Q: Hello 5i Team,
What are your thoughts on ENGH going forward with their push into education, health care, AI and the Middle East? I find the company frustrating as they are siting on a whack of cash and don't take advantage of their NCIB.
Thank you,
Brent
What are your thoughts on ENGH going forward with their push into education, health care, AI and the Middle East? I find the company frustrating as they are siting on a whack of cash and don't take advantage of their NCIB.
Thank you,
Brent
5i Research Answer:
Yes, it is frustrating, especially as the cash has been there a very long time and is now at record levels. Growth expectations are in the 10% range. The new initiatives will help, but are not likely to really accelerate things. What it needs is an acquisition, in our view. The recent quarter was fine, but it is not likely to get a much higher valuation (21X earnings now) without better growth or some other catalyst.