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