Investment Q&A

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: I believe you mentioned before that you think the market has punished Enghouse too much.

Question: what valuation would you think appropriate for Enghouse considering its net cash position of $3.67 per share (if my shares outstanding total are correct), growing earnings per share profile and growing divided?

I understand the company has a lot of positives going for it, but I have a hard time getting around ESL's valuation. 31x 2016 earnings, even when you deduct the cash from the share price, seems like a lot to me.

I'm really interested in hearing why you think the market bringing down ESL to 31x 2016 earnings is punishing it too much.

Thanks again for your great insights and fantastic service.

John

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Read Answer Asked by john on March 03, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: I noticed CSU has bounced back from the recent sell off while ESL is languishing. Does that place a question mark over ESL? Is it the time to lighten up?

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Read Answer Asked by Andrew on March 01, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Hi Peter and team,

I own Enghouse in my TFSA and with the pullback have considered adding to the position. Could you compare it with KSX in terms of growth potential and which one you would recommend.

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Read Answer Asked by Greg on February 27, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Why the big drop in ESL today?

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Read Answer Asked by donald on February 08, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Would you buy a 5% position all at once if you could buy ESL at $55? Is $55 a great buying opportunity for a 5 year hold?

Thankyou

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Read Answer Asked by Richard on January 28, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Happy New Years Guys !

If you had a choice between CSU, ESL or DSG which we would you choose. And how would you rank/order them. Thanks !

Keep up the great service ! I took advantage of the special and renewed for an additional 2 years.

Dave

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Read Answer Asked by David on January 12, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Now that ESL has come down a bit, would this be a good time to buy if not currently owned? Or would you prefer DSG or KXS? Only other tech holding is CSU. Cheers.

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Read Answer Asked by Josh on January 12, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Thank you for the ESL recommendation. I bought it in the mid $40's and it is now just above $70. What do you think of the valuation at the moment? I am thinking of selling half of my position, thoughts?

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Read Answer Asked by Arthur on January 07, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: We have done well with Enghouse - I company I would never have heard of without 5i. Thank you.
Our weighting in Enghouse has reached 8.3%. This is due to ESL's stock price increase plus the declines in Energy, Materials, Financial & Utility sectors. Is it time to reduce ESL's weighting to 7% or not sell and hope for a recovery in the other sectors? If I were to sell I would probably increase our weighting in MDA to 5% or open a 2% weighting in XTC or KXS.

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Read Answer Asked by James on January 04, 2016

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: This is a note of appreciation rather than a question. I bought Enghouse in March 2012 for an average cost of $14 after your A- rating the previous December, for a return of over 400%. Many, many thanks, especially in this market.

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Read Answer Asked by Judith on December 17, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Could you please comment on ESL's fourth quarter and year-end earnings release? It looks very good to me.

Thank you, Peter

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Read Answer Asked by Peter on December 17, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: A comment of ESL's earnings please if you have not been asked already. Merry Christmas and Happy Holidays!

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Read Answer Asked by Christopher on December 11, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Any thoughts on ESL's recent purchase of CTI Group?

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Read Answer Asked by angus on December 08, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Hello Peter and 5i team,
We would like to add another tech name to our portfolio. Currently we have DH, ESL, and TNC. Can you please suggest a couple of names that would enhance are current holdings. We were thinking of DSG .
thank you for your opinion.

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Read Answer Asked by john on November 27, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: At present I hold three tech stocks (DH, MDA, and ET) and would like to add a fourth. Which of the following would you suggest at this time: ESL, CSU, or DSG. Thank you.

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Read Answer Asked by Barrie on November 25, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Hi gang. Enghouse has now run up to 17% in a so called balanced portfolio. I pleaded with my broker to let it run since April. I will sell a half positing 500 shares. I was going to add Descartes or Kinaxsis. Your thoughts and suggestions beside half of each? Thanks for all you do for us. I will renew today. David.

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Read Answer Asked by David on November 24, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Hello Peter and 5i staff,
Thank you for your recommendation of Enghouse . We sold a portion as it was overweight in our portfolio. [ 3 bagger ]. We would like to add another growth stock. We were thinking of DHX or AYA. What are your favourite names at present?

We just renewed our subscription today for 2 years. Great value and great advice. We look forward to seeing Peter on BNN today. thanks again

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Read Answer Asked by john on November 19, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: I would appreciate your comments on Enghouse's press release regarding the intended acquisition of CTI Group. CTI looks like a good addition for Enghouse. Enghouse continues to look a lot like Constellation Software. Many thanks, Peter

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Read Answer Asked by Peter on October 19, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: It seems every time ESL gets back to around $55, insiders unload a sizeable amount of stock. Does this suggest they see limited upside to the stock?

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Read Answer Asked by Ken on October 07, 2015

• Enghouse Systems Limited (ENGH $20.71)
  • $20.71 P/E (TTM): 14.93X Cap: $1.13B
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Q: Nice price rise for ESL today. Do you know what is behind the move?

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Read Answer Asked by Douglas on October 02, 2015