ScoreWhy is Enghouse Systems Ltd. ?
1
High Management Efficiency with a high ROE of 17.24%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 90.58
3
Poor long term growth as Operating profit has grown by an annual rate -4.36% of over the last 5 years
4
Flat results in Apr 25
- ROCE(HY) Lowest at 13.39%
- INTEREST COVERAGE RATIO(Q) Lowest at 18,429.68
- OPERATING PROFIT(Q) Lowest at CAD 28.57 MM
5
With ROE of 13.10%, it has a fair valuation with a 1.92 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -37.19%, its profits have fallen by -7.2%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -37.19% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Enghouse Systems Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Enghouse Systems Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Enghouse Systems Ltd.
-32.95%
-1.01
27.82%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.32%
EBIT Growth (5y)
-4.36%
EBIT to Interest (avg)
90.58
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
0.82
Tax Ratio
19.65%
Dividend Payout Ratio
70.78%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
34.21%
ROE (avg)
17.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.90
EV to EBIT
9.83
EV to EBITDA
6.78
EV to Capital Employed
2.61
EV to Sales
1.76
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
26.55%
ROE (Latest)
13.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 129.83 MM
DIVIDEND PER SHARE(HY)
Highest at CAD 4.68
DIVIDEND PAYOUT RATIO(Y)
Highest at 122.95%
RAW MATERIAL COST(Y)
Fallen by -0.98% (YoY
CASH AND EQV(HY)
Highest at CAD 534.61 MM
-11What is not working for the Company
ROCE(HY)
Lowest at 13.39%
INTEREST COVERAGE RATIO(Q)
Lowest at 18,429.68
OPERATING PROFIT(Q)
Lowest at CAD 28.57 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 22.89 %
PRE-TAX PROFIT(Q)
Lowest at CAD 18.19 MM
NET PROFIT(Q)
Lowest at CAD 14.58 MM
EPS(Q)
Lowest at CAD 0.24
Here's what is working for Enghouse Systems Ltd.
Operating Cash Flow
Highest at CAD 129.83 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Dividend per share
Highest at CAD 4.68 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (CAD)
Cash and Eqv
Highest at CAD 534.61 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 122.95%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -0.98% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Enghouse Systems Ltd.
Interest Coverage Ratio
Lowest at 18,429.68
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CAD 28.57 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 22.89 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CAD 18.19 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Pre-Tax Profit
At CAD 18.19 MM has Fallen at -32.33%
over average net sales of the previous four periods of CAD 26.88 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Net Profit
Lowest at CAD 14.58 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Net Profit
At CAD 14.58 MM has Fallen at -32.48%
over average net sales of the previous four periods of CAD 21.6 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD 0.24
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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