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Weekly 52-Week Low (or 52-Week High): CU-T, OLA-T, CP-T, DND-T and More 52-Week Highs and Lows (Mar 26-Apr 01)Stocks fade to end week, Bitcoin climbsMarkets slide on job numbersThis summary was created by AI, based on 13 opinions in the last 12 months.
Enghouse Systems (ENGH-T) is viewed as a mini-version of Constellation Software but has not yet achieved the same level of scalability. The company has a strong emphasis on strategic acquisitions and is recognized for its solid margins and increasing dividend, which is currently around 4.5%. Although recent earnings reports have shown some disappointing results with weak organic growth, experts appreciate the firm’s strong balance sheet and the potential for value realization, especially due to its debt-free status and substantial free cash flow. There is a mix of optimism and frustration among analysts regarding the company's business model transformation towards SaaS and the potential impacts of AI on their operating margins. Despite recent volatility, many experts believe that ENGH is worth adding to portfolios at current levels given its undervalued nature and good insider ownership.
All his past picks on this date were small-caps and chosen, based on him expecting US interest rates to fall. All were turnaround plays. He used dollar-cost averaging. Fading interest in small-caps now, but he still likes ENGH. They are a serial buyer of private companies at good prices. Margins are rising so are increasing the dividend to 4.5%. But they're not large nor liquid. Is adding at these levels.
Small caps get whacked when interest rates rise. If investment-grade companies borrow at 6%, small caps borrow at 10%. Russell 2000 rallied after the election, and has fallen ~8% in December. ENGH has no debt. Strong FCF, dividend grows 15-20% every year.
Q4 earnings were a bit light, so stock's fallen. They also made 2 acquisitions in the quarter. With small caps, you have to be patient. Yield is 3.87%, almost unheard of for a small-cap stock. Switching business model to SaaS, which should improve margins over time and you'll eventually get increased profitability. Stock's at a new 52-week low, and he's buying.
EPS of 37c beat estimates of 35.7c. Revenue of $130.5M slightly beat estimates of $129.7M. EBITDA of $37.7M beat estimates by 4.6%. Revenue rose 18%. EBITDA rose 13%. Recurring revenue rose 22.8%. Net income rosr 17%. Seachange is being integrated well. Net cash is $245M. Nothing too extraordinary here, but a beat and decent overall growth. Earnings are expected to rise 13% in 2025.
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Likes it, especially for the long term. He owns it in a few separately managed accounts. Well run, financially disciplined. Cleaned up debt. Has $200M in cash. Focus is like a mini-CSU, but doesn't have the scale yet. 40 global acquisitions over its history. 12-month price target of $36.50.
Pick it up in thirds here around $30, $28, and $26.50.
Shares have fallen since the pandemic, but they've re-created themselves and changed their business model. Like MSFT, they stopped selling software and license it through subscriptions. So operating margins are starting to rise and they just raised the dividend by 18%. Also, they have strong free cash flows and the dividend is growing from 3.5%, rare for a smallcap.
(Analysts’ price target is $38.00)They reported a beat last Thursday. They're turning their software business into the monthly subscription model like Microsoft's. Margins will be smaller, but incremental revenues will be more regular and less lumpy. Earnings were good. Dividend rises 10% annually. He holds it in TFSAs and just made a major purchase.
ENGH recorded EPS of $0.45 in Q4, beating analysts revenue expectations of $0.42. Revenue came in at $123.1M, displaying year-over-year growth of 13.9% but missed estimates of $125M. Recurring revenue grew 35%. Cash from operations was decent at $28.3M. Cash was strong at $240.4M while total debt was only $12.4M, but the company stated that none of the debt was external. Net income was $25.1M but decreased from the prior year’s total at $36.9M. This was a decent quarter for ENGH as the company shifts its focus to expanding its recurring SaaS revenue base.
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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
In the last year, 12 stock analysts published opinions about ENGH-T. 6 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Enghouse Systems.
Enghouse Systems was recommended as a Top Pick by on . Read the latest stock experts ratings for Enghouse Systems.
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.
12 stock analysts on Stockchase covered Enghouse Systems In the last year. It is a trending stock that is worth watching.
On 2025-04-11, Enghouse Systems (ENGH-T) stock closed at a price of $23.9.
A mini-CSU, because they have built by strategic acquisition well. It hasn't excelled like CSU, because they haven't scaled their business yet. He targets $36.50.