ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
Canada - TSX:ENGH - CA2929491041 - Common Stock
20.81 CAD
+0.33 (+1.61%)
Overall ENGH gets a fundamental rating of 6 out of 10. We evaluated ENGH against 63 industry peers in the Software industry. ENGH gets an excellent profitability rating and is at the same time showing great financial health properties. ENGH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ENGH was profitable.
ENGH had a positive operating cash flow in the past year.
Each year in the past 5 years ENGH has been profitable.
In the past 5 years ENGH always reported a positive cash flow from operatings.
1.2 Ratios
ENGH has a Return On Assets of 8.86%. This is amongst the best in the industry. ENGH outperforms 87.30% of its industry peers.
ENGH has a better Return On Equity (12.47%) than 84.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.55%, ENGH belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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.
ENGH's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.86%, ENGH belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
ENGH's Operating Margin has declined in the last couple of years.
The Gross Margin of ENGH (63.84%) is better than 68.25% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENGH is 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
An Altman-Z score of 4.68 indicates that ENGH is not in any danger for bankruptcy at the moment.
ENGH's Altman-Z score of 4.68 is fine compared to the rest of the industry. ENGH outperforms 69.84% 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.
With an excellent Debt to FCF ratio value of 0.09, ENGH belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that ENGH is not too dependend on debt financing.
ENGH has a better Debt to Equity ratio (0.01) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.68 |
ROIC/WACC1.14
WACC10.16%
2.3 Liquidity
ENGH has a Current Ratio of 1.72. 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 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.
Looking at the Quick ratio, with a value of 1.72, ENGH is in the better half of 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
The earnings per share for ENGH have decreased by -9.93% in the last year.
The Earnings Per Share has been growing slightly by 2.65% on average over the past years.
The Revenue has been growing slightly by 0.03% in the past 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 15.30 indicates a correct valuation of ENGH.
Compared to the rest of the industry, the Price/Earnings ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 92.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. ENGH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.14, the valuation of ENGH can be described as correct.
Based on the Price/Forward Earnings ratio, ENGH is valued cheaper than 87.30% of the companies in the same industry.
ENGH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaper than 88.89% of the companies in the same industry.
90.48% of the companies in the same industry are more expensive than ENGH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
The decent profitability rating of ENGH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.78
EPS Next 2Y0.07%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 5.86%, which is a nice return.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 1.57. ENGH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
5.2 History
On average, the dividend of ENGH grows each year by 19.11%, which is quite nice.
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
ENGH pays out 79.39% of its income as dividend. This is not a sustainable payout ratio.
ENGH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.39%
EPS Next 2Y0.07%
EPS Next 3Y3.44%
TSX:ENGH (10/31/2025, 7:00:00 PM)
20.81
+0.33 (+1.61%)
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 Cap1.15B
Revenue(TTM)500.10M
Net Income(TTM)75.18M
Analysts45.45
Price Target23.72 (13.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
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)-1.76%
PT rev (3m)-7.62%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.38%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.14 | ||
| P/S | 2.29 | ||
| P/FCF | 9.98 | ||
| P/OCF | 9.83 | ||
| P/B | 1.9 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)1.36
EY6.54%
EPS(NY)1.47
Fwd EY7.07%
FCF(TTM)2.09
FCFY10.02%
OCF(TTM)2.12
OCFY10.17%
SpS9.08
BVpS10.94
TBVpS3.1
PEG (NY)N/A
PEG (5Y)5.78
Graham Number18.3
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 4.68 |
F-Score6
WACC10.16%
ROIC/WACC1.14
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%
ENGHOUSE SYSTEMS LTD / ENGH.CA FAQ
Can you provide the ChartMill fundamental rating for ENGHOUSE SYSTEMS LTD?
ChartMill assigns a fundamental rating of 6 / 10 to ENGH.CA.
Can you provide the valuation status for ENGHOUSE SYSTEMS LTD?
ChartMill assigns a valuation rating of 6 / 10 to ENGHOUSE SYSTEMS LTD (ENGH.CA). This can be considered as Fairly Valued.
What is the profitability of ENGH stock?
ENGHOUSE SYSTEMS LTD (ENGH.CA) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for ENGH stock?
The Earnings per Share (EPS) of ENGHOUSE SYSTEMS LTD (ENGH.CA) is expected to decline by -8.64% in the next year.
Can you provide the dividend sustainability for ENGH stock?
The dividend rating of ENGHOUSE SYSTEMS LTD (ENGH.CA) is 6 / 10 and the dividend payout ratio is 79.39%.