
TSE:ENGH
This summary was created by AI, based on 7 opinions in the last 12 months.
Enghouse Systems (ENGH-T) appears to be under significant pressure from investors and analysts alike, with many expressing skepticism about the software sector's future given the rise of AI technologies. Despite a recent earnings report showing a slight revenue decline but an EPS beat, the stock's overall performance has not been encouraging, as many analysts note the challenges the sector faces, often comparing it to obsolete industries. Some reviewers highlight the company's substantial cash reserves but criticize its lack of strategic reinvestment and shareholder friendliness. The dichotomy between being a potential value trap and being attractive for income-focused investors complicates the investment narrative, with a high dividend yield suggesting limited reinvestment in growth. Overall, there is a sense of caution regarding the long-term growth prospects for Enghouse, with varying opinions on the best course of action for current shareholders.
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.