Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Enghouse Systems Limited (ENGH.TO)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$31.44 - $81.83$47.79
Multi-Stage$23.04 - $25.09$24.05
Blended Fair Value$35.92
Current Price$22.95
Upside56.50%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS19.44%18.92%0.960.810.690.590.490.400.330.290.250.21
YoY Growth--18.71%16.92%17.06%21.32%23.34%18.65%13.97%16.15%20.55%22.86%
Dividend Yield--3.49%2.17%1.75%1.32%0.80%0.75%0.93%0.90%0.99%0.70%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)75.18
(-) Cash Dividends Paid (M)59.68
(=) Cash Retained (M)15.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)15.049.405.64
Cash Retained (M)15.5015.5015.50
(-) Cash Required (M)-15.04-9.40-5.64
(=) Excess Retained (M)0.466.109.86
(/) Shares Outstanding (M)55.2555.2555.25
(=) Excess Retained per Share0.010.110.18
LTM Dividend per Share1.081.081.08
(+) Excess Retained per Share0.010.110.18
(=) Adjusted Dividend1.091.191.26
WACC / Discount Rate9.15%9.15%9.15%
Growth Rate5.50%6.50%7.50%
Fair Value$31.44$47.79$81.83
Upside / Downside36.98%108.23%256.57%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)75.1880.0785.2790.8196.72103.00106.09
Payout Ratio79.39%81.51%83.63%85.75%87.88%90.00%92.50%
Projected Dividends (M)59.6865.2671.3177.8884.9992.7098.13

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.15%9.15%9.15%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)59.2359.7960.35
Year 2 PV (M)58.7359.8560.98
Year 3 PV (M)58.2159.8861.58
Year 4 PV (M)57.6559.8762.15
Year 5 PV (M)57.0759.8362.69
PV of Terminal Value (M)981.801,029.221,078.46
Equity Value (M)1,272.701,328.441,386.21
Shares Outstanding (M)55.2555.2555.25
Fair Value$23.04$24.05$25.09
Upside / Downside0.38%4.78%9.33%

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