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 (3.9/5)
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 stood at a healthy 56.8% (average) for Open Text in the Trailing Twelve Months.
- The company has an operating cash flow which is 2.4 times the net income. We see this as a positive signal.
- Open Text has a good Return On Equity (ROE) of 46%.
- The company has a healthy free cash flow margin of 17.6%.
Should you sell OTEX stock?
- With a debt/equity ratio of 0.69, Open Text is highly leveraged in comparison to Computer and Technology peers.
- OTEX stock is trading at a PS multiple of 4.3, which is a negative when compared to the Computer-Software industry average multiple of 2.7.