Enghouse Systems (TSE:ENGH) Shares Climb 0.1% - Should You Buy?

Key Points

• Enghouse Systems shares rose 0.1% to C$16.76, with trading volume about 20% above the average session volume.
• Analysts remain cautious: four analysts rate the stock “Hold,” while recent price-target changes produced a consensus target of C$17.80.
• The company reported quarterly EPS of C$0.28 on C$117.58 million in revenue and pays an annualized dividend of C$1.24 per share, yielding approximately 7.4%; however, its payout ratio is high at 93.8%.

Enghouse Systems Limited (TSE:ENGH - Get Free Report)'s share price shot up 0.1% during trading on Monday. The company traded as high as C$16.95 and last traded at C$16.76. Approximately 295,662 shares traded hands during mid-day trading, an increase of 20% from the average session volume of 245,422 shares. The stock had previously closed at C$16.75.

Analyst Ratings Changes

A number of analysts recently weighed in on ENGH shares. Canadian Imperial Bank of Commerce decreased their price target on shares of Enghouse Systems from C$18.00 to C$17.00 and set a "neutral" rating for the company in a research note on Thursday, June 11th. Royal Bank Of Canada dropped their price objective on shares of Enghouse Systems from C$20.00 to C$18.00 and set a "sector perform" rating on the stock in a research note on Thursday, June 11th. Finally, TD upped their target price on shares of Enghouse Systems from C$16.00 to C$17.00 and gave the company a "hold" rating in a report on Monday, September 14th. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of C$17.80.

Enghouse Systems Stock Up 0.1%

The firm has a 50 day simple moving average of C$16.95 and a two-hundred day simple moving average of C$16.77. The company has a market capitalization of C$903.38 million, a PE ratio of 12.99, a P/E/G ratio of -4.19 and a beta of 0.19. The company has a current ratio of 1.77, a quick ratio of 1.84 and a debt-to-equity ratio of 1.34.

Enghouse Systems (TSE:ENGH - Get Free Report) last released its quarterly earnings results on Thursday, September 10th. The company reported C$0.28 EPS for the quarter. Enghouse Systems had a return on equity of 11.70% and a net margin of 14.75%.The business had revenue of C$117.58 million during the quarter. Research analysts expect that Enghouse Systems Limited will post 1.6991295 EPS for the current year.

Enghouse Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 28th were given a dividend of $0.31 per share. The ex-dividend date was Friday, August 14th. This represents a $1.24 dividend on an annualized basis and a yield of 7.4%. Enghouse Systems's dividend payout ratio is presently 93.80%.

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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