ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
TSX:ENGH - Toronto Stock Exchange - CA2929491041 - Common Stock - Currency: CAD
Taking everything into account, ENGH scores 6 out of 10 in our fundamental rating. ENGH was compared to 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 not valued too expensively and it also shows a decent growth rate.
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.
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
ENGH's Return On Assets of 9.83% is amongst the best of the industry. ENGH outperforms 82.54% of its industry peers.
ENGH has a better Return On Equity (14.02%) than 74.60% of its industry peers.
ENGH has a Return On Invested Capital of 12.22%. This is amongst the best in the industry. ENGH outperforms 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 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 14.02% | ||
| ROIC | 12.22% |
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 16.82%. This is amongst the best in the industry. ENGH outperforms 87.30% of its industry peers.
In the last couple of years the Profit Margin of ENGH has declined.
Looking at the Operating Margin, with a value of 18.81%, ENGH belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of ENGH has declined.
The Gross Margin of ENGH (64.73%) is better than 68.25% 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 | 18.81% | ||
| PM (TTM) | 16.82% | ||
| GM | 64.73% |
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.
Compared to 5 years ago, ENGH has more shares outstanding
Compared to 1 year ago, ENGH has an improved debt to assets ratio.
2.2 Solvency
ENGH has an Altman-Z score of 4.86. This indicates that ENGH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.86, ENGH is doing good in the industry, outperforming 77.78% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.09, ENGH belongs to the top 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 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.86 |
ROIC/WACC1.24
WACC9.86%
2.3 Liquidity
ENGH has a Current Ratio of 1.76. 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 better Current ratio (1.76) than 60.32% of its industry peers.
ENGH has a Quick Ratio of 1.76. This is a normal value and indicates that ENGH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.76, ENGH is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.79% over the past year.
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.
The Revenue has grown by 8.11% in the past year. This is quite good.
ENGH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
EPS 1Y (TTM)15.79%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%21.21%
Revenue 1Y (TTM)8.11%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%2.91%
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 5.66% on average per year.
Based on estimates for the next years, ENGH will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y5.47%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
EPS Next 5YN/A
Revenue Next Year1%
Revenue Next 2Y4.15%
Revenue Next 3Y4.08%
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
A Price/Earnings ratio of 14.96 indicates a correct valuation of ENGH.
ENGH's Price/Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 84.13% of the companies in the same industry.
ENGH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 13.89, which indicates a correct valuation of ENGH.
85.71% of the companies in the same industry are more expensive than ENGH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ENGH to the average of the S&P500 Index (22.39), we can say ENGH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
ENGH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ENGH is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 7.08 |
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)2.74
PEG (5Y)5.65
EPS Next 2Y6.24%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 4.56%, which is a nice return.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 1.65. ENGH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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 65.08% 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.
DP65.08%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
TSX:ENGH (6/12/2025, 7:00:00 PM)
23.04
-0.02 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners38.88%
Inst Owner ChangeN/A
Ins Owners22%
Ins Owner ChangeN/A
Market Cap1.27B
Analysts45.45
Price Target29.58 (28.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend0.96
Dividend Growth(5Y)19.11%
DP65.08%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.5%
Min EPS beat(2)-1.96%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)1.18%
Min EPS beat(4)-1.96%
Max EPS beat(4)6.95%
EPS beat(8)4
Avg EPS beat(8)-3.6%
EPS beat(12)5
Avg EPS beat(12)0.91%
EPS beat(16)6
Avg EPS beat(16)0.34%
Revenue beat(2)0
Avg Revenue beat(2)-5.53%
Min Revenue beat(2)-7.49%
Max Revenue beat(2)-3.57%
Revenue beat(4)1
Avg Revenue beat(4)-3.07%
Min Revenue beat(4)-7.49%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)2
Avg Revenue beat(12)-3.48%
Revenue beat(16)2
Avg Revenue beat(16)-4.39%
PT rev (1m)2.35%
PT rev (3m)-13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 13.89 | ||
| P/S | 2.51 | ||
| P/FCF | 9.67 | ||
| P/OCF | 9.53 | ||
| P/B | 2.09 | ||
| P/tB | 6.7 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)1.54
EY6.68%
EPS(NY)1.66
Fwd EY7.2%
FCF(TTM)2.38
FCFY10.34%
OCF(TTM)2.42
OCFY10.5%
SpS9.17
BVpS11.01
TBVpS3.44
PEG (NY)2.74
PEG (5Y)5.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.83% | ||
| ROE | 14.02% | ||
| ROCE | 14.98% | ||
| ROIC | 12.22% | ||
| ROICexc | 21.3% | ||
| ROICexgc | N/A | ||
| OM | 18.81% | ||
| PM (TTM) | 16.82% | ||
| GM | 64.73% | ||
| FCFM | 25.97% |
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-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 4.3% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.85% | ||
| Profit Quality | 154.41% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 4.86 |
F-Score5
WACC9.86%
ROIC/WACC1.24
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)15.79%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%21.21%
EPS Next Y5.47%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
EPS Next 5YN/A
Revenue 1Y (TTM)8.11%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%2.91%
Revenue Next Year1%
Revenue Next 2Y4.15%
Revenue Next 3Y4.08%
Revenue Next 5YN/A
EBIT growth 1Y10.38%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year18.46%
EBIT Next 3Y11.66%
EBIT Next 5YN/A
FCF growth 1Y22.72%
FCF growth 3Y4.16%
FCF growth 5Y10.43%
OCF growth 1Y23.42%
OCF growth 3Y3.69%
OCF growth 5Y10.16%