Enghouse Systems (TSE:ENGH)
TSX:ENGH
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Enghouse Systems
(TSX:ENGH)
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Rating:67Neutral
Price Target:
C$18.50
▲(11.31% Upside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by strong financial quality (low leverage, solid cash conversion) and supportive valuation via a high dividend yield. This is tempered by weak technical trend (price below major moving averages) and fundamental growth headwinds highlighted by the recent revenue decline and segment pressure despite improving cost efficiency.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a sizable equity base give Enghouse durable financial flexibility. This supports continued dividend payments, opportunistic acquisitions, share buybacks, and resilience through cyclical weakness without raising external debt, preserving strategic optionality.
Negative Factors
Interactive Management Group Weakness
Sustained softness in IMG amid a transition to SaaS and maintenance churn undermines a core revenue stream. If migration economics or customer adoption lag, IMG contraction can pressure overall growth, margin mix, and the ability to offset lower upfront license sales over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a sizable equity base give Enghouse durable financial flexibility. This supports continued dividend payments, opportunistic acquisitions, share buybacks, and resilience through cyclical weakness without raising external debt, preserving strategic optionality.
Read all positive factors
Enghouse Systems (ENGH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$907.95M
Dividend Yield5.69%
Average Volume (3M)151.38K
Price to Earnings (P/E)14.6
Beta (1Y)0.36
Revenue Growth-0.72%
EPS Growth-9.27%
CountryCA
Employees1,932
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.32
Shares Outstanding54,498,610
10 Day Avg. Volume110,574
30 Day Avg. Volume151,377
Financial Highlights & Ratios
PEG Ratio-1.76
Price to Book (P/B)1.88
Price to Sales (P/S)2.30
P/FCF Ratio11.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$18.58Price Target Upside11.77% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.41
Revenue Forecast (FY)C$493.23M
Enghouse Systems Business Overview & Revenue Model
Company Description
Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group. The Interactive Management Group segment provide...
How the Company Makes Money
Enghouse makes money mainly by selling and supporting enterprise software across its two operating segments. Key revenue streams typically include: (1) software license revenue (upfront or term-based) for its customer interaction/contact center an...
Enghouse Systems Earnings Call Summary
Earnings Call Date:Dec 15, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
Enghouse demonstrated strong financial stability and growth in its Asset Management Group despite a slight decline in overall revenue. The company successfully managed costs, leading to improved profitability, and expanded its market presence through strategic acquisitions. Challenges include a revenue decline in the Interactive Management Group and difficulties for customers in implementing AI effectively.Positive Updates
Strong Financial Stability
Enghouse ended the year with $269.1 million in cash and no external debt, maintaining financial flexibility and stability in challenging markets.
Negative Updates
Slight Revenue Decline
Q4 revenue was $124.5 million, slightly down from $125.7 million in Q4 last year. Full-year revenue totaled $498.9 million, down from $502.5 million in fiscal '24.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Financial Stability
Enghouse ended the year with $269.1 million in cash and no external debt, maintaining financial flexibility and stability in challenging markets.
Read all positive updates
Company Guidance
In the conference call, Enghouse provided detailed guidance on its financial performance for the fourth quarter and full fiscal year 2025. The company reported a Q4 revenue of $124.5 million, slightly down from $125.7 million the previous year, and a full-year revenue of $498.9 million, compared to $502.5 million in fiscal 2024. Recurring revenue, comprising SaaS and maintenance streams, accounted for over 69% of total revenue, offering stability amidst market fluctuations. Adjusted EBITDA for Q4 was $33.7 million, with a margin of 27%, while the full year's adjusted EBITDA was $127.6 million, representing a 25.6% margin. Net income for the quarter was $21.1 million, and $73.7 million for the year, translating to $1.34 per diluted share. The company remained financially robust, closing the year with $269.1 million in cash and no external debt. The Asset Management Group (AMG) showed notable growth, with Q4 revenue increasing by 9.3% to $55.7 million. For the year, AMG revenue rose to $213.1 million, driven by acquisitions of Margento and Trafi. The Interactive Management Group (IMG) faced a decline, with Q4 revenue at $68.8 million and full-year revenue at $285.8 million, reflecting a strategic transition to SaaS-based licensing models. Enghouse highlighted efficiency gains from restructuring and cost-cutting initiatives, which began to impact financials positively in Q4, with expectations for further improvements in fiscal 2026. Additionally, the company acquired Sixbell's Telecommunications division post-year-end, expanding its Latin American market presence. Enghouse returned $61.8 million to shareholders through dividends, marking a 16% increase over the previous year, and repurchased $14.7 million of its shares. The Board approved a quarterly dividend of $0.30 per share, reflecting confidence in the company's long-term prospects.Enghouse Systems Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 494.98M | 498.88M | 502.50M | 454.02M | 427.58M | 467.18M |
| Gross Profit | 266.89M | 279.64M | 326.92M | 304.02M | 297.49M | 337.55M |
| EBITDA | 122.92M | 129.70M | 150.66M | 136.90M | 143.79M | 163.33M |
| Net Income | 69.26M | 73.67M | 81.33M | 72.25M | 94.50M | 92.79M |
Balance Sheet | ||||||
| Total Assets | 856.22M | 856.82M | 833.49M | 783.67M | 705.00M | 674.62M |
| Cash, Cash Equivalents and Short-Term Investments | 260.21M | 269.09M | 274.73M | 240.36M | 228.05M | 198.83M |
| Total Debt | 10.50M | 11.14M | 11.09M | 12.40M | 19.88M | 25.60M |
| Total Liabilities | 256.38M | 247.35M | 237.69M | 228.34M | 196.83M | 220.31M |
| Stockholders Equity | 599.84M | 609.47M | 595.81M | 555.33M | 508.17M | 454.31M |
Cash Flow | ||||||
| Free Cash Flow | 102.28M | 103.16M | 130.09M | 114.24M | 102.26M | 115.13M |
| Operating Cash Flow | 104.18M | 104.63M | 132.07M | 115.30M | 103.18M | 118.46M |
| Investing Cash Flow | -33.46M | -34.80M | -45.25M | -57.23M | -21.09M | -37.62M |
| Financing Cash Flow | -83.97M | -82.63M | -57.08M | -51.78M | -54.87M | -119.51M |
Enghouse Systems Technical Analysis
Neutral
16.62
Price Trends
17.14
Negative
18.42
Negative
19.80
Negative
Market Momentum
-0.18
Negative
48.70
Neutral
73.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENGH, the sentiment is Neutral. The current price of 16.62 is above the 20-day moving average (MA) of 16.33, below the 50-day MA of 17.14, and below the 200-day MA of 19.80, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 73.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ENGH.
Enghouse Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$8.01B | 38.38 | 10.76% | ― | 14.55% | 15.55% | |
74 Outperform | C$670.79M | 16.69 | 73.40% | ― | 16.25% | 31.71% | |
70 Outperform | C$437.87M | 55.29 | 8.57% | 1.07% | 7.00% | 110.62% | |
69 Neutral | C$3.90B | 49.33 | 16.46% | ― | 15.11% | 75.40% | |
67 Neutral | C$907.95M | 14.62 | 12.17% | 5.69% | -0.72% | -9.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | C$7.48B | 12.20 | 10.88% | 3.27% | -5.01% | 13.21% |
* Technology Sector Average
TSE:ENGH
Enghouse Systems
16.66
-6.73
-28.79%
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Enghouse Systems Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Enghouse Shareholders Re-Elect Full Slate of Directors at Virtual AGM
Positive
Mar 16, 2026
Enghouse Systems reported the results of director elections from its March 12, 2026 virtual annual shareholders’ meeting, confirming that all nominees were elected to the board. Shareholder support levels varied across directors, with most r...
Financial DisclosuresShareholder Meetings
Enghouse Schedules Q1 2026 Results Release and Virtual AGM
Neutral
Mar 6, 2026
Enghouse Systems plans to release its first quarter fiscal 2026 financial results after markets close on March 12, 2026, followed by a conference call the next morning to discuss the performance. The results call will also be webcast and archived ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.