ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
TSX:ENGH - Toronto Stock Exchange - CA2929491041 - Common Stock - Currency: CAD
Overall ENGH gets a fundamental rating of 6 out of 10. We evaluated ENGH against 60 industry peers in the Software industry. ENGH gets an excellent profitability rating and is at the same time showing great financial health properties. ENGH has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years ENGH has been profitable.
Each year in the past 5 years ENGH had a positive operating cash flow.
1.2 Ratios
ENGH has a Return On Assets of 9.05%. This is amongst the best in the industry. ENGH outperforms 83.33% of its industry peers.
ENGH's Return On Equity of 13.07% is fine compared to the rest of the industry. ENGH outperforms 76.67% of its industry peers.
The Return On Invested Capital of ENGH (11.88%) is better than 86.67% 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 12.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 13.07% | ||
| ROIC | 11.88% |
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
With an excellent Profit Margin value of 15.56%, ENGH belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ENGH has declined.
The Operating Margin of ENGH (18.21%) is better than 88.33% of its industry peers.
ENGH's Operating Margin has declined in the last couple of years.
ENGH's Gross Margin of 64.11% is fine compared to the rest of the industry. ENGH outperforms 68.33% of its industry peers.
ENGH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.21% | ||
| PM (TTM) | 15.56% | ||
| GM | 64.11% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENGH is still creating some value.
ENGH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ENGH has been increased compared to 5 years ago.
ENGH has a better debt/assets ratio than last year.
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 better Altman-Z score (4.62) than 73.33% of its industry peers.
The Debt to FCF ratio of ENGH is 0.08, which is an excellent value as it means it would take ENGH, only 0.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.08, ENGH belongs to the top of the industry, outperforming 91.67% 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's Debt to Equity ratio of 0.01 is amongst the best of the industry. ENGH outperforms 81.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 4.62 |
ROIC/WACC1.13
WACC10.51%
2.3 Liquidity
ENGH has a Current Ratio of 1.63. 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 1.63, ENGH is in line with its industry, outperforming 56.67% of the companies in the same industry.
ENGH has a Quick Ratio of 1.63. 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 Quick ratio (1.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
ENGH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.74%.
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 5.12% in the last year.
Measured over the past years, ENGH shows a small growth in Revenue. The Revenue has been growing by 5.42% on average per year.
EPS 1Y (TTM)-2.74%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)5.12%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%-0.79%
3.2 Future
The Earnings Per Share is expected to grow by 5.66% 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 3.47% yearly.
EPS Next Y5.47%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y2.09%
Revenue Next 3Y3.47%
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 15.75 indicates a correct valuation of ENGH.
ENGH's Price/Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 88.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of ENGH to the average of the S&P500 Index (26.93), we can say ENGH is valued slightly cheaper.
ENGH is valuated correctly with a Price/Forward Earnings ratio of 13.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ENGH to the average of the S&P500 Index (35.31), we can say ENGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 13.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaper than 83.33% of the companies 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 88.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 7.25 |
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.
The decent profitability rating of ENGH may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)5.95
EPS Next 2Y6.24%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 5.39%, which is a nice return.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 1.78. 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
On average, the dividend of ENGH grows each year by 19.11%, 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)19.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
73.21% 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.
DP73.21%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
TSX:ENGH (8/14/2025, 7:00:00 PM)
22.36
-0.1 (-0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners37.67%
Inst Owner ChangeN/A
Ins Owners22%
Ins Owner ChangeN/A
Market Cap1.23B
Analysts45.45
Price Target25.67 (14.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend0.96
Dividend Growth(5Y)19.11%
DP73.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.01%
Min EPS beat(2)-36.97%
Max EPS beat(2)6.95%
EPS beat(4)2
Avg EPS beat(4)-7.57%
Min EPS beat(4)-36.97%
Max EPS beat(4)6.95%
EPS beat(8)4
Avg EPS beat(8)-4.53%
EPS beat(12)5
Avg EPS beat(12)-0.66%
EPS beat(16)6
Avg EPS beat(16)-0.81%
Revenue beat(2)0
Avg Revenue beat(2)-4.57%
Min Revenue beat(2)-5.58%
Max Revenue beat(2)-3.57%
Revenue beat(4)0
Avg Revenue beat(4)-4.5%
Min Revenue beat(4)-7.49%
Max Revenue beat(4)-1.35%
Revenue beat(8)1
Avg Revenue beat(8)-3.72%
Revenue beat(12)2
Avg Revenue beat(12)-3.21%
Revenue beat(16)2
Avg Revenue beat(16)-4.25%
PT rev (1m)0%
PT rev (3m)-11.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.78%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-1.99%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 13.48 | ||
| P/S | 2.44 | ||
| P/FCF | 9.64 | ||
| P/OCF | 9.49 | ||
| P/B | 2.05 | ||
| P/tB | 7.57 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)1.42
EY6.35%
EPS(NY)1.66
Fwd EY7.42%
FCF(TTM)2.32
FCFY10.37%
OCF(TTM)2.36
OCFY10.54%
SpS9.16
BVpS10.91
TBVpS2.95
PEG (NY)2.88
PEG (5Y)5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 13.07% | ||
| ROCE | 14.56% | ||
| ROIC | 11.88% | ||
| ROICexc | 20.39% | ||
| ROICexgc | N/A | ||
| OM | 18.21% | ||
| PM (TTM) | 15.56% | ||
| GM | 64.11% | ||
| FCFM | 25.31% |
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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 4.66% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.15% | ||
| Profit Quality | 162.66% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 4.62 |
F-Score4
WACC10.51%
ROIC/WACC1.13
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)-2.74%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-33.33%
EPS Next Y5.47%
EPS Next 2Y6.24%
EPS Next 3Y5.66%
EPS Next 5YN/A
Revenue 1Y (TTM)5.12%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%-0.79%
Revenue Next Year-1.01%
Revenue Next 2Y2.09%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y1.19%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year18.46%
EBIT Next 3Y11.66%
EBIT Next 5YN/A
FCF growth 1Y34.66%
FCF growth 3Y4.16%
FCF growth 5Y10.43%
OCF growth 1Y35.73%
OCF growth 3Y3.69%
OCF growth 5Y10.16%