry: ENGH outperforms 61.90% of its industry peers.
A Quick Ratio of 1.72 indicates that ENGH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.72, ENGH is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
ENGH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.93%.
Measured over the past 5 years, ENGH shows a small growth in Earnings Per Share. The EPS has been growing by 2.65% on average per year.
Looking at the last year, ENGH shows a small growth in Revenue. The Revenue has grown by 0.03% in the last year.
The Revenue has been growing slightly by 5.42% on average over the past years.
EPS 1Y (TTM)-9.93%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-16.22%
Revenue 1Y (TTM)0.03%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%-3.77%
3.2 Future
Based on estimates for the next years, ENGH will show a small growth in Earnings Per Share. The EPS will grow by 3.44% on average per year.
ENGH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.15% yearly.
EPS Next Y-8.64%
EPS Next 2Y0.07%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y0.3%
Revenue Next 3Y4.15%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ENGH is valuated correctly with a Price/Earnings ratio of 15.54.
ENGH's Price/Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 88.89% of the companies in the same industry.
ENGH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
ENGH is valuated correctly with a Price/Forward Earnings ratio of 14.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 85.71% of the companies listed in the same industry.
ENGH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
90.48% of the companies in the same industry are more expensive than ENGH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ENGH is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.13 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
The decent profitability rating of ENGH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.87
EPS Next 2Y0.07%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 5.69%, which is a nice return.
Compared to an average industry Dividend Yield of 1.48, ENGH pays a better dividend. On top of this ENGH pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
5.2 History
The dividend of ENGH is nicely growing with an annual growth rate of 19.11%!
ENGH has paid a dividend for at least 10 years, which is a reliable track record.
ENGH has decreased its dividend in the last 3 years.
Dividend Growth(5Y)19.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
79.39% of the earnings are spent on dividend by ENGH. This is not a sustainable payout ratio.
The dividend of ENGH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP79.39%
EPS Next 2Y0.07%
EPS Next 3Y3.44%
TSX:ENGH (10/3/2025, 7:00:00 PM)
21.13
+0.04 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners38.55%
Inst Owner ChangeN/A
Ins Owners22.02%
Ins Owner ChangeN/A
Market Cap1.16B
Analysts45.45
Price Target24.14 (14.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
Yearly Dividend0.96
Dividend Growth(5Y)19.11%
DP79.39%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.04%
Min EPS beat(2)-36.97%
Max EPS beat(2)-17.11%
EPS beat(4)1
Avg EPS beat(4)-12.27%
Min EPS beat(4)-36.97%
Max EPS beat(4)6.95%
EPS beat(8)3
Avg EPS beat(8)-7.1%
EPS beat(12)5
Avg EPS beat(12)-1.84%
EPS beat(16)6
Avg EPS beat(16)-1.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.26%
Min Revenue beat(2)-5.58%
Max Revenue beat(2)-4.95%
Revenue beat(4)0
Avg Revenue beat(4)-5.4%
Min Revenue beat(4)-7.49%
Max Revenue beat(4)-3.57%
Revenue beat(8)1
Avg Revenue beat(8)-3.69%
Revenue beat(12)2
Avg Revenue beat(12)-3.1%
Revenue beat(16)2
Avg Revenue beat(16)-4.24%
PT rev (1m)-5.96%
PT rev (3m)-5.96%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-4.39%
EPS NY rev (1m)-5.95%
EPS NY rev (3m)-13.38%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 14.35 | ||
| P/S | 2.33 | ||
| P/FCF | 10.13 | ||
| P/OCF | 9.98 | ||
| P/B | 1.93 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)1.36
EY6.44%
EPS(NY)1.47
Fwd EY6.97%
FCF(TTM)2.09
FCFY9.87%
OCF(TTM)2.12
OCFY10.02%
SpS9.08
BVpS10.94
TBVpS3.1
PEG (NY)N/A
PEG (5Y)5.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.86% | ||
| ROE | 12.47% | ||
| ROCE | 14.16% | ||
| ROIC | 11.55% | ||
| ROICexc | 20.28% | ||
| ROICexgc | N/A | ||
| OM | 17.86% | ||
| PM (TTM) | 15.03% | ||
| GM | 63.84% | ||
| FCFM | 22.97% |
ROA(3y)10.79%
ROA(5y)11.81%
ROE(3y)15.09%
ROE(5y)17.11%
ROIC(3y)12.81%
ROIC(5y)14.89%
ROICexc(3y)22.27%
ROICexc(5y)25.9%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.7%
ROCE(5y)18.26%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-10.21%
ROICexc growth 5Y-1.31%
OM growth 3Y-8.1%
OM growth 5Y-2.2%
PM growth 3Y-6.6%
PM growth 5Y-2.48%
GM growth 3Y-3.44%
GM growth 5Y-1.23%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 4.21% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.99% | ||
| Profit Quality | 152.83% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 4.73 |
F-Score6
WACC10.51%
ROIC/WACC1.1
Cap/Depr(3y)2.73%
Cap/Depr(5y)3.72%
Cap/Sales(3y)0.28%
Cap/Sales(5y)0.41%
Profit Quality(3y)142.1%
Profit Quality(5y)143.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.93%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-16.22%
EPS Next Y-8.64%
EPS Next 2Y0.07%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue 1Y (TTM)0.03%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%-3.77%
Revenue Next Year-2%
Revenue Next 2Y0.3%
Revenue Next 3Y4.15%
Revenue Next 5YN/A
EBIT growth 1Y-6.26%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year7.3%
EBIT Next 3Y8.78%
EBIT Next 5YN/A
FCF growth 1Y9.85%
FCF growth 3Y4.16%
FCF growth 5Y10.43%
OCF growth 1Y10.49%
OCF growth 3Y3.69%
OCF growth 5Y10.16%