Enghouse SystemsTSX:ENGH +0.75%60 Interest Coverage is 175.90 as of Apr. 2026, which is 1% above its 10-year median of 174.43. GuruFocus rates TSX:ENGH with a GF Score™ of 60/100 and a GF Value™ of C$26.88 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,706 Software companies, Enghouse Systems ranks better than 74.79% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Enghouse Systems's
Operating Income
for the
three
months ended in Apr. 2026 was C$18.5 Mil. Enghouse Systems's Interest Expense for the
three
months ended in Apr. 2026 was C$-0.1 Mil.
Enghouse Systems's interest coverage for the quarter that ended in Apr. 2026 was 175.90.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Enghouse Systems Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Enghouse Systems's Interest Coverage or its related term are showing as below:
TSX:ENGH'
s Interest Coverage Range Over the Past 10 Years
Min: 89.67 Med: 174.43 Max: 1072.11
Current: 185.95
TSX:ENGH's Interest Coverage is ranked better than 74.79% of 1706
companies
in the Software industry
Industry Median: 24.75
vs TSX:ENGH: 185.95
Enghouse Systems (TSX:ENGH) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Enghouse Systems Interest Coverage Related Terms
Enghouse Systems Interest Coverage Historical Data
* Premium members only.
The historical data trend for Enghouse Systems's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSX:ENGH vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, Enghouse Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Enghouse Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Enghouse Systems's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Enghouse Systems (TSX:ENGH) has a Interest Coverage of 175.90 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Enghouse Systems and its competitors. This is near median its historical median of 174.43. Over the past decade, Enghouse Systems' Interest Coverage has ranged from 89.67 to 1,072.11. According to the industry distribution chart, Enghouse Systems ranks #430 out of 1706 companies in the Software industry, placing it in the top 25.2%.
Is Enghouse Systems' Interest Coverage too high?
Enghouse Systems' current Interest Coverage of 175.90 is near median its 10-year median of 174.43. Over the past 10 years, this metric has ranged from a low of 89.67 to a high of 1,072.11. The Software industry median Interest Coverage is 24.75. Enghouse Systems' value of 175.90 is 610.7% above this industry median. Based on the distribution chart, Enghouse Systems ranks #430 out of 1706 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' Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, Enghouse Systems ranks #430 out of 1706 companies for Interest Coverage. This puts Enghouse Systems in the upper half of its industry. The industry median Interest Coverage is 24.75. Enghouse Systems' value of 175.90 is 610.7% above this benchmark. Historically, Enghouse Systems' own Interest Coverage has ranged from 89.67 to 1,072.11 over the past decade. While the company's 10-year median is 174.43 vs. the industry median of 24.75, 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.75, based on 1,706 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Enghouse Systems's current Interest Coverage of 175.90 is 610.7% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Enghouse Systems and its competitors. For the Software industry, the median Interest Coverage is 24.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enghouse Systems's current Interest Coverage is 175.90, which is near median its own 10-year median of 174.43. 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$26.88, compared to a current price of C$16.06 — trading 40.3% below its estimated fair value. The current Interest Coverage is 175.90, which is near median its 10-year median of 174.43 and 610.7% above the Software industry median of 24.75. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Enghouse Systems (TSX:ENGH), the current Interest Coverage is 175.90 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$16.06 is trading 40.3% below its estimated GF Value™ of C$26.88.
GuruFocus considers Enghouse Systems to be Significantly Undervalued.
Key valuation signals for TSX:ENGH:
Interest Coverage: 175.90 (near median its 10-year median of 174.43)
GF Value™: C$26.88 vs. price of C$16.06 (40.3% below fair value)
Industry Position: 610.7% above the Software median (#430 of 1706)
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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