ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
TSX:ENGH - Toronto Stock Exchange - CA2929491041 - Common Stock - Currency: CAD
Overall ENGH gets a fundamental rating of 6 out of 10. We evaluated ENGH against 63 industry peers in the Software industry. Both the health and profitability get an excellent rating, making ENGH a very profitable company, without any liquidiy or solvency issues. ENGH has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
ENGH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENGH's Return On Assets of 9.05% is amongst the best of the industry. ENGH outperforms 82.54% of its industry peers.
Looking at the Return On Equity, with a value of 13.07%, ENGH is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.88%, ENGH belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ENGH is in line with the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 13.07% | ||
| ROIC | 11.88% |
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
ENGH has a Profit Margin of 15.56%. This is amongst the best in the industry. ENGH outperforms 88.89% of its industry peers.
ENGH's Profit Margin has declined in the last couple of years.
ENGH's Operating Margin of 18.21% is amongst the best of the industry. ENGH outperforms 88.89% of its industry peers.
ENGH's Operating Margin has declined in the last couple of years.
ENGH's Gross Margin of 64.11% is fine compared to the rest of the industry. ENGH outperforms 69.84% of its industry peers.
In the last couple of years the Gross Margin of ENGH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.21% | ||
| PM (TTM) | 15.56% | ||
| GM | 64.11% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENGH is still creating some value.
Compared to 1 year ago, ENGH has more shares outstanding
The number of shares outstanding for ENGH has been increased compared to 5 years ago.
Compared to 1 year ago, ENGH has an improved debt to assets ratio.
2.2 Solvency
ENGH has an Altman-Z score of 4.62. This indicates that ENGH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.62, ENGH is doing good in the industry, outperforming 76.19% of the companies in the same industry.
ENGH has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
The Debt to FCF ratio of ENGH (0.08) is better than 92.06% of its industry peers.
ENGH has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
ENGH has a better Debt to Equity ratio (0.01) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.13
WACC10.51%
2.3 Liquidity
ENGH has a Current Ratio of 1.63. This is a normal value and indicates that ENGH is financially healthy and should not expect problems in meeting its short term obligations.
ENGH has a Current ratio (1.63) which is comparable to the rest of the industry.
A Quick Ratio of 1.63 indicates that ENGH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.63, ENGH is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The earnings per share for ENGH have decreased by -2.74% in the last year.
ENGH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.65% yearly.
The Revenue has been growing slightly by 5.12% in the past year.
The Revenue has been growing slightly by 5.42% on average over the past years.
EPS 1Y (TTM)-2.74%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%-0.79%
3.2 Future
ENGH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.66% yearly.
ENGH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
EPS Next Y5.47%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y2.09%
Revenue Next 3Y3.47%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.74, ENGH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 87.30% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ENGH to the average of the S&P500 Index (26.82), we can say ENGH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.47, the valuation of ENGH can be described as correct.
ENGH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 84.13% of the companies in the same industry.
ENGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.24, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
ENGH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ENGH is cheaper than 85.71% of the companies in the same industry.
ENGH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ENGH is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ENGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)5.95
EPS Next 2Y6.24%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, ENGH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.44, 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 2.36, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
5.2 History
The dividend of ENGH is nicely growing with an annual growth rate of 19.11%!
ENGH has been paying a dividend for at least 10 years, so it has 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
ENGH pays out 73.21% of its income as dividend. 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.
DP73.21%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
TSX:ENGH (8/18/2025, 7:00:00 PM)
22.35
+0.18 (+0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners37.67%
Inst Owner ChangeN/A
Ins Owners22%
Ins Owner ChangeN/A
Market Cap1.23B
Analysts45.45
Price Target25.67 (14.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend0.96
Dividend Growth(5Y)19.11%
DP73.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.01%
Min EPS beat(2)-36.97%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-7.57%
Min EPS beat(4)-36.97%
Max EPS beat(4)6.95%
EPS beat(8)4
Avg EPS beat(8)-4.53%
EPS beat(12)5
Avg EPS beat(12)-0.66%
EPS beat(16)6
Avg EPS beat(16)-0.81%
Revenue beat(2)0
Avg Revenue beat(2)-4.57%
Min Revenue beat(2)-5.58%
Max Revenue beat(2)-3.57%
Revenue beat(4)0
Avg Revenue beat(4)-4.5%
Min Revenue beat(4)-7.49%
Max Revenue beat(4)-1.35%
Revenue beat(8)1
Avg Revenue beat(8)-3.72%
Revenue beat(12)2
Avg Revenue beat(12)-3.21%
Revenue beat(16)2
Avg Revenue beat(16)-4.25%
PT rev (1m)0%
PT rev (3m)-11.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-1.99%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.47 | ||
| P/S | 2.44 | ||
| P/FCF | 9.64 | ||
| P/OCF | 9.49 | ||
| P/B | 2.05 | ||
| P/tB | 7.57 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)1.42
EY6.35%
EPS(NY)1.66
Fwd EY7.42%
FCF(TTM)2.32
FCFY10.38%
OCF(TTM)2.36
OCFY10.54%
SpS9.16
BVpS10.91
TBVpS2.95
PEG (NY)2.88
PEG (5Y)5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 13.07% | ||
| ROCE | 14.56% | ||
| ROIC | 11.88% | ||
| ROICexc | 20.39% | ||
| ROICexgc | N/A | ||
| OM | 18.21% | ||
| PM (TTM) | 15.56% | ||
| GM | 64.11% | ||
| FCFM | 25.31% |
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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 4.66% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.15% | ||
| Profit Quality | 162.66% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.62 |
F-Score4
WACC10.51%
ROIC/WACC1.13
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)-2.74%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-33.33%
EPS Next Y5.47%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
EPS Next 5YN/A
Revenue 1Y (TTM)5.12%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%-0.79%
Revenue Next Year-1.01%
Revenue Next 2Y2.09%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y1.19%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year18.46%
EBIT Next 3Y11.66%
EBIT Next 5YN/A
FCF growth 1Y34.66%
FCF growth 3Y4.16%
FCF growth 5Y10.43%
OCF growth 1Y35.73%
OCF growth 3Y3.69%
OCF growth 5Y10.16%