Enghouse Systems (TSE:ENGH) Reaches New 52-Week Low - Here's Why

Key Points

• Enghouse Systems hit a new 52-week low of C$15.35 (last C$15.40) on Friday with a volume of 328,247 shares, down from a prior close of C$17.76.
• Analysts have trimmed price targets (RBC C$24→C$22, UBS C$22→C$20) and MarketBeat shows an average rating of "Reduce" with an average target of C$22.33.
• The stock offers a high dividend yield of 7.7% (C$1.20 annualized) but carries an 83.6% payout ratio; valuation metrics include a PE of 11.66 and a market cap of about C$854 million.

Enghouse Systems Limited (TSE:ENGH - Get Free Report) shares hit a new 52-week low on Friday . The company traded as low as C$15.35 and last traded at C$15.40, with a volume of 328247 shares. The stock had previously closed at C$17.76.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Royal Bank Of Canada reduced their price target on shares of Enghouse Systems from C$24.00 to C$22.00 and set a "sector perform" rating for the company in a research report on Wednesday, December 17th. UBS Group reduced their target price on Enghouse Systems from C$22.00 to C$20.00 in a report on Monday, December 8th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Enghouse Systems currently has an average rating of "Reduce" and an average target price of C$22.33.

Enghouse Systems Price Performance

The stock has a market capitalization of C$854.21 million, a PE ratio of 11.66, a PEG ratio of -4.19 and a beta of -0.09. The firm's fifty day moving average price is C$18.42 and its two-hundred day moving average price is C$19.98. The company has a quick ratio of 1.84, a current ratio of 1.71 and a debt-to-equity ratio of 1.83.

Enghouse Systems (TSE:ENGH - Get Free Report) last announced its earnings results on Thursday, March 12th. The company reported C$0.32 earnings per share for the quarter. The business had revenue of C$120.10 million during the quarter. Enghouse Systems had a net margin of 14.77% and a return on equity of 12.17%. On average, equities analysts predict that Enghouse Systems Limited will post 1.6991295 earnings per share for the current year.

Enghouse Systems Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 27th were given a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 7.7%. The ex-dividend date of this dividend was Friday, February 13th. Enghouse Systems's dividend payout ratio (DPR) is presently 83.58%.

About Enghouse Systems

Enghouse Systems Limited is a Canadian publicly traded company TSX: ENGH that provides mission-critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications, networks, IPTV, public safety and transit. The Company's two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded through net cash provided by operating activities as the Company has no external debt financing.

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