Enghouse Systems (ENGH.TO) Buy, Sell or Hold

Enghouse Systems (ENGH.TO)

15.63

+0.02 (0.13%)

as of Jun 19, 2026, 8:00:01 pm Market Open.

214 watching

WAIT

Great record of tuck-in M&As. Good company, but wait. A good one to start looking at seriously during the coming recession.

PAST TOP PICK

(A Top Pick Oct 12/21, Down 39%) Video conferencing product sales have moderated. Sitting on cash. Sentiment changed dramatically. Very well run, attractive valuation, free cashflow yield around 7%. He'd buy today. Have to be patient. Well positioned for strong rebound.

HOLD

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Recent financial weakness. Strong liquidity and low debt levels. Facing headwinds due to surged competition. High cash balance and acquisitive growth. Unlock Premium - Try 5i Free

BUY

Growth by acquisition. Did well in the era of cheap capital. With rising rates, acquisitions are more expensive. CEO has a good track record. Not a dog, it's just had a valuation correction. Good business model for safe and steady growth over time.

BUY ON WEAKNESS

Ecosystem that business is built in supported by M&A roll up model. Fundamentally, company has grown earnings meaningfully. Management is excellent. Waiting for share price to fall further before buying. Quality company that has been hit by market selloff.

BUY

Debated making a Top Pick today. A very good company, diversified. Recent quarter was weaker, more competitive pressure, acquisitions stonewalled. Sentiment has never been more negative. 10% free cashflow yield, over 200M on balance sheet. Tremendous value. Decent competitive position. He'd buy today.

BUY ON WEAKNESS

Growth by M&A software company - affected by higher interest rates. Believes company stock is expensive at the moment. Waiting for price to fall before buying.

BUY

Follows it. You can own only so many stocks. He targets $59.50. Similar to Constellation Software--enterprise software solutions. It did well as people worked from home in remote work. Then, they bought a company to do telemedicine. The stock has come down, but a decent runway lies ahead.

WAIT

Tuck-in acquisition story. No growth if no deals. Good story, but entry level is a bit high.

PAST TOP PICK

(A Top Pick Jun 08/21, Down 25%) Disappointing. Boom with pandemic has moderated. Software rollup story, but hasn't been able to find acquisitions. Huge amount of excess cash with more than 200M on balance sheet. Disciplined. Great company. Tons of value today.

HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Insider selling could be part of tax payments and option exercise. Insiders own 22% of the company still. This is worth $400M. The CEO owns $260 alone. The recent sales are probably not a red flag in a material way. Unlock Premium - Try 5i Free

DON'T BUY

Believes capital better deployed in other software business models. Unable to determine long term value of business. Does not own shares.

TOP PICK

Organic growth plus acquisitions. Demand for its video product spiked during Covid. This demand has moderated, so revenue growth has been more challenging. Pandemic also squashed acquisitions, but this year looks better for those. Sitting on excess cash, which gives them optionality. Well positioned for a choppy environment. Inexpensive valuation. Free cashflow yield north of 5%. More of a niche product for call centres, rather than competing with the likes of ZM. Yield is 1.54%. (Analysts’ price target is $60.63)

BUY ON WEAKNESS

A lot of money going into the tech sector has pushed the valuation of the company too high. Growth through acquisition is problematic with over valued tech companies. If tech begins to sell off with interest rate increase, it might create good buying opportunity.

BUY

Valuation makes it cheapest it has been in a long time. Company trying to make acquisitions, but prices high in industry (telecommunications). Earnings are flat. For the time being, happy owning the company.

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Enghouse Systems (ENGH.TO)