ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENGH - CA2929491041 - Common Stock
19.42 CAD
-0.11 (-0.56%)
ENGH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Software industry. ENGH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ENGH is valued quite cheap, but it does not seem to be growing. With these ratings, ENGH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year ENGH was profitable.
- In the past year ENGH had a positive cash flow from operations.
- Each year in the past 5 years ENGH has been profitable.
- ENGH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ENGH has a Return On Assets of 8.60%. This is amongst the best in the industry. ENGH outperforms 85.07% of its industry peers.
- ENGH's Return On Equity of 12.09% is fine compared to the rest of the industry. ENGH outperforms 77.61% of its industry peers.
- ENGH has a Return On Invested Capital of 11.33%. This is amongst the best in the industry. ENGH outperforms 88.06% of its industry peers.
- ENGH had an Average Return On Invested Capital over the past 3 years of 11.75%. This is in line with the industry average of 12.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 12.09% | ||
| ROIC | 11.33% |
ROA(3y)9.19%
ROA(5y)10.95%
ROE(3y)12.92%
ROE(5y)15.55%
ROIC(3y)11.75%
ROIC(5y)13.5%
1.3 Margins
- ENGH's Profit Margin of 14.77% is amongst the best of the industry. ENGH outperforms 85.07% of its industry peers.
- ENGH's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 18.03%, ENGH belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
- ENGH's Operating Margin has declined in the last couple of years.
- ENGH has a better Gross Margin (63.60%) than 64.18% of its industry peers.
- In the last couple of years the Gross Margin of ENGH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.03% | ||
| PM (TTM) | 14.77% | ||
| GM | 63.6% |
OM growth 3Y-6.37%
OM growth 5Y-5.32%
PM growth 3Y-12.58%
PM growth 5Y-5.48%
GM growth 3Y-2.95%
GM growth 5Y-2.23%
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.
- The number of shares outstanding for ENGH has been reduced compared to 1 year ago.
- ENGH has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for ENGH has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that ENGH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ENGH (4.47) is better than 71.64% of its industry peers.
- ENGH has a debt to FCF ratio of 0.11. This is a very positive value and a sign of high solvency as it would only need 0.11 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.11, ENGH belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that ENGH is not too dependend on debt financing.
- The Debt to Equity ratio of ENGH (0.01) is better than 76.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.13
WACC10%
2.3 Liquidity
- ENGH has a Current Ratio of 1.71. This is a normal value and indicates that ENGH is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.71, ENGH is doing good in the industry, outperforming 61.19% of the companies in the same industry.
- A Quick Ratio of 1.71 indicates that ENGH should not have too much problems paying its short term obligations.
- The Quick ratio of ENGH (1.71) is better than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
- The earnings per share for ENGH have decreased by -9.52% in the last year.
- The Earnings Per Share has been decreasing by -5.45% on average over the past years.
- Looking at the last year, ENGH shows a decrease in Revenue. The Revenue has decreased by -0.72% in the last year.
- Measured over the past years, ENGH shows a decrease in Revenue. The Revenue has been decreasing by -0.20% on average per year.
EPS 1Y (TTM)-9.52%
EPS 3Y-8.04%
EPS 5Y-5.45%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y5.27%
Revenue growth 5Y-0.2%
Sales Q2Q%-0.97%
3.2 Future
- The Earnings Per Share is expected to grow by 10.66% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y13.5%
EPS Next 2Y10.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.83%
Revenue Next 2Y3.48%
Revenue Next 3YN/A
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.60, the valuation of ENGH can be described as correct.
- Based on the Price/Earnings ratio, ENGH is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ENGH to the average of the S&P500 Index (27.47), we can say ENGH is valued slightly cheaper.
- ENGH is valuated correctly with a Price/Forward Earnings ratio of 12.86.
- ENGH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 80.60% of the companies in the same industry.
- ENGH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaper than 82.09% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 89.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.31 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ENGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y10.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ENGH has a Yearly Dividend Yield of 5.81%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.20, ENGH pays a better dividend. On top of this ENGH pays more dividend than 100.00% of the companies listed in the same industry.
- ENGH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
5.2 History
- On average, the dividend of ENGH grows each year by 17.99%, which is quite nice.
- ENGH has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of ENGH decreased in the last 3 years.
Dividend Growth(5Y)17.99%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 83.91% of the earnings are spent on dividend by ENGH. This is not a sustainable payout ratio.
- ENGH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP83.91%
EPS Next 2Y10.66%
EPS Next 3YN/A
TSX:ENGH (1/16/2026, 7:00:00 PM)
19.42
-0.11 (-0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-15 2025-12-15/amc
Earnings (Next)03-09 2026-03-09
Inst Owners40.53%
Inst Owner ChangeN/A
Ins Owners22.16%
Ins Owner ChangeN/A
Market Cap1.06B
Revenue(TTM)498.88M
Net Income(TTM)73.67M
Analysts46.67
Price Target22.44 (15.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend1.12
Dividend Growth(5Y)17.99%
DP83.91%
Div Incr Years2
Div Non Decr Years2
Ex-Date02-13 2026-02-13 (0.3)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.17%
Min EPS beat(2)-17.11%
Max EPS beat(2)2.77%
EPS beat(4)2
Avg EPS beat(4)-11.09%
Min EPS beat(4)-36.97%
Max EPS beat(4)6.95%
EPS beat(8)3
Avg EPS beat(8)-7.49%
EPS beat(12)5
Avg EPS beat(12)-8.07%
EPS beat(16)6
Avg EPS beat(16)-2.65%
Revenue beat(2)0
Avg Revenue beat(2)-4.05%
Min Revenue beat(2)-4.95%
Max Revenue beat(2)-3.16%
Revenue beat(4)0
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-5.58%
Max Revenue beat(4)-3.16%
Revenue beat(8)1
Avg Revenue beat(8)-3.34%
Revenue beat(12)1
Avg Revenue beat(12)-3.57%
Revenue beat(16)2
Avg Revenue beat(16)-3.8%
PT rev (1m)-5.38%
PT rev (3m)-7.04%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)3.32%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 12.86 | ||
| P/S | 2.13 | ||
| P/FCF | 10.31 | ||
| P/OCF | 10.16 | ||
| P/B | 1.74 | ||
| P/tB | 5.97 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)1.33
EY6.85%
EPS(NY)1.51
Fwd EY7.77%
FCF(TTM)1.88
FCFY9.7%
OCF(TTM)1.91
OCFY9.84%
SpS9.11
BVpS11.13
TBVpS3.25
PEG (NY)1.08
PEG (5Y)N/A
Graham Number18.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.6% | ||
| ROE | 12.09% | ||
| ROCE | 14.09% | ||
| ROIC | 11.33% | ||
| ROICexc | 19.59% | ||
| ROICexgc | N/A | ||
| OM | 18.03% | ||
| PM (TTM) | 14.77% | ||
| GM | 63.6% | ||
| FCFM | 20.68% |
ROA(3y)9.19%
ROA(5y)10.95%
ROE(3y)12.92%
ROE(5y)15.55%
ROIC(3y)11.75%
ROIC(5y)13.5%
ROICexc(3y)20.44%
ROICexc(5y)23.15%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.62%
ROCE(5y)16.79%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-6.68%
ROICexc growth 5Y-9.03%
OM growth 3Y-6.37%
OM growth 5Y-5.32%
PM growth 3Y-12.58%
PM growth 5Y-5.48%
GM growth 3Y-2.95%
GM growth 5Y-2.23%
F-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 3.93% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.01% | ||
| Profit Quality | 140.03% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 4.47 |
F-Score4
WACC10%
ROIC/WACC1.13
Cap/Depr(3y)3.38%
Cap/Depr(5y)3.64%
Cap/Sales(3y)0.31%
Cap/Sales(5y)0.37%
Profit Quality(3y)152.7%
Profit Quality(5y)138.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.52%
EPS 3Y-8.04%
EPS 5Y-5.45%
EPS Q2Q%-7.32%
EPS Next Y13.5%
EPS Next 2Y10.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y5.27%
Revenue growth 5Y-0.2%
Sales Q2Q%-0.97%
Revenue Next Year1.83%
Revenue Next 2Y3.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.28%
EBIT growth 3Y-1.43%
EBIT growth 5Y-5.51%
EBIT Next Year11.18%
EBIT Next 3Y8.33%
EBIT Next 5YN/A
FCF growth 1Y-20.71%
FCF growth 3Y0.29%
FCF growth 5Y-9.03%
OCF growth 1Y-20.77%
OCF growth 3Y0.47%
OCF growth 5Y-9.05%
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.
What is the valuation status for ENGH stock?
ChartMill assigns a valuation rating of 7 / 10 to ENGHOUSE SYSTEMS LTD (ENGH.CA). This can be considered as Undervalued.
What is the profitability of ENGH stock?
ENGHOUSE SYSTEMS LTD (ENGH.CA) has a profitability rating of 7 / 10.
How financially healthy is ENGHOUSE SYSTEMS LTD?
The financial health rating of ENGHOUSE SYSTEMS LTD (ENGH.CA) is 8 / 10.
How sustainable is the dividend of ENGHOUSE SYSTEMS LTD (ENGH.CA) stock?
The dividend rating of ENGHOUSE SYSTEMS LTD (ENGH.CA) is 6 / 10 and the dividend payout ratio is 83.91%.