Enghouse SystemsTSX:ENGH +1.81%60 Gross Margin % is 61.34% as of Apr. 2026, which is 11% below its 10-year median of 69.19. GuruFocus rates TSX:ENGH with a GF Score™ of 60/100 and a GF Value™ of C$26.87 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,681 Software companies, Enghouse Systems ranks better than 72.92% on this metric.
Enghouse Systems Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for Enghouse Systems's Gross Margin % or its related term are showing as below:
TSX:ENGH'
s Gross Margin % Range Over the Past 10 Years
Min: 62.86 Med: 69.19 Max: 72.25
Current: 62.86
During the past 13 years, the highestGross Margin % of Enghouse Systems was 72.25%. The lowest was 62.86%. And the median was 69.19%.
TSX:ENGH's Gross Margin % is ranked better than 72.92% of 2681
companies
in the Software industry
Industry Median: 40.41
vs TSX:ENGH: 62.86
Enghouse Systems had a gross margin of 61.34% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Enghouse Systems was -2.60% per year.
Enghouse Systems (TSX:ENGH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Enghouse Systems had a gross margin of 61.34% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Enghouse Systems Gross Margin % Related Terms
Enghouse Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Enghouse Systems's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:ENGH vs UBER, SHOP, CRM: Gross Margin % Comparison
For the Software - Application subindustry, Enghouse Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Enghouse Systems Gross Margin % vs Software Industry
For the Software industry and Technology sector, Enghouse Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Enghouse Systems's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Enghouse Systems (TSX:ENGH) has a Gross Margin % of 61.34% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Enghouse Systems and its competitors. This is 11% below median its historical median of 69.19. Over the past decade, Enghouse Systems' Gross Margin % has ranged from 62.86 to 72.25. According to the industry distribution chart, Enghouse Systems ranks #726 out of 2681 companies in the Software industry, placing it in the top 27.1%.
Is Enghouse Systems' Gross Margin % too high?
Enghouse Systems' current Gross Margin % of 61.34% is 11% below median its 10-year median of 69.19. Over the past 10 years, this metric has ranged from a low of 62.86 to a high of 72.25. The Software industry median Gross Margin % is 40.41. Enghouse Systems' value of 61.34% is 51.8% above this industry median. Based on the distribution chart, Enghouse Systems ranks #726 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Enghouse Systems has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Enghouse Systems' Gross Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Enghouse Systems ranks #726 out of 2681 companies for Gross Margin %. This puts Enghouse Systems in the upper half of its industry. The industry median Gross Margin % is 40.41. Enghouse Systems' value of 61.34% is 51.8% above this benchmark. Historically, Enghouse Systems' own Gross Margin % has ranged from 62.86 to 72.25 over the past decade. While the company's 10-year median is 69.19 vs. the industry median of 40.41, Enghouse Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Enghouse Systems's current Gross Margin % of 61.34% is 51.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Enghouse Systems and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enghouse Systems's current Gross Margin % is 61.34%, which is 11% below median its own 10-year median of 69.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enghouse Systems stock overvalued right now?
Based on GuruFocus' analysis, Enghouse Systems (TSX:ENGH) is currently considered Significantly Undervalued. The stock's GF Value™ is C$26.87, compared to a current price of C$16.35 — trading 39.2% below its estimated fair value. The current Gross Margin % is 61.34%, which is 11% below median its 10-year median of 69.19 and 51.8% above the Software industry median of 40.41. Enghouse Systems' overall GF Score™ is 60/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Enghouse Systems (TSX:ENGH), the current Gross Margin % is 61.34% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Enghouse Systems (TSX:ENGH) Overvalued in 2026?
Based on GuruFocus' analysis, Enghouse Systems stock appears to be undervalued.
The current stock price of C$16.35 is trading 39.2% below its estimated GF Value™ of C$26.87.
GuruFocus considers Enghouse Systems to be Significantly Undervalued.
Key valuation signals for TSX:ENGH:
Gross Margin %: 61.34% (11% below median its 10-year median of 69.19)
GF Value™: C$26.87 vs. price of C$16.35 (39.2% below fair value)
Industry Position: 51.8% above the Software median (#726 of 2681)
No single metric tells the full story. See the TSX:ENGH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Enghouse Systems Ltd is a Canada-based provider of software and services to a variety of end markets. The firm's operations are organized in two segments, namely, the Interactive Management Group (IMG) and the Asset Management Group (AMG). It earns the majority of its revenue from Interactive Management Group. IMG specializes in contact center and video software and services designed to enhance customer service by increasing efficiency and managing customer communications across multiple types of interactions, including voice, email, social channels, web chats, text, and videos. The firm has operations in Canada, the United States, the United Kingdom, Europe, excluding Scandinavia, Germany, Asia-Pacific, and other regions, with maximum revenue from the USA.
60GF Score
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