Enghouse Systems (TSX:ENGH) Gross Margin % : 65.49% (As of Jan. 2024)

View and export this data going back to 1998. Start your Free Trial

What is Enghouse Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Enghouse Systems's Gross Profit for the three months ended in Jan. 2024 was C$78.9 Mil. Enghouse Systems's Revenue for the three months ended in Jan. 2024 was C$120.5 Mil. Therefore, Enghouse Systems's Gross Margin % for the quarter that ended in Jan. 2024 was 65.49%.

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: 66.51 Med: 69.39 Max: 72.25
Current: 66.51

During the past 13 years, the highest Gross Margin % of Enghouse Systems was 72.25%. The lowest was 66.51%. And the median was 69.39%.

TSX:ENGH's Gross Margin % is ranked better than
75.14% of 2627 companies
in the Software industry
Industry Median: 41.73 vs TSX:ENGH: 66.51

Enghouse Systems had a gross margin of 65.49% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Enghouse Systems was -0.50% per year.

Enghouse Systems Gross Margin % Historical Data

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.

* Premium members only.

Enghouse Systems Gross Margin % Chart

Enghouse Systems Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Gross Margin %

Get a 7-Day Free Trial

69.21

71.18

72.25

69.57

66.96

Enghouse Systems Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															67.30	66.41	67.68	66.53	65.49

Competitive Comparison of Enghouse Systems's Gross Margin %

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's Gross Margin % Distribution in the 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.

Enghouse Systems Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Enghouse Systems's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )	=	Gross Profit (A: Oct. 2023 )	/	Revenue (A: Oct. 2023 )
	=	304	/	454.022
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(454.022 - 149.999)	/	454.022
	=	66.96 %

Enghouse Systems's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	78.9	/	120.489
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(120.489 - 41.582)	/	120.489
	=	65.49 %

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) 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 65.49% for the quarter that ended in Jan. 2024 => 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

Thank you for viewing the detailed overview of Enghouse Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Enghouse Systems (TSX:ENGH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Enghouse Systems Ltd (TSX:ENGH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

EGHSF:USA

Address

80 Tiverton Court, Suite 800, Markham, ON, CAN, L3R 0G4

Website

https://www.enghouse.com

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 and the Asset Management Group. It earns majority of its revenue from Interactive Management Group. The firm has operations in Canada, the United States, the United Kingdom, Europe, excluding Scandinavia, Germany, Asia-Pacific and other.