ENGHOUSE SYSTEMS LTD (ENGH.CA)
CA2929491041 - Common Stock
We assign a fundamental rating of 6 out of 10 to ENGH. ENGH was compared to 67 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 correct valuation and a medium 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.
ENGH had positive earnings in each of the past 5 years.
Each year in the past 5 years ENGH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ENGH (9.97%) is better than 86.57% of its industry peers.
ENGH's Return On Equity of 14.33% is amongst the best of the industry. ENGH outperforms 82.09% of its industry peers.
The Return On Invested Capital of ENGH (11.18%) is better than 88.06% 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 11.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 14.33% | ||
| ROIC | 11.18% |
ROA(3y)12.13%
ROA(5y)12.26%
ROE(3y)17.34%
ROE(5y)17.9%
ROIC(3y)13.1%
ROIC(5y)13.68%
1.3 Margins
Looking at the Profit Margin, with a value of 16.76%, ENGH belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
In the last couple of years the Profit Margin of ENGH has remained more or less at the same level.
The Operating Margin of ENGH (19.06%) is better than 95.52% of its industry peers.
In the last couple of years the Operating Margin of ENGH has declined.
ENGH's Gross Margin of 65.63% is fine compared to the rest of the industry. ENGH outperforms 70.15% of its industry peers.
ENGH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.06% | ||
| PM (TTM) | 16.76% | ||
| GM | 65.63% |
OM growth 3Y-7.57%
OM growth 5Y-3.2%
PM growth 3Y-6.67%
PM growth 5Y-1.12%
GM growth 3Y-2.02%
GM growth 5Y-0.84%
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 remains at a similar level compared to 1 year ago.
ENGH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ENGH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.77 indicates that ENGH is not in any danger for bankruptcy at the moment.
The Altman-Z score of ENGH (5.77) is better than 76.12% of its industry peers.
ENGH has a debt to FCF ratio of 0.11. This is a very positive value and a sign of high solvency as it would only need 0.11 years to pay back of all of its debts.
The Debt to FCF ratio of ENGH (0.11) is better than 91.04% 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.
With a decent Debt to Equity ratio value of 0.01, ENGH is doing good in the industry, outperforming 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.11 | ||
| Altman-Z | 5.77 |
ROIC/WACC1.15
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.69 indicates that ENGH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, ENGH is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that ENGH should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.69, ENGH is doing good in the industry, outperforming 62.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for ENGH have decreased by -1.31% in the last year.
Measured over the past 5 years, ENGH shows a small growth in Earnings Per Share. The EPS has been growing by 4.52% on average per year.
Looking at the last year, ENGH shows a quite strong growth in Revenue. The Revenue has grown by 13.89% in the last year.
Measured over the past years, ENGH shows a small growth in Revenue. The Revenue has been growing by 5.78% on average per year.
EPS 1Y (TTM)-1.31%
EPS 3Y-9.37%
EPS 5Y4.52%
EPS Q2Q%15.62%
Revenue 1Y (TTM)13.89%
Revenue growth 3Y-3.41%
Revenue growth 5Y5.78%
Sales Q2Q%17.57%
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 15.16% on average per year.
ENGH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.29% yearly.
EPS Next Y14.98%
EPS Next 2Y15.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.21%
Revenue Next 2Y10.29%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.60, which indicates a rather expensive current valuation of ENGH.
Based on the Price/Earnings ratio, ENGH is valued cheaper than 85.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.53, ENGH is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.04, which indicates a rather expensive current valuation of ENGH.
Based on the Price/Forward Earnings ratio, ENGH is valued cheaply inside the industry as 89.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ENGH to the average of the S&P500 Index (23.40), we can say ENGH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 17.04 |
4.2 Price Multiples
77.61% of the companies in the same industry are more expensive than ENGH, based on the Enterprise Value to EBITDA ratio.
82.09% 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 | 12.92 | ||
| EV/EBITDA | 9.53 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as ENGH's earnings are expected to grow with 15.16% in the coming years.
PEG (NY)1.31
PEG (5Y)4.33
EPS Next 2Y15.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ENGH has a Yearly Dividend Yield of 3.47%.
ENGH's Dividend Yield is rather good when compared to the industry average which is at 1.72. ENGH pays more dividend than 98.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.22, ENGH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of ENGH grows each year by 19.04%, 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 recently.
Dividend Growth(5Y)19.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
60.73% 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.
DP60.73%
EPS Next 2Y15.16%
EPS Next 3YN/A
ENGHOUSE SYSTEMS LTD
TSX:ENGH (11/15/2024, 7:00:00 PM)
29.6
-0.41 (-1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 17.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.31
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.97% | ||
| ROE | 14.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.06% | ||
| PM (TTM) | 16.76% | ||
| GM | 65.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.31%
EPS 3Y-9.37%
EPS 5Y
EPS Q2Q%
EPS Next Y14.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.89%
Revenue growth 3Y-3.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y