ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
TSX:ENGH - Toronto Stock Exchange - CA2929491041 - Common Stock - Currency: CAD
ENGH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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.
ENGH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ENGH has a better Return On Assets (9.83%) than 84.13% of its industry peers.
The Return On Equity of ENGH (14.02%) is better than 76.19% of its industry peers.
With an excellent Return On Invested Capital value of 12.22%, ENGH belongs to the best of the industry, outperforming 85.71% 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 13.74%.
| 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
The Profit Margin of ENGH (16.82%) is better than 88.89% of its industry peers.
ENGH's Profit Margin has declined in the last couple of years.
The Operating Margin of ENGH (18.81%) is better than 88.89% of its industry peers.
In the last couple of years the Operating Margin of ENGH has declined.
With a decent Gross Margin value of 64.73%, ENGH is doing good in the industry, outperforming 69.84% 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 | 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
The debt/assets ratio for ENGH has been reduced compared to a year ago.
2.2 Solvency
ENGH has an Altman-Z score of 5.29. This indicates that ENGH is financially healthy and has little risk of bankruptcy at the moment.
ENGH's Altman-Z score of 5.29 is fine compared to the rest of the industry. ENGH outperforms 77.78% 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.
The Debt to FCF ratio of ENGH (0.09) is better than 92.06% 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 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 | 5.29 |
ROIC/WACC1.28
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.76 indicates that ENGH should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.76, ENGH is doing good in the industry, outperforming 65.08% of the companies in the same industry.
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.
ENGH has a better Quick ratio (1.76) than 65.08% of its industry peers.
| 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.
ENGH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.11%.
The Revenue has been growing slightly by 5.42% on average over the past years.
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.
The Revenue is expected to grow by 4.08% on average over the next years.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.11 indicates a rather expensive valuation of ENGH.
84.13% 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 26.03, ENGH is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of ENGH.
88.89% of the companies in the same industry are more expensive than ENGH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.94. ENGH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than ENGH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ENGH is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ENGH does not grow enough to justify the current Price/Earnings ratio.
ENGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)6.46
EPS Next 2Y6.24%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, ENGH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.79, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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 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 (5/21/2025, 7:00:00 PM)
26.35
-0.12 (-0.45%)
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 Cap1.45B
Analysts45.45
Price Target28.9 (9.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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)-2.3%
PT rev (3m)-12.14%
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)-1%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 15.88 | ||
| P/S | 2.87 | ||
| P/FCF | 11.06 | ||
| P/OCF | 10.89 | ||
| P/B | 2.39 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)1.54
EY5.84%
EPS(NY)1.66
Fwd EY6.3%
FCF(TTM)2.38
FCFY9.04%
OCF(TTM)2.42
OCFY9.18%
SpS9.17
BVpS11.01
TBVpS3.44
PEG (NY)3.13
PEG (5Y)6.46
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 | 5.29 |
F-Score5
WACC9.58%
ROIC/WACC1.28
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 Year18.95%
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%