ENGH:CA:TSX-Enghouse Systems Limited (CAD)

EQUITY | Software—Application | Toronto Stock Exchange

Last Closing

CAD 50.95

Change

-0.87 (-1.68)%

Market Cap

CAD 1.43B

Volume

0.07M

Analyst Target

CAD 51.60
Analyst Rating

N/A

ducovest Verdict

Verdict

About

Enghouse Systems Ltd develops enterprise software solutions for a number of vertical markets. The Company operates in two segments: the Interactive Management Group and the Asset Management Group.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2020-01-27 )

Largest Industry Peers for Software—Application

ETFs Containing ENGH:CA

N/A

Market Performance

  Market Performance vs. Industry/Classification (Software—Application) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 5.75% 22% F 88% B+
Dividend Return N/A N/A N/A N/A N/A
Total Return 5.75% 22% F 88% B+
Trailing 12 Months  
Capital Gain 38.11% 38% F 90% A-
Dividend Return 1.14% 50% F 29% F
Total Return 39.25% 38% F 89% A-
Trailing 5 Years  
Capital Gain 150.55% 75% C 93% A
Dividend Return 7.77% 100% F 25% F
Total Return 158.32% 75% C 93% A
Average Annual (5 Year Horizon)  
Capital Gain 10.05% 47% F 78% C+
Dividend Return 11.13% 47% F 76% C+
Total Return 1.08% 50% F 26% F
Risk Return Profile  
Volatility (Standard Deviation) 19.34% 71% C- 41% F
Risk Adjusted Return 57.56% 65% D 62% D
Market Capitalization 1.43B 44% F 84% B

Key Financial Ratios

  Ratio vs. Industry/Classification (Software—Application) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 36.50 100% 14%
Price/Book Ratio 7.06 67% 9%
Price / Cash Flow Ratio 34.86 56% 4%
Price/Free Cash Flow Ratio 27.36 44% 6%
Management Effectiveness  
Return on Equity 18.84% 100% 92%
Return on Invested Capital 18.04% 100% 93%
Return on Assets 9.38% 100% 95%
Debt to Equity Ratio 0.22% 83% 94%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector