Added to YB: 2026-03-27
Pitch date: 2026-03-25
ENGH.TO [neutral]
Enghouse Systems Limited
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 877.4M
Pitch Price
N/A
Price Target
N/A
Dividend
7.70%
EV/EBITDA
5.58
P/E
12.78
EV/Sales
1.27
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)