ENGHOUSE SYSTEMS LTD (ENGH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ENGH - CA2929491041 - Common Stock
20.4 CAD
-0.25 (-1.21%)
Taking everything into account, ENGH scores 6 out of 10 in our fundamental rating. ENGH was compared to 65 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 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.
ENGH had positive earnings in 4 of the past 5 years.
Of the past 5 years ENGH 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.86%, ENGH belongs to the top of the industry, outperforming 89.23% 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 81.54% of the companies in the same industry.
ENGH has a better Return On Invested Capital (11.55%) than 87.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ENGH is in line with the industry average of 11.86%.
| 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 90.77% of its industry peers.
In the last couple of years the Profit Margin of ENGH has declined.
Looking at the Operating Margin, with a value of 17.86%, ENGH belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
ENGH's Operating Margin has declined in the last couple of years.
ENGH has a Gross Margin of 63.84%. This is in the better half of the industry: ENGH outperforms 67.69% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENGH is still creating some value.
There is no outstanding debt for ENGH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.61 indicates that ENGH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.61, ENGH is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
ENGH has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
The Debt to FCF ratio of ENGH (0.09) is better than 92.31% 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 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.15
WACC10.05%
2.3 Liquidity
A Current Ratio of 1.72 indicates that ENGH should not have too much problems paying its short term obligations.
ENGH has a better Current ratio (1.72) than 61.54% of its industry peers.
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.
With a decent Quick ratio value of 1.72, ENGH is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| 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 -9.52%.
ENGH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.45% yearly.
EPS 1Y (TTM)-9.52%
EPS 3Y-8.04%
EPS 5Y-5.45%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.97%
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 10.60% on average per year.
The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y9.86%
EPS Next 2Y10.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y7.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ENGH is valuated correctly with a Price/Earnings ratio of 15.34.
90.77% 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 26.50, ENGH is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.96, which 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 83.08% 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 (23.93), we can say ENGH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ENGH is valued cheaper than 86.15% of the companies in the same industry.
90.77% of the companies in the same industry are more expensive than ENGH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
ENGH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ENGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.74%, ENGH is a good candidate for dividend investing.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 0.23. ENGH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
5.2 History
The dividend of ENGH is nicely growing with an annual growth rate of 19.11%!
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
79.39% of the earnings are spent on dividend by ENGH. 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 2Y10.6%
EPS Next 3YN/A
TSX:ENGH (12/23/2025, 7:00:00 PM)
20.4
-0.25 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners40.17%
Inst Owner ChangeN/A
Ins Owners22.16%
Ins Owner ChangeN/A
Market Cap1.12B
Revenue(TTM)N/A
Net Income(TTM)75.18M
Analysts46.67
Price Target23.72 (16.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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)0%
PT rev (3m)-1.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.34 | ||
| Fwd PE | 13.96 | ||
| P/S | 2.23 | ||
| P/FCF | 9.72 | ||
| P/OCF | 9.58 | ||
| P/B | 1.85 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)1.33
EY6.52%
EPS(NY)1.46
Fwd EY7.16%
FCF(TTM)2.1
FCFY10.29%
OCF(TTM)2.13
OCFY10.44%
SpS9.13
BVpS11.01
TBVpS3.12
PEG (NY)1.56
PEG (5Y)N/A
Graham Number18.15
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 | 4.61 |
F-Score6
WACC10.05%
ROIC/WACC1.15
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)-9.52%
EPS 3Y-8.04%
EPS 5Y-5.45%
EPS Q2Q%-7.32%
EPS Next Y9.86%
EPS Next 2Y10.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.97%
Revenue Next Year2.66%
Revenue Next 2Y7.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.26%
EBIT growth 3Y-5.83%
EBIT growth 5Y3.1%
EBIT Next Year7.33%
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 grow by 9.86% 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%.