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Enghouse Systems (ENGH-T)
TSE:ENGH
37.59
0.28
(0.74%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
$37.290
No
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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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.
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.
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
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
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
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.
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.