ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENGH - CA2929491041 - Common Stock
20.2 CAD
+0.11 (+0.55%)
We assign a fundamental rating of 6 out of 10 to ENGH. ENGH was compared to 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
ENGH had positive earnings in the past year.
In the past year ENGH had a positive cash flow from operations.
In the past 5 years ENGH has always been profitable.
In the past 5 years ENGH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.86%, ENGH belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.47%, ENGH belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Return On Invested Capital of ENGH (11.55%) is better than 85.71% of its industry peers.
ENGH had an Average Return On Invested Capital over the past 3 years of 12.81%. This is in line with the industry average of 12.27%.
| 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 Profit Margin of 15.03%. 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.
ENGH has a better Operating Margin (17.86%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of ENGH has declined.
With a decent Gross Margin value of 63.84%, ENGH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 | 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.
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
ENGH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.60 indicates that ENGH is not in any danger for bankruptcy at the moment.
ENGH's Altman-Z score of 4.60 is fine compared to the rest of the industry. ENGH outperforms 71.43% 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.
ENGH has a better Debt to FCF ratio (0.09) than 93.65% 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 has a Debt to Equity ratio of 0.01. This is in the better half of the industry: ENGH outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.6 |
ROIC/WACC1.14
WACC10.11%
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.
Looking at the Current ratio, with a value of 1.72, ENGH is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
ENGH has a Quick 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's Quick ratio of 1.72 is fine compared to the rest of the industry. ENGH outperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
ENGH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.93%.
ENGH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.65% yearly.
Looking at the last year, ENGH shows a small growth in Revenue. The Revenue has grown by 0.03% in the last year.
ENGH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
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
The Earnings Per Share is expected to grow by 3.44% on average over the next years.
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-8.76%
EPS Next 2Y-0.3%
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
With a Price/Earnings ratio of 14.85, ENGH is valued correctly.
90.48% of the companies in the same industry are more expensive than ENGH, based on the Price/Earnings ratio.
ENGH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.82 indicates a correct valuation of ENGH.
ENGH's Price/Forward Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 80.95% of the companies in the same industry.
ENGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 85.71% of the companies listed 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 87.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.69 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
ENGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.61
EPS Next 2Y-0.3%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 6.06%, which is a nice return.
Compared to an average industry Dividend Yield of 1.76, ENGH pays a better dividend. On top of this ENGH pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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
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 2Y-0.3%
EPS Next 3Y3.44%
TSX:ENGH (11/27/2025, 7:00:00 PM)
20.2
+0.11 (+0.55%)
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 Cap1.11B
Revenue(TTM)500.10M
Net Income(TTM)75.18M
Analysts46.67
Price Target23.72 (17.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.06% |
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%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 13.82 | ||
| P/S | 2.23 | ||
| P/FCF | 9.69 | ||
| P/OCF | 9.54 | ||
| P/B | 1.85 | ||
| P/tB | 6.51 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)1.36
EY6.73%
EPS(NY)1.46
Fwd EY7.23%
FCF(TTM)2.09
FCFY10.32%
OCF(TTM)2.12
OCFY10.48%
SpS9.08
BVpS10.94
TBVpS3.1
PEG (NY)N/A
PEG (5Y)5.61
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 | 4.6 |
F-Score6
WACC10.11%
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-8.76%
EPS Next 2Y-0.3%
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 -8.76% 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%.