Enghouse Systems Net Income vs. Gross Profit

ENGH Stock  CAD 29.17  0.02  0.07%   
Based on Enghouse Systems' profitability indicators, Enghouse Systems' profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Enghouse Systems' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1996-01-31
Previous Quarter
20 M
Current Value
20.6 M
Quarterly Volatility
8.4 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 1st of December 2024, Price To Sales Ratio is likely to drop to 3.43. In addition to that, Days Sales Outstanding is likely to drop to 86.05. At this time, Enghouse Systems' Net Interest Income is very stable compared to the past year. As of the 1st of December 2024, Net Income Per Share is likely to grow to 1.24, though Total Other Income Expense Net is likely to grow to (29.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.790.77
Fairly Up
Slightly volatile
Net Profit Margin0.190.18
Notably Up
Slightly volatile
Operating Profit Margin0.190.24
Significantly Down
Pretty Stable
Pretax Profit Margin0.280.22
Significantly Up
Slightly volatile
Return On Assets0.0640.083
Significantly Down
Pretty Stable
Return On Equity0.0880.12
Way Down
Pretty Stable
For Enghouse Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enghouse Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enghouse Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enghouse Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enghouse Systems over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Enghouse Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Enghouse Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enghouse Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Enghouse Systems Gross Profit vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Enghouse Systems's current stock value. Our valuation model uses many indicators to compare Enghouse Systems value to that of its competitors to determine the firm's financial worth.
Enghouse Systems is rated # 3 in net income category among its peers. It is rated # 4 in gross profit category among its peers fabricating about  4.12  of Gross Profit per Net Income. At this time, Enghouse Systems' Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Enghouse Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Enghouse Systems' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Enghouse Gross Profit vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Enghouse Systems

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
72.25 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Enghouse Systems

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
297.49 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Enghouse Gross Profit Comparison

Enghouse Systems is currently under evaluation in gross profit category among its peers.

Enghouse Systems Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Enghouse Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enghouse Systems will eventually generate negative long term returns. The profitability progress is the general direction of Enghouse Systems' change in net profit over the period of time. It can combine multiple indicators of Enghouse Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income12.5 M13.1 M
Operating Income140.4 M147.4 M
Income Before Tax100.3 M105.3 M
Total Other Income Expense Net-31.4 M-29.8 M
Net Income83.1 M87.2 M
Income Tax Expense17.2 M18.1 M
Net Income From Continuing Ops83.1 M71.1 M
Net Income Applicable To Common Shares108.7 M70.1 M
Interest Income7.2 M7.6 M
Net Interest Income6.2 M6.5 M
Change To Netincome-10.7 M-10.2 M
Net Income Per Share 1.18  1.24 
Income Quality 1.44  1.05 
Net Income Per E B T 0.75  0.59 

Enghouse Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Enghouse Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Enghouse Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Enghouse Systems' important profitability drivers and their relationship over time.

Use Enghouse Systems in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Enghouse Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enghouse Systems will appreciate offsetting losses from the drop in the long position's value.

Enghouse Systems Pair Trading

Enghouse Systems Pair Trading Analysis

The ability to find closely correlated positions to Enghouse Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enghouse Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Enghouse Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Enghouse Systems to buy it.
The correlation of Enghouse Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Enghouse Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enghouse Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Enghouse Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Other Information on Investing in Enghouse Stock

To fully project Enghouse Systems' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enghouse Systems at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Enghouse Systems' income statement, its balance sheet, and the statement of cash flows.
Potential Enghouse Systems investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Enghouse Systems investors may work on each financial statement separately, they are all related. The changes in Enghouse Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Enghouse Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.