Enghouse Systems Ltd.
Investment Thesis Enghouse Systems Ltd
Field
Finance & Investment
Stakeholders
Enghouse Systems Ltd.
Goal
Investment Thesis
A Strong Contender in Business Software with High Market Potential
Enghouse Systems Ltd. is a Canadian business software provider focusing on future growth sectors to boost profitability. Enghouse stands out with its high competitive advantages, pricing power, crisis resilience, high sector entry costs, scalable business model, and strong management.
The company’s main strategy is acquiring firms with recurring cash flows to fund further acquisitions. Financially, Enghouse is strong, with profitable ratios and growing operating margins and cash flow. However, its sales growth is weak, lacking double-digit performance, which indicates limited demand.
Despite this, estimates show an upward trend in most variables, suggesting high market revaluation potential, with target prices often above its current market value.