ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENGH - CA2929491041 - Common Stock
20.48 CAD
+0.08 (+0.39%)
Overall ENGH gets a fundamental rating of 6 out of 10. We evaluated ENGH against 65 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
ENGH had positive earnings in the past year.
ENGH had a positive operating cash flow in the past year.
ENGH had positive earnings in 4 of the past 5 years.
Of the past 5 years ENGH 4 years had a positive operating cash flow.
1.2 Ratios
ENGH has a better Return On Assets (8.86%) than 89.23% of its industry peers.
With an excellent Return On Equity value of 12.47%, ENGH belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
ENGH has a better Return On Invested Capital (11.55%) than 87.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ENGH is in line with the industry average of 11.86%.
| 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
ENGH has a better Profit Margin (15.03%) than 90.77% of its industry peers.
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 87.69% of the companies in the same industry.
In the last couple of years the Operating Margin of ENGH has declined.
Looking at the Gross Margin, with a value of 63.84%, ENGH is in the better half of the industry, outperforming 67.69% 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.
There is no outstanding debt for ENGH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.62 indicates that ENGH is not in any danger for bankruptcy at the moment.
ENGH has a Altman-Z score of 4.62. This is in the better half of the industry: ENGH outperforms 73.85% of its industry peers.
ENGH has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
The Debt to FCF ratio of ENGH (0.09) is better than 92.31% 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's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. ENGH outperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.15
WACC10.02%
2.3 Liquidity
A Current Ratio of 1.72 indicates that ENGH should not have too much problems paying its short term obligations.
The Current ratio of ENGH (1.72) is better than 61.54% of its industry peers.
A Quick Ratio of 1.72 indicates that ENGH should not have too much problems paying its short term obligations.
ENGH's Quick ratio of 1.72 is fine compared to the rest of the industry. ENGH outperforms 61.54% of its industry peers.
| 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 -9.52% in the last year.
The Earnings Per Share has been decreasing by -5.45% on average over the past years.
EPS 1Y (TTM)-9.52%
EPS 3Y-8.04%
EPS 5Y-5.45%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.97%
3.2 Future
Based on estimates for the next years, ENGH will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
ENGH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y9.86%
EPS Next 2Y10.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y7.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.40, which indicates a correct valuation of ENGH.
ENGH's Price/Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 90.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, ENGH is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.02, which indicates a correct valuation of ENGH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 81.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. ENGH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.76 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
ENGH's 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)1.56
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.74%, ENGH is a good candidate for dividend investing.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 0.23. ENGH pays more dividend than 100.00% of the companies in the same industry.
ENGH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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.
The dividend of ENGH decreased 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 2Y10.6%
EPS Next 3YN/A
TSX:ENGH (12/24/2025, 7:00:00 PM)
20.48
+0.08 (+0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner ChangeN/A
Ins Owners22.16%
Ins Owner ChangeN/A
Market Cap1.12B
Revenue(TTM)N/A
Net Income(TTM)75.18M
Analysts46.67
Price Target23.72 (15.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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)0%
PT rev (3m)-1.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.4 | ||
| Fwd PE | 14.02 | ||
| P/S | 2.24 | ||
| P/FCF | 9.76 | ||
| P/OCF | 9.62 | ||
| P/B | 1.86 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)1.33
EY6.49%
EPS(NY)1.46
Fwd EY7.13%
FCF(TTM)2.1
FCFY10.25%
OCF(TTM)2.13
OCFY10.4%
SpS9.13
BVpS11.01
TBVpS3.12
PEG (NY)1.56
PEG (5Y)N/A
Graham Number18.15
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 | 4.62 |
F-Score6
WACC10.02%
ROIC/WACC1.15
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)-9.52%
EPS 3Y-8.04%
EPS 5Y-5.45%
EPS Q2Q%-7.32%
EPS Next Y9.86%
EPS Next 2Y10.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.97%
Revenue Next Year2.66%
Revenue Next 2Y7.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.26%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year7.33%
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 grow by 9.86% 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%.