Should You Go For This Small Cap Stock-ENGH.TO

Acrobull Canada Advisory Inc.

January 16			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Enghouse Systems Ltd.	ENGH.TO-TSX	Technology		$1.48Billion	Medium

Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group.

Recent Highlights

Oversold Conditions- The company has gone through some volatility in recent weeks however due to the strong fundamentals in place, we expect the stock to recover and return to the growth journey.

The customers looking for a mid to long term growth may choose to invest in it.

Third Quarter 2024 Financial Highlights

Revenue rose 13.9% over the nine-month period to $376.8 million from $330.9 million the previous year and 17.6% to $130.5 million from $111.0 million in Q3 2023.

SaaS and maintenance services are included in recurring revenue, which increased 22.8% to $88.8 million from $72.3 million in Q3 2023 to account for 68.1% of total revenue. As we continue to give priority to this revenue stream, recurring revenue climbed by 22.8% over the nine-month period, from $210.4 million to $258.4 million.

Operating activity results rose to $34.3 million from $30.9 million in Q3 2023 and to $100.4 million for the nine-month period from $86.4 million in the previous period.

As we expand our business with an emphasis on profitability, our net income was $20.6 million as opposed to $17.6 million in Q3 2023 and $58.7 million so far this year as opposed to $47.1 million last year.

Stock Observation- The company’s stock performance has been good however the stock has gone through some fluctuation in recent weeks, the RSI level for the stock is at 40 which shows close to oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$26.75 USD
Acrobull Recommendation	Buy
Target Price	Target $31.25 USD
RSI Level	14 Day RSI 40
Total Shares Outstanding	55.37 Million
Shares held by Insiders Risk Factor Stop Loss	21.95% Medium 5%