CA - Enghouse Systems: Buy The Dip After Q1 Results

2024-03-17 07:39:21 ET

Summary

• Enghouse is a software company that serves different verticals selling enterprise software.
• In its latest Q1 2024 results, the market reacted negatively to the news with shares down 7%.
• Despite steadily improving financials and no debt on the balance sheet, the multiple has contracted significantly to the point where shares have gone nowhere in the last 5 years.
• This has created a buying opportunity for long-term investors looking to pick up this stellar compounder at a value price.

Please note all $ figures in , not , unless otherwise stated.

Introduction

Enghouse Systems Limited ( ENGH:CA ) is a software company that serves different verticals selling enterprise software. These targets are generally mission-critical software that focus in one of many verticals like transportation, video collaboration/conferencing, fleet management and supply chain, customer experience, public safety, and transit and fare collection....

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