Open Text Stock Analysis (NASDAQ:OTEX)
Open Text Analysis Video
View Open Text stock analysis video. This is our OTEX analyst opinion covering the buy and sell arguments for OTEX stock.
Open Text Corp (USA) Stock Rating (4/5)
Our Open Text stock opinion is based on fundamentals of the company. This Open Text stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy OTEX stock?
- Open Text's average operating margin of 18.6% was exceptional.
- Net margins came in at average 56.8% for Open Text over the last twelve months.
- The operating cash flow looks good at 2.4 times the net income.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Open Text at 46%.
- Open Text has a healthy FCF (Free Cash Flow) margin of 17.6%.
Should you sell OTEX stock?
- Open Text is debt laden and has a high debt/equity ratio of 0.69.
- The company is trading at a price to sales multiple of 4.3, which is overvalued in comparison to the Computer-Software industry average multiple of 2.6.