Topic: How To Invest

Q: May I have your recommendation on Enghouse Systems? Thank you.

Article Excerpt

A: Enghouse Systems Ltd., $54.31, symbol ENGH on Toronto (Shares outstanding: 54.6 million; Market cap: $3.0 billion; www.enghouse.com), is a software and services provider. The company operates through two business groups: Interaction Management (53% of total revenue) sells software for managing customer interactions; and Asset Management (47% of revenue) offers technology solutions for network operators and software solutions for transit and transportation operators. Over the past five years, revenue for Enghouse Systems rose steadily from $279.3 million in 2015 (fiscal years ended October 31) to $385.9 million in 2019. Earnings jumped 21.9%, from $31.4 million ($0.60) in 2015 and to $47.3 million ($0.88) in 2016. Profit increased a further 7.5% in 2017, to $50.8 million ($0.95). Earnings then rose 13.6%, to $57.7 million ($1.06) in 2018, and a further 22.7% to $70.8 million ($1.30) in 2019. (All per-share earnings adjusted for a 2-for-1 split in January 2019). For the three months ended October 31, 2019, Enghouse Systems saw its revenue jump 27.4%, to…