BUY ON WEAKNESS
Enghouse Systems

Excellent company with good long term prospects.
Lots of cash on the balance sheet.
Shares not cheap enough to buy.
Will buy when shares fall.
Good business for the long term investor.

computer software / processing
HOLD
Enghouse Systems
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

4Q EPS of 31c missed estimates; revenue of $106M missed estimates by 3%. 
EBITDA of $32.2M missed estimates by 10%. 
The quarterly results have always been 'chunky' but this was certainly a miss. 
Still, the company raised its dividend 19% and has $209M cash. 
Revenue was lower due to fewer perpetual licence and hardware sales. 
There was also a large contract that had lower margins. 
We are less concerned for the future, as the acquisitions of Qumo and Navita closed after quarter-end, and these should help 2023 results. 
EPS is expected to grow faster next year. 
All in, not a great quarter and we might not expect anything here in the short term. 
At 22X earnings and with a growing dividend we would put it in the HOLD category today. 
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computer software / processing
PAST TOP PICK
Enghouse Systems
(A Top Pick Feb 16/22, Up 4%)

Went down with tech last year. Debt-free balance sheet, over $200M in cash, at a time when tech's been washed out. Acquisition activity and share buybacks ramping up. Still undervalued. FCF yield around 5.5%. He'd buy today.

computer software / processing
DON'T BUY
Enghouse Systems

In call centres and infrastructure management. An M&A story and deploying capital. But organic growth went negative on the stuff they were buying, and they were very dependent on acquisitions. This turned off the market. No strategic review happened. They need to show organic growth or make an exciting, accretive buy to excite the market.

computer software / processing
COMMENT
Enghouse Systems
It has broken out in a downward trend from its base. He doesn't trade on opinions, just the rules. This has helped them to do well in this market.
computer software / processing
BUY
Enghouse Systems
They buy smaller software companies. It sold off hard, now trading at 12x cash flow. They have a lot of cash, so they can buy shares or companies. They have many levers to create value. Buy now, during weakness.
computer software / processing
PAST TOP PICK
Enghouse Systems
(A Top Pick Nov 12/21, Down 47%) He missed on the timing. War chest of cash, multiples have come back to a point where management might start making acquisitions again. Good time to buy. One of those companies with a great balance sheet that will make it through the storm.
computer software / processing
BUY
Enghouse Systems

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. History of profitable acquisitions. Strong net profit margins. Premium valuation justified by macro tailwinds. History of increased dividends. Unlock Premium - Try 5i Free

computer software / processing
WAIT
Enghouse Systems
Great record of tuck-in M&As. Good company, but wait. A good one to start looking at seriously during the coming recession.
computer software / processing
PAST TOP PICK
Enghouse Systems
(A Top Pick Oct 12/21, Down 39%) Video conferencing product sales have moderated. Sitting on cash. Sentiment changed dramatically. Very well run, attractive valuation, free cashflow yield around 7%. He'd buy today. Have to be patient. Well positioned for strong rebound.
computer software / processing
HOLD
Enghouse Systems

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Recent financial weakness. Strong liquidity and low debt levels. Facing headwinds due to surged competition. High cash balance and acquisitive growth. Unlock Premium - Try 5i Free

computer software / processing
BUY
Enghouse Systems
Growth by acquisition. Did well in the era of cheap capital. With rising rates, acquisitions are more expensive. CEO has a good track record. Not a dog, it's just had a valuation correction. Good business model for safe and steady growth over time.
computer software / processing
BUY ON WEAKNESS
Enghouse Systems
Ecosystem that business is built in supported by M&A roll up model. Fundamentally, company has grown earnings meaningfully. Management is excellent. Waiting for share price to fall further before buying. Quality company that has been hit by market selloff.
computer software / processing
BUY
Enghouse Systems
Debated making a Top Pick today. A very good company, diversified. Recent quarter was weaker, more competitive pressure, acquisitions stonewalled. Sentiment has never been more negative. 10% free cashflow yield, over 200M on balance sheet. Tremendous value. Decent competitive position. He'd buy today.
computer software / processing
BUY ON WEAKNESS
Enghouse Systems
Growth by M&A software company - affected by higher interest rates. Believes company stock is expensive at the moment. Waiting for price to fall before buying.
computer software / processing
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Enghouse Systems(ENGH-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 13

Stockchase rating for Enghouse Systems is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Enghouse Systems(ENGH-T) Frequently Asked Questions

What is Enghouse Systems stock symbol?

Enghouse Systems is a Canadian stock, trading under the symbol ENGH-T on the Toronto Stock Exchange (ENGH-CT). It is usually referred to as TSX:ENGH or ENGH-T

Is Enghouse Systems a buy or a sell?

In the last year, 13 stock analysts published opinions about ENGH-T. 10 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Enghouse Systems.

Is Enghouse Systems a good investment or a top pick?

Enghouse Systems was recommended as a Top Pick by on . Read the latest stock experts ratings for Enghouse Systems.

Why is Enghouse Systems stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Enghouse Systems worth watching?

13 stock analysts on Stockchase covered Enghouse Systems In the last year. It is a trending stock that is worth watching.

What is Enghouse Systems stock price?

On 2023-05-30, Enghouse Systems (ENGH-T) stock closed at a price of $37.59.