Review of Enghouse Systems

NOV 07, 2024 - Enghouse Systems Ltd. (ENGH) is a software communications company that provides services centered around contact centers, video communications, virtual healthcare, telecommunications networks, public safety and the transit market. ENGH has faced some difficulties with returning to its premium valuation and high margin profile days over the past several years, and while it remains profitable and continues to issue dividends, a muted growth outlook is putting pressure on the stock price. EnergDue to its higher number of headwinds relative to tailwinds, we are downgrading the name by one notch to a ‘B-‘.

Download Report

Q: Perhaps am looking for unicorns. I have some money to deploy and I am looking for companies that have the balance sheet to ride out the current situation whether it lasts another two months or >12 months. My basic criteria were those potentially undervalued, dividend over 3%, div growth of at least 5% and a decent payout ratio. Any suggestions appreciated, thanks for your help.

Read Answer Asked by Art on March 28, 2025

Q: Hi Peter,

I would like to get your thoughts on CNR and ENGH. I am long CNR and would like to reduce it and add to my position in ENGH. My views are that I get more growth from ENGH and 4.5% dividend vs. CNR call it a 2.5% dividend. I know they are different businesses but comparing the two companies what provides more growth and income opportunity.

Thanks

Read Answer Asked by Frank on March 17, 2025

Enghouse Systems Limited (ENGH)

Q: Hi Peter, I just started a position in Enghouse. I thought it looked oversold and attractive on free cash flow per share and it’s 4% yield. Also they are beginning to become more acquisitive. Can I get your thoughts on the latest qtr and do you think it is attractive at these levels.

Read Answer Asked by Frank on March 11, 2025