ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
TSX:ENGH • CA2929491041
17.26 CAD
-0.38 (-2.15%)
Last: Feb 13, 2026, 07:00 PM
ENGH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 69 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 cheap, but on the other hand it scores bad on growth. These ratings could make ENGH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year ENGH was profitable.
- ENGH had a positive operating cash flow in the past year.
- ENGH had positive earnings in each of the past 5 years.
- Each year in the past 5 years ENGH had a positive operating cash flow.
1.2 Ratios
- ENGH has a better Return On Assets (8.60%) than 85.51% of its industry peers.
- The Return On Equity of ENGH (12.09%) is better than 79.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.33%, ENGH belongs to the top of the industry, outperforming 86.96% 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 | 8.6% | ||
| 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
- With an excellent Profit Margin value of 14.77%, ENGH belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- In the last couple of years the Profit Margin of ENGH has declined.
- With an excellent Operating Margin value of 18.03%, ENGH belongs to the best of the industry, outperforming 84.06% 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 63.60%, ENGH is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
- ENGH's Gross Margin has declined in the last couple of years.
| 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.
- Compared to 1 year ago, ENGH has less shares outstanding
- Compared to 5 years ago, ENGH has less shares outstanding
- The debt/assets ratio for ENGH has been reduced compared to a year ago.
2.2 Solvency
- ENGH has an Altman-Z score of 4.15. This indicates that ENGH is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ENGH (4.15) is better than 76.81% of its industry peers.
- The Debt to FCF ratio of ENGH is 0.11, which is an excellent value as it means it would take ENGH, only 0.11 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ENGH (0.11) is better than 88.41% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that ENGH is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.01, ENGH is doing good in the industry, outperforming 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.09
WACC10.36%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that ENGH should not have too much problems paying its short term obligations.
- ENGH has a Current ratio of 1.71. This is in the better half of the industry: ENGH outperforms 62.32% of its industry peers.
- ENGH has a Quick 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.
- ENGH has a better Quick ratio (1.71) than 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
- ENGH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.52%.
- Measured over the past years, ENGH shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.45% on average per year.
- Looking at the last year, ENGH shows a decrease in Revenue. The Revenue has decreased by -0.72% in the last year.
- The Revenue has been decreasing by -0.20% 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)-0.72%
Revenue growth 3Y5.27%
Revenue growth 5Y-0.2%
Sales Q2Q%-0.97%
3.2 Future
- ENGH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
- The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y16.57%
EPS Next 2Y11.81%
EPS Next 3Y9.24%
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.
- The Revenue 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
- A Price/Earnings ratio of 12.98 indicates a correct valuation of ENGH.
- 84.06% of the companies in the same industry are more expensive than ENGH, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.19, ENGH is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.13, the valuation of ENGH can be described as reasonable.
- 81.16% of the companies in the same industry are more expensive than ENGH, based on the Price/Forward Earnings ratio.
- ENGH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaply inside the industry as 81.16% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ENGH is valued cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
- ENGH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ENGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y11.81%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
- ENGH has a Yearly Dividend Yield of 6.80%, which is a nice return.
- ENGH's Dividend Yield is rather good when compared to the industry average which is at 0.29. ENGH pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
5.2 History
- On average, the dividend of ENGH grows each year by 17.99%, which is quite nice.
- ENGH has been paying a dividend for at least 10 years, so it has 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
- ENGH pays out 83.91% 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.
DP83.91%
EPS Next 2Y11.81%
EPS Next 3Y9.24%
TSX:ENGH (2/13/2026, 7:00:00 PM)
17.26
-0.38 (-2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-15 2025-12-15/amc
Earnings (Next)03-05 2026-03-05
Inst Owners40.53%
Inst Owner ChangeN/A
Ins Owners22.16%
Ins Owner ChangeN/A
Market Cap940.67M
Revenue(TTM)498.88M
Net Income(TTM)73.67M
Analysts46.67
Price Target22.19 (28.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
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)-1.14%
PT rev (3m)-6.45%
EPS NQ rev (1m)3.47%
EPS NQ rev (3m)9.56%
EPS NY rev (1m)2.7%
EPS NY rev (3m)6.11%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.13 | ||
| P/S | 1.89 | ||
| P/FCF | 9.12 | ||
| P/OCF | 8.99 | ||
| P/B | 1.54 | ||
| P/tB | 5.28 | ||
| EV/EBITDA | 5.35 |
EPS(TTM)1.33
EY7.71%
EPS(NY)1.55
Fwd EY8.98%
FCF(TTM)1.89
FCFY10.97%
OCF(TTM)1.92
OCFY11.12%
SpS9.15
BVpS11.18
TBVpS3.27
PEG (NY)0.78
PEG (5Y)N/A
Graham Number18.29
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 | 4.15 |
F-Score4
WACC10.36%
ROIC/WACC1.09
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 Y16.57%
EPS Next 2Y11.81%
EPS Next 3Y9.24%
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 7 / 10 to ENGH.CA.
What is the valuation status for ENGH stock?
ChartMill assigns a valuation rating of 8 / 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%.