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

BUY

It's a mini-Constellation Software. ENG is a good company, well-run, and the stock has enjoyed a great rise. Smart managers make accretive acquisitions.

BUY

We've seen upside this year, with the stock up 30%. A software company that works in telecom and utilities. They chug along and do little acquisition. A very easy business. Good stock performance that should continue.

TOP PICK

A grow by acquisition company that offers customer integration software and services. 1% yield with 16% increase in sales. Their return on equity is good, with a forecast to grow cash flow per share by 57%. There is a 21% chance of upside. (Analysts’ price target is $44.90)

BUY

Impressed with last quarter and their acquisition. Turned it around. Created a lot of value for shareholders. Favours Descartes Systems, but still worthy of holding if you want to own one of the consolidators. (Analysts’ price target is $45.00)

TOP PICK

A software company that provides software for utilities and telecommunications. They are also in the video equipment business too. It's a steady income stock so it is protection against market downturn. It has performed much better than the market.

DON'T BUY

Based out of Markham, they grow by acquisition. She does not own it. They prefer a more balanced organic growth model for the tech space. It is priced fairly highly right now.

WEAK BUY

It's been pricey and gone sideways. Earnings have grown and recently the valuation has become more reasonable. They acquire well and generate good free cash flow. He will watch this closer. A quality company.

COMMENT

He admires the CEO/founder, an astute buyer of tech companies. But the ENGH valuation is high, reflecting recent acquisitions. If the buying pauses, the multiple may shrink and the stock may go sideways. It depends on his acquisitions.

HOLD

He has owned them in the past, but not now. His stock selection method does not select it, because the coming earnings quarter is negative. He would wait until after the next earnings in September. Earnings are up 8%. Payout ratio is only 21%. PE is relatively high at 23 times, but is in line with growth. A good long term hold. Yield 1.3%

WEAK BUY

He likes their strong 20% ROE and metrics. But earnings metric isn't cheap. ENG could be consolidated. Has decen't price momentum and a good valuation.

COMMENT

A valuation call, quite expensive. Growth by acquisition story similar to OpenText and Constellation Software. CEO is a big shareholder and has a very good track record. Nothing wrong here, he just doesn't like the valuation. Prefers OpenText, but they've run substantially this year. If you are looking for a value option in a growth by acquisition story, that is probably the one.

WEAK BUY

Really good company. A software consolidator. Likes CGI and Constellation Software a bit better. Organic growth is quite reasonable. Valuation reasonable. Trading at a discount. Buy it to compound capital over the long term. Look elsewhere for dividend income. (Analysts’ price target is $43.00)

DON'T BUY

He liked it in the past. He prefers Descartes. Organic growth will be challenging and they've had some misses. The valuation has declined, but he needs to see more organic growth to get excited in this. Careful here.

COMMENT

They supply Canadian software to phone call centres. His owns Open Text and Shopify in this space instead.

HOLD

Software company. Has it in their TFSAs, because you get the full amount of the dividend, no withholding tax. Trading cheaply. Were dinged for not doing enough acquisitions, but he doesn't listen to the analysts. Dividend growth 10-15% range.

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Enghouse Systems (ENGH.TO)