Enghouse Systems Limited (ENGH.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+368.1%

CA$84.97

vs CA$18.15 price

Levered DCF

CA$74.87

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.51

Safe zone

Rating

A+

Overall 5 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.53×	20.05×	24.85×	17.82×	32.43×	36.93×	29.52×	34.37×
P/B	1.88×	2.74×	3.24×	3.31×	6.61×	7.33×	5.22×	5.64×
P/S	2.3×	3.25×	3.96×	3.93×	6.43×	7.23×	5.43×	5.76×
EV / EBITDA	6.86×	9.08×	11.49×	10.26×	17.34×	19.03×	16.49×	16.88×
Gross margin	56.1%	65.1%	67.0%	69.6%	72.3%	71.2%	69.2%	69.8%
Operating margin	18.0%	26.6%	26.9%	22.3%	23.8%	24.8%	21.4%	30.1%
Net margin	14.8%	16.2%	15.9%	22.1%	19.9%	19.6%	18.4%	16.8%
Current ratio	1.71×	1.81×	1.77×	2.04×	1.74×	1.73×	1.53×	2.24×
Debt / equity	0.02×	0.02×	0.02×	0.04×	0.06×	0.08×	0×	0×
Interest coverage	149.14×	221.23×	142.32×	115.8×	99.28×	88.46×	1,087.07×	484.72×
Dividend yield	5.4%	3.3%	2.5%	2.3%	3.9%	0.7%	1.0%	0.9%
Payout ratio	83.9%	65.3%	62.0%	40.5%	124.7%	27.3%	30.9%	31.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.1%	13.7%	13.0%	18.6%	20.4%	19.9%	17.6%	16.5%
Return on invested capital	11.3%	17.1%	17.1%	17.1%	18.9%	17.8%	16.2%	20.3%
Return on assets	8.6%	9.8%	9.2%	13.4%	13.8%	12.9%	12.0%	11.7%
Free cash flow yield	9.0%	8.0%	6.3%	6.1%	3.8%	4.5%	3.8%	4.9%
Earnings yield	6.4%	5.0%	4.0%	5.6%	3.1%	2.7%	3.4%	2.9%
Enterprise value	CA$889.8M	CA$1.4B	CA$1.6B	CA$1.5B	CA$2.8B	CA$3.4B	CA$2B	CA$1.8B
Net debt / EBITDA	-1.99×	-1.75×	-1.66×	-1.43×	-1.04×	-1.12×	-1.21×	-1.75×
Cash conversion cycle (days)	-62	-79	-90	-90	-130	-136	-113	-90