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 66 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. This makes ENGH very considerable for quality 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.
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
The Return On Assets of ENGH (9.76%) is better than 86.36% of its industry peers.
The Return On Equity of ENGH (13.65%) is better than 81.82% of its industry peers.
ENGH's Return On Invested Capital of 12.45% is amongst the best of the industry. ENGH outperforms 86.36% 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 11.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 13.65% | ||
| ROIC | 12.45% |
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's Profit Margin of 16.18% is amongst the best of the industry. ENGH outperforms 89.39% of its industry peers.
In the last couple of years the Profit Margin of ENGH has declined.
ENGH has a better Operating Margin (18.90%) than 93.94% of its industry peers.
ENGH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 65.06%, ENGH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ENGH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.9% | ||
| PM (TTM) | 16.18% | ||
| GM | 65.06% |
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.
Compared to 1 year ago, ENGH has more shares outstanding
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
An Altman-Z score of 5.85 indicates that ENGH is not in any danger for bankruptcy at the moment.
ENGH has a better Altman-Z score (5.85) than 81.82% 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 92.42% of its industry peers.
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 fine compared to the rest of the industry. ENGH outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 5.85 |
ROIC/WACC0.98
WACC12.69%
2.3 Liquidity
A Current Ratio of 1.81 indicates that ENGH should not have too much problems paying its short term obligations.
ENGH has a Current ratio of 1.81. This is in the better half of the industry: ENGH outperforms 65.15% of its industry peers.
A Quick Ratio of 1.81 indicates that ENGH should not have too much problems paying its short term obligations.
The Quick ratio of ENGH (1.81) is better than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.21% over the past year.
ENGH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.65% yearly.
The Revenue has grown by 10.68% 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)12.21%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-8.89%
Revenue 1Y (TTM)10.68%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%2.09%
3.2 Future
Based on estimates for the next years, ENGH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.88% on average per year.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y10.85%
EPS Next 2Y9.01%
EPS Next 3Y8.88%
EPS Next 5YN/A
Revenue Next Year2.3%
Revenue Next 2Y4.85%
Revenue Next 3Y5.57%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ENGH is valuated rather expensively with a Price/Earnings ratio of 18.84.
ENGH's Price/Earnings ratio is rather cheap when compared to the industry. ENGH is cheaper than 80.30% 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 29.39.
A Price/Forward Earnings ratio of 17.00 indicates a correct valuation of ENGH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ENGH indicates a rather cheap valuation: ENGH is cheaper than 89.39% of the companies listed in the same industry.
ENGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 17 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than ENGH, based on the Enterprise Value to EBITDA ratio.
ENGH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ENGH is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
ENGH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ENGH may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)7.12
EPS Next 2Y9.01%
EPS Next 3Y8.88%
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 1.75. ENGH pays more dividend than 98.48% of the companies in the same industry.
ENGH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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.
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 65.34% 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.
DP65.34%
EPS Next 2Y9.01%
EPS Next 3Y8.88%
ENGHOUSE SYSTEMS LTD
TSX:ENGH (2/11/2025, 7:00:00 PM)
27.7
-0.57 (-2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.69%
Inst Owner ChangeN/A
Ins Owners21.98%
Ins Owner ChangeN/A
Market Cap1.53B
Analysts76
Price Target32.9 (18.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend0.96
Dividend Growth(5Y)19.11%
DP65.34%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.13%
Min EPS beat(2)-1.96%
Max EPS beat(2)1.7%
EPS beat(4)1
Avg EPS beat(4)-3.89%
Min EPS beat(4)-13.34%
Max EPS beat(4)1.7%
EPS beat(8)3
Avg EPS beat(8)-6.56%
EPS beat(12)4
Avg EPS beat(12)0.16%
EPS beat(16)5
Avg EPS beat(16)-0.68%
Revenue beat(2)0
Avg Revenue beat(2)-4.42%
Min Revenue beat(2)-7.49%
Max Revenue beat(2)-1.35%
Revenue beat(4)1
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-7.49%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-3.19%
Revenue beat(12)2
Avg Revenue beat(12)-3.63%
Revenue beat(16)2
Avg Revenue beat(16)-4.54%
PT rev (1m)-2.27%
PT rev (3m)-15.13%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)7.14%
EPS NY rev (1m)-5.19%
EPS NY rev (3m)-6.21%
Revenue NQ rev (1m)-3.12%
Revenue NQ rev (3m)-4.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 17 | ||
| P/S | 3.05 | ||
| P/FCF | 11.79 | ||
| P/OCF | 11.61 | ||
| P/B | 2.57 | ||
| P/tB | 8.19 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)1.47
EY5.31%
EPS(NY)1.63
Fwd EY5.88%
FCF(TTM)2.35
FCFY8.48%
OCF(TTM)2.39
OCFY8.61%
SpS9.08
BVpS10.76
TBVpS3.38
PEG (NY)1.74
PEG (5Y)7.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 13.65% | ||
| ROCE | 15.26% | ||
| ROIC | 12.45% | ||
| ROICexc | 22.29% | ||
| ROICexgc | N/A | ||
| OM | 18.9% | ||
| PM (TTM) | 16.18% | ||
| GM | 65.06% | ||
| FCFM | 25.89% |
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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 4.05% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.85% | ||
| Profit Quality | 159.96% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 5.85 |
F-Score7
WACC12.69%
ROIC/WACC0.98
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)12.21%
EPS 3Y-3.97%
EPS 5Y2.65%
EPS Q2Q%-8.89%
EPS Next Y10.85%
EPS Next 2Y9.01%
EPS Next 3Y8.88%
EPS Next 5YN/A
Revenue 1Y (TTM)10.68%
Revenue growth 3Y2.46%
Revenue growth 5Y5.42%
Sales Q2Q%2.09%
Revenue Next Year2.3%
Revenue Next 2Y4.85%
Revenue Next 3Y5.57%
Revenue Next 5YN/A
EBIT growth 1Y11.73%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year39.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.88%
FCF growth 3Y4.16%
FCF growth 5Y10.43%
OCF growth 1Y14.55%
OCF growth 3Y3.69%
OCF growth 5Y10.16%