
TSE:ENGH
This summary was created by AI, based on 6 opinions in the last 12 months.
Enghouse Systems (ENGH-T) is facing a challenging environment, as highlighted by various expert reviews. While the company boasts a bargain-level valuation and a solid balance sheet, concerns about the broader software sector prevail, particularly in the face of AI disruptions that some experts describe as a 'SaaS-pocalypse.' Earnings reports indicate mixed results, with a small beat on EPS but disappointing revenue figures, leading to skepticism about future growth. There are prevailing doubts regarding the adequacy of Enghouse's growth strategy, especially given the perceived decline in its business. Investors seem divided, with some having exited the stock due to lack of confidence, while others find it a potential hold for income given its dividend yield, despite worries about it being a value trap.
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.