Enghouse Systems (ENGH) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 5.13%
• Average Volume (3M): 158.41K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.50
• Revenue Growth: 5.12%
• EPS Growth: -2.77%
• Country: CA
• Employees: 1,932
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 55,155,490
• 10 Day Avg. Volume: 136,593
• 30 Day Avg. Volume: 158,405
• PEG Ratio: 9.90
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.75
• Price Target Upside: 9.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: C$25.00 ▲(6.66%Upside)

Enghouse Systems' overall score reflects its strong financial position and attractive valuation, tempered by bearish technical signals and challenges highlighted in the earnings call. Positive corporate events also contribute to the score, indicating potential for long-term growth despite current market pressures.

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 provides customer interaction software and services to facilitate remote work, enhance customer service, increase efficiency, and manage customer communications across various types of interactions, including voice, email, web chats, text, and video. Its technologies include contact center, video collaboration, interactive voice response, outbound dialers, attendant console, agent performance optimization, business intelligence, and analytics that deployed in private cloud, multi-tenant cloud, or on-premise environments. This segment serves insurance companies, telecoms, banks, business process service providers, as well as technology and health care companies. The Asset Management Group segment offers a portfolio of software and services to cable operators, network telecommunication providers, media, transit, defense, and public safety companies. This segment's products include network infrastructure, operations support systems, and business support systems, as well as video and cloud TV solutions. This segment also provides fleet routing, dispatch, scheduling, transit e-ticketing and automated fare collection, communications, and emergency control center solutions for the transportation, government, first responders, distribution, and security sectors. Enghouse Systems Limited was incorporated in 1984 and is headquartered in Markham, Canada.

How the Company Makes Money

Enghouse Systems generates revenue through the sale of software licenses, recurring subscription fees, and professional services. Key revenue streams include its contact center and video collaboration solutions, which are utilized by businesses to manage customer interactions and facilitate remote communication. The company also earns from its transportation solutions, which are used by transit operators for scheduling, dispatch, and passenger information systems. Enghouse's strategic acquisitions of complementary technology companies further bolster its product offerings and market reach, contributing to sustained revenue growth. Additionally, the company benefits from long-term customer contracts and partnerships with telecommunications and service providers, enhancing its recurring revenue base.

Enghouse Systems Financial Statement Overview

Summary

Enghouse Systems exhibits strong financial health with solid profitability margins, a robust balance sheet, and efficient cash flow generation. Despite modest revenue growth, the company maintains a conservative leverage position and strong equity.

Income Statement

Enghouse Systems shows strong profitability with a gross profit margin of 62.1% and a net profit margin of 16.8% in the TTM (Trailing-Twelve-Months). The company has maintained stable EBIT and EBITDA margins of 22.3% and 29.8% respectively. Although revenue growth is modest at 0.7%, the company has demonstrated consistent profitability over the years.

Balance Sheet

The balance sheet of Enghouse Systems is solid, with a low debt-to-equity ratio of 0.019, indicating minimal leverage. Return on equity stands at a healthy 14.0%, and the equity ratio is robust at 70.2%, showcasing financial stability and a strong equity base.

Cash Flow

Enghouse Systems exhibits a strong cash flow position, with a slight growth in free cash flow by 1.0%. The operating cash flow to net income ratio is 1.57, highlighting efficient cash generation relative to net income. The free cash flow to net income ratio stands at 1.54, reflecting strong cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	506.02M	502.50M	454.02M	427.58M	467.18M	503.78M
Gross Profit	314.28M	326.92M	304.02M	297.49M	337.55M	358.60M
EBITDA	150.83M	150.66M	136.90M	143.79M	163.33M	180.67M
Net Income	85.10M	81.33M	72.25M	94.50M	92.79M	98.59M
Balance Sheet
Total Assets	865.39M	833.49M	783.67M	705.00M	674.62M	763.65M
Cash, Cash Equivalents and Short-Term Investments	271.09M	274.73M	240.36M	228.05M	198.83M	251.79M
Total Debt	11.50M	11.09M	12.40M	19.88M	25.60M	42.16M
Total Liabilities	258.29M	237.69M	228.34M	196.83M	220.31M	267.32M
Stockholders Equity	607.10M	595.81M	555.33M	508.17M	454.31M	496.32M
Cash Flow
Free Cash Flow	131.40M	130.09M	114.24M	102.26M	115.13M	165.60M
Operating Cash Flow	133.42M	132.07M	115.30M	103.18M	118.46M	168.15M
Investing Cash Flow	-52.05M	-45.25M	-57.23M	-21.09M	-37.62M	-45.07M
Financing Cash Flow	-69.35M	-57.08M	-51.78M	-54.87M	-119.51M	-22.32M

Enghouse Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENGH, the sentiment is Negative. The current price of 23.44 is below the 20-day moving average (MA) of 23.52, below the 50-day MA of 24.81, and below the 200-day MA of 27.08, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 69.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ENGH.

Enghouse Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENGH	73 Outperform	$1.29B	16.45	13.26%	5.13%	5.12%	-2.77%
Sector *	63 Neutral	$33.24B	5.92	-11.55%	1.90%	5.54%	-20.14%
OTEX		$7.55B	12.08	15.87%	3.55%	―	―
KXS	74 Outperform	C$5.74B	411.38	2.32%	―	15.14%	-31.45%
TCS	71 Outperform	C$573.42M	128.06	6.39%	0.88%	2.61%	46.26%
LSPD	63 Neutral	C$2.20B	―	-33.64%	―	23.95%	39.68%
DCBO		$856.89M	37.65	41.12%	―	―	―

Enghouse Systems Corporate Events

Enghouse Networks Powers JCI’s Neo-Carrier Strategy with Core Messaging Solutions

Enghouse Networks has been selected by Japan Communications Inc. (JCI) to provide its core messaging and security solutions as part of JCI’s Neo-Carrier Strategy. This initiative aims to launch a new mobile service that operates independently from traditional mobile network constraints by integrating voice, SMS, and data connectivity directly with MNO infrastructure. The deployment of Enghouse Networks’ SMS Core System, which includes SMSC, SMS Firewall, and Voicemail, marks a significant milestone for JCI. This system offers high performance, scalability, and compliance with open standards, positioning JCI for future advancements in mobile messaging services.

The most recent analyst rating on (TSE:ENGH) stock is a Buy with a C$43.00 price target. To see the full list of analyst forecasts on Enghouse Systems stock, see the TSE:ENGH Stock Forecast page.

Enghouse Systems Reports Q2 2025 Results Amid Strategic Acquisitions

Enghouse Systems Limited reported a slight decrease in revenue for the second quarter of 2025, with a 0.8% drop compared to the same period last year. Despite the decline, the company continues to prioritize recurring revenue and maintain a strong cash position, which supports its acquisition strategy. The recent acquisitions of Margento and Trafi are expected to bolster Enghouse’s transportation offerings and align with its long-term growth vision. The company remains financially resilient with no external debt and continues to pay dividends, reflecting its commitment to shareholder returns.

The most recent analyst rating on (TSE:ENGH) stock is a Buy with a C$43.00 price target. To see the full list of analyst forecasts on Enghouse Systems stock, see the TSE:ENGH Stock Forecast page.

Enghouse and NKS110 IKS Enhance Norway’s Emergency Response System

Enghouse Transportation & Public Safety, in collaboration with NKS110 IKS, has successfully implemented the Enghouse LocusEmergency OHV (LEO) system across all 110 emergency dispatch centers in Norway. This deployment enhances public safety by providing advanced resource management tools that improve situational awareness and response times. The initiative strengthens Norway’s emergency infrastructure, ensuring readiness for current and future challenges, and reflects Enghouse’s commitment to delivering cutting-edge technology for public safety organizations.

Enghouse Systems Acquires Trafi to Boost Mobility-as-a-Service Offerings

Enghouse Systems Limited has acquired Trafi Ltd., a leading provider of Mobility-as-a-Service (MaaS) solutions, to enhance its transportation mobility solutions portfolio. This acquisition allows Enghouse to integrate Trafi’s scalable MaaS platform, which unifies various transport modes into a seamless user experience, thereby expanding its reach and capabilities in the transit market. The move is expected to accelerate the delivery of integrated mobility experiences globally, benefiting cities and public transport authorities by offering advanced features like real-time data mapping and in-app ticketing.