Enghouse Systems (ENGH.TO) Buy, Sell or Hold

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Enghouse Systems (ENGH.TO)

15.75

-0.56 (3.43%)

as of Sep 8, 2026, 8:00:00 pm Market Open.

320 watching

Investor Insights

Sep 8, 2026, 12:00 am

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.

Consensus

Negative

Valuation

Undervalued

Similar

CSU, CSU

BUY

Impressed with last quarter and their acquisition. Turned it around. Created a lot of value for shareholders. Favours Descartes Systems, but still worthy of holding if you want to own one of the consolidators. (Analysts’ price target is $45.00)

TOP PICK

A software company that provides software for utilities and telecommunications. They are also in the video equipment business too. It's a steady income stock so it is protection against market downturn. It has performed much better than the market.

DON'T BUY

Based out of Markham, they grow by acquisition. She does not own it. They prefer a more balanced organic growth model for the tech space. It is priced fairly highly right now.

WEAK BUY

It's been pricey and gone sideways. Earnings have grown and recently the valuation has become more reasonable. They acquire well and generate good free cash flow. He will watch this closer. A quality company.

COMMENT

He admires the CEO/founder, an astute buyer of tech companies. But the ENGH valuation is high, reflecting recent acquisitions. If the buying pauses, the multiple may shrink and the stock may go sideways. It depends on his acquisitions.

HOLD

He has owned them in the past, but not now. His stock selection method does not select it, because the coming earnings quarter is negative. He would wait until after the next earnings in September. Earnings are up 8%. Payout ratio is only 21%. PE is relatively high at 23 times, but is in line with growth. A good long term hold. Yield 1.3%

WEAK BUY

He likes their strong 20% ROE and metrics. But earnings metric isn't cheap. ENG could be consolidated. Has decen't price momentum and a good valuation.

COMMENT

A valuation call, quite expensive. Growth by acquisition story similar to OpenText and Constellation Software. CEO is a big shareholder and has a very good track record. Nothing wrong here, he just doesn't like the valuation. Prefers OpenText, but they've run substantially this year. If you are looking for a value option in a growth by acquisition story, that is probably the one.

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WEAK BUY

Really good company. A software consolidator. Likes CGI and Constellation Software a bit better. Organic growth is quite reasonable. Valuation reasonable. Trading at a discount. Buy it to compound capital over the long term. Look elsewhere for dividend income. (Analysts’ price target is $43.00)

DON'T BUY

He liked it in the past. He prefers Descartes. Organic growth will be challenging and they've had some misses. The valuation has declined, but he needs to see more organic growth to get excited in this. Careful here.

COMMENT

They supply Canadian software to phone call centres. His owns Open Text and Shopify in this space instead.

HOLD

Software company. Has it in their TFSAs, because you get the full amount of the dividend, no withholding tax. Trading cheaply. Were dinged for not doing enough acquisitions, but he doesn't listen to the analysts. Dividend growth 10-15% range.

COMMENT

A software company that grows through acquisition. Earnings growth is expected to be flat. ROE is 18%. Free cash flow positive. Good opportunity going forward. The market did not like the news of another large acquisition.

TOP PICK

The banks and telecoms need call centers and they do also facility management for utilities. Quite little company. Last quarter they grew only by 1%. they have owned it for about 10 years. Payout ratio is only 8%. (Analysts’ price target is $42.25)

COMMENT

Software company, which acquires other software companies. Similar to Constellation, which is a better opportunity than this one. Smart acquirers. They say they have lots of M&A opportunities, so as long as you're comfortable with that strategy (and he is with Constellation), you should do very well. Big runway of growth, but there's lots of competition, so do your research.

Showing 91 to 105 of 138 entries

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Enghouse Systems (ENGH.TO)