Open Text Stock Analysis (NASDAQ:OTEX)

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$34.68 $0.1 (0.29%) OTEX stock closing price Apr 28, 2017 (Closing)
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Open Text
Updated on : Apr 28, 2017
previous close
OTEX 34.7 (0%)
NASDAQ 6047.6 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
18.6%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.4B
Debt/Equity Ratio:
 0.69
Compared to the industry
Cash Flow
Operating cash flow:
$107M
Net Income:
$45M
Dividend Yield
OTEX dividend yield:
1.33%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
OTEX PS :
4.3
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.7%
Return on Equity:
46%
Free Cash Flow Margin:
17.6%
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Open Text Analysis Video

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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.

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