Enghouse Systems (TSE:ENGH) Trading 0.2% Higher - Here's Why

Key Points

• Analyst sentiment has weakened: RBC and TD recently cut price targets (from C$22.00 to C$20.00 and C$17.00 respectively), two analysts rate the stock Hold and one rates Sell, leaving a consensus rating of "Reduce" with a C$20.50 consensus price target.
• Modest valuation and recent results: Enghouse has a market cap of C$920.49M and a P/E of 13.40, reported C$0.32 EPS on C$120.1M revenue last quarter, and sell-side forecasts about C$1.70 EPS for the current year.
• High yield but high payout ratio: The company pays a quarterly $0.30 dividend (C$1.20 annualized) for a 7.1% dividend yield

Enghouse Systems Limited (TSE:ENGH - Get Free Report)'s share price rose 0.2% during trading on Monday . The stock traded as high as C$16.95 and last traded at C$16.89. Approximately 187,710 shares were traded during trading, a decline of 38% from the average daily volume of 304,240 shares. The stock had previously closed at C$16.85.

Wall Street Analysts Forecast Growth

ENGH has been the subject of a number of analyst reports. Royal Bank Of Canada dropped their price target on shares of Enghouse Systems from C$22.00 to C$20.00 and set a "sector perform" rating on the stock in a research report on Monday, March 16th. TD Securities lowered their target price on shares of Enghouse Systems from C$22.00 to C$17.00 and set a "hold" rating on the stock in a research note on Monday, March 16th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus price target of C$20.50.

Enghouse Systems Trading Up 0.2%

The company has a market capitalization of C$920.49 million, a P/E ratio of 13.40, a P/E/G ratio of -4.19 and a beta of -0.04. The company has a 50-day simple moving average of C$16.94 and a 200 day simple moving average of C$18.86. The company has a debt-to-equity ratio of 1.75, a quick ratio of 1.84 and a current ratio of 1.68.

Enghouse Systems (TSE:ENGH - Get Free Report) last posted its quarterly earnings data on Thursday, March 12th. The company reported C$0.32 earnings per share for the quarter. Enghouse Systems had a return on equity of 11.48% and a net margin of 13.99%.The company had revenue of C$120.10 million during the quarter. Sell-side analysts expect that Enghouse Systems Limited will post 1.6991295 earnings per share for the current year.

Enghouse Systems Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 27th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 7.1%. The ex-dividend date was Friday, February 13th. Enghouse Systems's dividend payout ratio (DPR) is presently 92.06%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.