Enghouse Systems Limited
Enghouse Systems Limited Fundamental Analysis
Enghouse Systems Limited (EGHSF) shows strong financial fundamentals with a PE ratio of 13.30, profit margin of 14.77%, and ROE of 12.17%. The company generates $0.5B in annual revenue with strong year-over-year growth of 10.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EGHSF's fundamental strength across five key dimensions:
Efficiency Score
WeakEGHSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEGHSF trades at attractive valuation levels.
Growth Score
ExcellentEGHSF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentEGHSF maintains a strong and stable balance sheet.
Profitability Score
WeakEGHSF struggles to sustain strong margins.
Key Financial Metrics
Is EGHSF Expensive or Cheap?
P/E Ratio
EGHSF trades at 13.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EGHSF's PEG of -4.41 indicates potential undervaluation.
Price to Book
The market values Enghouse Systems Limited at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.84 times EBITDA. This is generally considered low.
How Well Does EGHSF Make Money?
Net Profit Margin
For every $100 in sales, Enghouse Systems Limited keeps $14.77 as profit after all expenses.
Operating Margin
Core operations generate 22.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.17 in profit for every $100 of shareholder equity.
ROA
Enghouse Systems Limited generates $8.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Enghouse Systems Limited produces operating cash flow of $97.50M, showing steady but balanced cash generation.
Free Cash Flow
Enghouse Systems Limited generates strong free cash flow of $96.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.76 in free cash annually.
FCF Yield
EGHSF converts 10.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How EGHSF Stacks Against Its Sector Peers
| Metric | EGHSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.30 | 35.87 | Better (Cheaper) |
| ROE | 12.17% | 1175.00% | Weak |
| Net Margin | 14.77% | -136937.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 4.81 | Neutral |
| ROA | 8.60% | -312685.00% (disorted) | Weak |
EGHSF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Enghouse Systems Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
13.34%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
60.25%
Industry Style: Growth, Innovation, High Beta
High Growth