TSE:ENGH

Enghouse Systems (ENGH.TO)

17.92
-0.01 (0.06%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Enghouse Systems (ENGH) has been facing significant challenges in its execution and fundamentals, leaving many experts skeptical about its future. The software sector, particularly for smaller-cap companies, is under strain, with concerns about AI's impact leading to multiple contractions in valuations. While the company has a strong cash position, insights suggest that it has struggled to reinvest for growth, leading to a negative long-term return for shareholders. Although seen as a potential income investment due to its high yield, it is viewed as a value trap by some, especially given its stagnant revenue and aggressive declines. Experts are mixed in their outlook, with some advising caution and preference for larger companies in better growth positions.

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Consensus
Bearish
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Valuation
Undervalued
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Similar
CSU
BUY
Brilliant management. You'll do well in the long-term. Probably heavily owned by institutional investors, which creates price swings when they move positions. Don't worry. Put it away for 3-5 years and you'll be very happy.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There has been no news to account for the downtrend for the last couple weeks. Last week’s pullback was probably market sector rotation. It is likely a good time to step in for someone who expects to hold the stock long term. Unlock Premium - Try 5i Free

BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock pulled back for no particular reason today despite positive news. The drop only takes the stock back to September only and the volume was as usual. Unlock Premium - Try 5i Free

BUY

Billy Kawasaki’s Insights - Picks from 5i Research. The last quarter results were fine. They beat earnings estimates by 10% and earnings per share was much higher than the consensus. Their revenue is up 30% year over year. The company has a great balance sheet and a good management team. Unlock Premium - Try 5i Free

TOP PICK

Bought it in March after they bought a videoconferencing company. He'd been watching this stock and their great track record of purchases. They're a Canadian tech consolidator, though smaller than CSU in market cap. They have incredibly consistent cash flow that they deploy well with purchases. The shares are being re-rated because of their videoconferencing exposure. Enghouse will continue to benefit from work from home. He sees a lot of organic growth ahead. Really likes it, enjoying great tailwinds. (Analysts’ price target is $89.67)

PARTIAL BUY
Very well-run, going gangbusters because video technology has taken off during COVID. It trades at nearly 50x PE, so careful adding to this. Then again, you can buy a half position now and wait. They make small acquisitions enhances the company's offerings. Price is high now. This depends on how long COVID lasts and people continue to use videoconferencing.
BUY ON WEAKNESS
Tele-medicine sector? He likes ENGH, which just made an acquisition that will allow them to grow a software base visual offering. The problem is that there are other competitors out there and the stock is trading at analysts forward price targets -- it is getting expensive. He would watch for a pullback into the $60s range. (Analysts’ price target is $75.00)
TOP PICK
A new position he bought into in March. A great Canadian technology success stories. They have acquired some great businesses in the past few years and are now reaching critical mass into different business lines that generate very sustainable cash streams. This includes tele-health. He thinks there will be distressed assets that they may be able to acquire. Yield 1.05% (Analysts’ price target is $53.40)
TOP PICK
Free cash flow is expected to increase 43% this year and 28% next year. (Analysts’ price target is $57.60)
BUY ON WEAKNESS
Runs a good shop. Rich valuation. Look for an entry level here.
BUY

ENGH is a very well-run company. They have more organic growth than Constellation Softwares.

BUY
He has it in TFSAs for his clients. He sees no reason to sell it. It's a software firm in telecommunication and utilities industry. It improves and takes care of what's going on in the company. Free cash flow is growing and dividend is growing. 2/3 of long-term growth comes from dividend growth.
BUY

It's a mini-Constellation Software. ENG is a good company, well-run, and the stock has enjoyed a great rise. Smart managers make accretive acquisitions.

BUY
We've seen upside this year, with the stock up 30%. A software company that works in telecom and utilities. They chug along and do little acquisition. A very easy business. Good stock performance that should continue.
TOP PICK
A grow by acquisition company that offers customer integration software and services. 1% yield with 16% increase in sales. Their return on equity is good, with a forecast to grow cash flow per share by 57%. There is a 21% chance of upside. (Analysts’ price target is $44.90)
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