Want to see TSE:ENGH full AI Analyst Report?
Top Page
Enghouse Systems
(TSX:ENGH)
Select Model
Select Model
Rating:76Outperform
Price Target:
C$18.50
▲(7.93% Upside)
Action:Reiterated
Date:09/12/26
The score is primarily supported by strong financial stability (very low leverage, sizeable cash) and shareholder-friendly valuation (low-to-moderate P/E and ~7.37% dividend yield). Offsetting these positives are weak technical momentum (negative MACD, low RSI/stochastic) and a mixed operating outlook from the earnings call, where profitability improved but demand, churn, and year-over-year revenue pressure remain key risks.
Positive Factors
Recurring revenue base
A recurring revenue base near 70% provides visibility and supports repeat renewals, maintenance, and subscription cash flows. This installed-base model can reduce dependence on new sales, reinforce customer relationships, and provide a durable foundation for investment and operating planning.
Negative Factors
Declining revenue trend
Year-over-year revenue contraction indicates that the company is not yet converting its installed base and product portfolio into overall growth. Persistent top-line weakness can limit operating leverage, reduce reinvestment capacity, and make future margin improvement increasingly dependent on cost actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue base
A recurring revenue base near 70% provides visibility and supports repeat renewals, maintenance, and subscription cash flows. This installed-base model can reduce dependence on new sales, reinforce customer relationships, and provide a durable foundation for investment and operating planning.
Read all positive factors
Enghouse Systems (ENGH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$892.60M
Dividend Yield7.37%
Average Volume (3M)154.49K
Price to Earnings (P/E)12.9
Beta (1Y)0.45
Revenue Growth-4.73%
EPS Growth-5.61%
CountryCA
Employees1,933
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.28
Shares Outstanding53,900,960
10 Day Avg. Volume237,790
30 Day Avg. Volume154,486
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$18.00Price Target Upside5.02% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.27
Revenue Forecast (FY)C$470.82M
Enghouse Systems Business Overview & Revenue Model
Company Description
Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide. It operates through Interactive Management Group and Asset Management Group segments. The Interactive Management Group segment provides con...
How the Company Makes Money
Enghouse makes money by selling and supporting enterprise software across its product portfolio, with revenue generally coming from (1) software licenses and subscriptions and (2) ongoing services and support. License/subscription revenue is gener...
Enghouse Systems Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Neutral
The call was balanced. Enghouse reported sequential revenue growth, stronger EBITDA and segment profits, substantial cash generation, no external debt, and continued shareholder returns. These positives were offset by revenue below the prior-year level, cautious demand, ongoing churn, declines at Lifesize and Qumu, difficult contact center and telecommunications markets, limited AI monetization, no completed acquisitions, and management's view that mid-20% EBITDA margins are more realistic than a return to the high 20s.Positive Updates
Sequential Revenue Improvement
Q3 revenue was CAD 117.6 million, up from CAD 114.3 million in Q2, an increase of approximately 2.9%. The sequential improvement was driven by stronger software sales, favorable foreign exchange, and the timing of certain transactions.
Negative Updates
Revenue Below Prior-Year Level
Q3 revenue of CAD 117.6 million declined from CAD 125.6 million in the prior-year period, a decrease of approximately 6.4%, despite the sequential improvement from Q2.
Read all updates
Q3-2026 Updates
Positive
Negative
Sequential Revenue Improvement
Q3 revenue was CAD 117.6 million, up from CAD 114.3 million in Q2, an increase of approximately 2.9%. The sequential improvement was driven by stronger software sales, favorable foreign exchange, and the timing of certain transactions.
Read all positive updates
Company Guidance
Management said it matches costs to revenue, manages to profitability rather than revenue, and views “25% EBITDA level” as more normal, while “mid-20s is more realistic now.” It expects to see “some of the savings this quarter and next quarter” from restructuring, hopes the July action “has done what we need to do,” but “may have to look at some more” depending on the market and revenue. The company’s acquisition discipline remains focused on a “high return on investment, generally at 20% or higher,” while its dividend is “7%” and it implemented “a smaller dividend increase in this year to do buybacks instead.” R&D is “nearly 20% of our revenue,” or “19%,” versus competitors at “12%-13% of revenue,” and management said revenue has “hopefully” stabilized and “can grow, but it may not have.”Enghouse Systems Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 476.43M | 498.88M | 502.50M | 454.02M | 427.58M | 467.18M |
| Gross Profit | 236.99M | 279.64M | 326.92M | 304.02M | 297.49M | 337.55M |
| EBITDA | 125.17M | 129.70M | 150.66M | 136.90M | 143.79M | 163.33M |
| Net Income | 70.29M | 73.67M | 81.33M | 72.25M | 94.50M | 92.79M |
Balance Sheet | ||||||
| Total Assets | 823.38M | 856.82M | 833.49M | 783.67M | 705.00M | 674.62M |
| Cash, Cash Equivalents and Short-Term Investments | 267.81M | 269.09M | 274.73M | 240.36M | 228.05M | 198.83M |
| Total Debt | 8.02M | 11.14M | 11.09M | 12.40M | 19.88M | 25.60M |
| Total Liabilities | 225.28M | 247.35M | 237.69M | 228.34M | 196.83M | 220.31M |
| Stockholders Equity | 598.10M | 609.47M | 595.81M | 555.33M | 508.17M | 454.31M |
Cash Flow | ||||||
| Free Cash Flow | 92.78M | 103.16M | 130.09M | 114.24M | 102.26M | 115.13M |
| Operating Cash Flow | 94.45M | 104.63M | 132.07M | 115.30M | 103.18M | 118.46M |
| Investing Cash Flow | -10.10M | -34.80M | -45.25M | -57.23M | -21.09M | -37.62M |
| Financing Cash Flow | -93.25M | -82.63M | -57.08M | -51.78M | -54.87M | -119.51M |
Enghouse Systems Technical Analysis
Positive
17.14
Price Trends
16.56
Positive
16.52
Positive
17.04
Negative
Market Momentum
-0.19
Positive
49.60
Neutral
24.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ENGH, the sentiment is Positive. The current price of 17.14 is above the 20-day moving average (MA) of 16.74, above the 50-day MA of 16.56, and above the 200-day MA of 17.04, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$892.60M | 12.94 | 11.70% | 7.37% | -4.73% | -5.61% | |
74 Outperform | C$9.01B | 34.52 | 11.71% | ― | 12.43% | 25.58% | |
72 Outperform | C$438.56M | 70.01 | 9.76% | 1.15% | 10.33% | 46.04% | |
71 Outperform | C$4.67B | 39.55 | 20.88% | ― | 15.99% | 252.03% | |
70 Outperform | C$7.75B | 5.10 | 28.29% | 4.77% | 0.54% | 54.92% | |
69 Neutral | C$841.10M | 20.33 | 113.64% | ― | 11.23% | 65.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TSE:ENGH
Enghouse Systems
16.56
-3.06
-15.58%
TSE:OTEX
Open Text
32.00
-17.75
-35.68%
TSE:DSG
The Descartes Systems Group
105.32
-35.96
-25.45%
TSE:KXS
Kinaxis Inc
171.66
-15.34
-8.20%
TSE:TCS
TECSYS Inc. J
30.42
-2.60
-7.87%
TSE:DCBO
Docebo
33.78
-8.25
-19.63%
Enghouse Systems Corporate Events
Financial Disclosures
Enghouse Sets Date for Q3 2026 Results and Investor Call
Neutral
Sep 3, 2026
Enghouse Systems Limited will release its fiscal 2026 third-quarter results after markets close on September 10, 2026. The disclosure timing underscores the company’s efforts to keep investors informed on its operational and financial perfor...
Business Operations and StrategyExecutive/Board Changes
Enghouse Announces CFO Departure and Finance Leadership Transition
Neutral
Aug 26, 2026
Enghouse Systems has announced that long-serving Chief Financial Officer Rob Medved will depart after the release of its third quarter results to pursue another professional opportunity. The Board highlighted his roughly nine-year contribution to ...
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.