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Enghouse Systems Ltd EGHSF


Primary Symbol: T.ENGH

Enghouse Systems Limited provides vertical enterprise software solutions. The Company has two segments: Interactive Management Group (IMG) and Asset Management Group (AMG). The IMG segment specializes in customer interaction software and services. Its products include contact center, video collaboration, video health monitoring, video room systems, interactive voice response, artificial intelligence, outbound dialers, attendant console, agent performance optimization, customer survey, business intelligence and analytics. It also offers video recording, streaming and event enterprise solutions. The segment, through Lifesize, offers video solutions, which enables remote teams to connect with in-person teams. The AMG segment offers a range of products to telecom service providers, utilities, and the oil and gas industry. Its products include network infrastructure and revenue generation solutions. It also offers fleet routing, dispatch, scheduling, transit e-ticketing and others.


TSX:ENGH - Post by User

Comment by GeorgianBayGuyon Mar 12, 2021 2:22pm
306 Views
Post# 32786851

RE:RE:Q1

RE:RE:Q1I also agree with most of the senitiment on this bullboard regarding the Q1 earnings... very much a mixed bag.  Clearly, ENGH has deployed some solid strategies to protect their cash position and their EBITDA in the face of challenging business conditions.

However, I might be more concerned than most on this board regarding the rather dismal top-line growth number.  At just 7%, it missed estimates by a wide margin. Yes, I know that this meagre growth rate could be dismissed due to COVID and normal seasonality effects, however, it is too big of a miss for me to ignore.

At approximately 35X earnings, ENGH is priced for solid, if not aggressive, growth.  Should the market begin to doubt their growth story, the SP will be punished.  I see quite a bit of downside risk should the market decide that something closer to a 30X valuation is in order for this company.  JMHO

-GBG 
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