Enghouse SystemsTSX:ENGH +3.31%60 ROA % is 7.72% as of Apr. 2026, which is 36% below its 10-year median of 11.98. GuruFocus rates TSX:ENGH with a GF Score™ of 60/100 and a GF Value™ of C$26.90 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,881 Software companies, Enghouse Systems ranks better than 77.37% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Enghouse Systems's annualizedNet Income for the quarter that ended in Apr. 2026 was C$65.2 Mil.
Enghouse Systems's average Total Assets over the quarter that ended in Apr. 2026 was C$844.4 Mil. Therefore, Enghouse Systems's annualized ROA % for the quarter that ended in Apr. 2026 was 7.72%.
The historical rank and industry rank for Enghouse Systems's ROA % or its related term are showing as below:
TSX:ENGH'
s ROA % Range Over the Past 10 Years
Min: 8.45 Med: 11.98 Max: 14.56
Current: 8.45
During the past 13 years, Enghouse Systems's highest ROA % was 14.56%. The lowest was 8.45%. And the median was 11.98%.
TSX:ENGH's ROA % is ranked better than 77.37% of 2881
companies
in the Software industry
Industry Median: 1.65
vs TSX:ENGH: 8.45
Enghouse Systems (TSX:ENGH) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Enghouse Systems ROA % Related Terms
Enghouse Systems ROA % Historical Data
* Premium members only.
The historical data trend for Enghouse Systems's ROA % 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.
For the Software - Application subindustry, Enghouse Systems's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Enghouse Systems's ROA % distribution charts can be found below:
* The bar in red indicates where Enghouse Systems's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Enghouse Systems (TSX:ENGH) has a ROA % of 7.72% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Enghouse Systems and its competitors. This is 36% below median its historical median of 11.98. Over the past decade, Enghouse Systems' ROA % has ranged from 8.45 to 14.56. According to the industry distribution chart, Enghouse Systems ranks #652 out of 2881 companies in the Software industry, placing it in the top 22.6%.
Is Enghouse Systems' ROA % too high?
Enghouse Systems' current ROA % of 7.72% is 36% below median its 10-year median of 11.98. Over the past 10 years, this metric has ranged from a low of 8.45 to a high of 14.56. The Software industry median ROA % is 1.65. Enghouse Systems' value of 7.72% is 367.9% above this industry median. Based on the distribution chart, Enghouse Systems ranks #652 out of 2881 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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' ROA % compare to UBER and SHOP?
According to the Software industry distribution chart, Enghouse Systems ranks #652 out of 2881 companies for ROA %. This places Enghouse Systems in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 1.65. Enghouse Systems' value of 7.72% is 367.9% above this benchmark. Historically, Enghouse Systems' own ROA % has ranged from 8.45 to 14.56 over the past decade. While the company's 10-year median is 11.98 vs. the industry median of 1.65, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,881 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Enghouse Systems's current ROA % of 7.72% is 367.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Enghouse Systems and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enghouse Systems's current ROA % is 7.72%, which is 36% below median its own 10-year median of 11.98. 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$26.90, compared to a current price of C$15.94 — trading 40.7% below its estimated fair value. The current ROA % is 7.72%, which is 36% below median its 10-year median of 11.98 and 367.9% above the Software industry median of 1.65. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Enghouse Systems (TSX:ENGH), the current ROA % is 7.72% 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$15.94 is trading 40.7% below its estimated GF Value™ of C$26.90.
GuruFocus considers Enghouse Systems to be Significantly Undervalued.
Key valuation signals for TSX:ENGH:
ROA %: 7.72% (36% below median its 10-year median of 11.98)
GF Value™: C$26.90 vs. price of C$15.94 (40.7% below fair value)
Industry Position: 367.9% above the Software median (#652 of 2881)
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.
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