Added to YB: 2026-03-27
Pitch date: 2026-03-25
ENGH.TO [neutral]
Enghouse Systems Limited
+11.08%
current return
Author Info
Don Wharton is Executive Chair of SureSwift Capital Victoria. He writes about under-the-radar compounders. Sign up for the newsletter.
Company Info
Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide.
Market Cap
CAD 872.5M
Pitch Price
CAD 16.15
Price Target
N/A
Dividend
7.75%
EV/EBITDA
5.53
P/E
12.71
EV/Sales
1.26
Sector
Software
Category
turnaround
Enghouse Crashes 14% on Earnings
ENGH.TO (earnings): Q1 2026 rev -3.1% YoY (4th consecutive decline), adj EBITDA -5.9%, net income -20.1%. Contact center/comms exposure showing tangible AI pressure vs peers like CSU. SaaS/maintenance churn ongoing. M&A slow as AI due diligence extends; mgmt favors buybacks over deals at current price. Organic growth negative, capital deployment light. Analysts cutting PTs. Valuation at historic lows but sentiment poor until growth/deployment improves.
Read full article (2 min)