Open Text Corp Stock Buy Hold or Sell Recommendation
| OTEX Stock | USD 34.60 0.13 0.38% |
Given the investment horizon of 90 days and your complete indifference towards market risk, our recommendation regarding Open Text Corp is 'Strong Buy'. Macroaxis provides Open Text buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding OTEX positions. The advice algorithm takes into account all of Open Text's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Open Text's buy or sell advice are summarized below:
Real Value 42.5 | Target Price 48.2 | Hype Value 34.27 | Market Value 34.6 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Open Text Corp given historical horizon and risk tolerance towards Open Text. When Macroaxis issues a 'buy' or 'sell' recommendation for Open Text Corp, the advice is generated through an automated system that utilizes algorithms and statistical models.
Open |
Execute Open Text Buy or Sell Advice
The Open recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Open Text Corp. Macroaxis does not own or have any residual interests in Open Text Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Open Text's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Open Text Trading Alerts and Improvement Suggestions
| Open Text Corp generated a negative expected return over the last 90 days | |
| Over 78.0% of the company shares are owned by institutional investors | |
| On 20th of March 2024 Open Text paid $ 0.25 per share dividend to its current shareholders | |
| Latest headline from benzinga.com: Business Process Management Market Size is expected to reach USD 60.49 billion by 2031, growing at a CAGR of 18.5 percent Straits Research |
Open Text Returns Distribution Density
The distribution of Open Text's historical returns is an attempt to chart the uncertainty of Open Text's future price movements. The chart of the probability distribution of Open Text daily returns describes the distribution of returns around its average expected value. We use Open Text Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Open Text returns is essential to provide solid investment advice for Open Text.
| Mean Return | -0.25 | Value At Risk | -2.98 | Potential Upside | 2.45 | Standard Deviation | 1.67 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Open Text historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Open Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Open Text is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Open Text Corp backward and forwards among themselves. Open Text's institutional investor refers to the entity that pools money to purchase Open Text's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bmo Capital Markets Corp. | 2023-12-31 | 5.5 M | Arrowstreet Capital Limited Partnership | 2023-12-31 | 4.6 M | Turtle Creek Asset Management Inc. | 2023-12-31 | 3.4 M | Norges Bank | 2023-12-31 | 3.3 M | Letko, Brosseau & Associates Inc. | 2023-12-31 | 2.9 M | Clearbridge Advisors, Llc | 2023-12-31 | 2.8 M | Guardian Capital Inc | 2023-12-31 | 2.8 M | Newsouth Capital Management Inc | 2023-12-31 | 2.7 M | Amvescap Plc. | 2023-12-31 | 2.7 M | Jarislowsky Fraser Ltd | 2023-12-31 | 15.4 M | Harris Associates L.p. | 2023-12-31 | 11.1 M |
Open Text Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 753.7M | (87.5M) | 86.1M | (462.0M) | (531.3M) | (504.7M) | |
| Free Cash Flow | 881.8M | 812.4M | 888.7M | 655.4M | 753.7M | 791.4M | |
| Depreciation | 551.6M | 520.6M | 504.0M | 657.4M | 756.0M | 793.8M | |
| Capital Expenditures | 72.7M | 63.7M | 93.1M | 123.8M | 142.4M | 149.5M | |
| Net Income | 234.4M | 310.9M | 397.3M | 150.6M | 173.2M | 166.9M | |
| End Period Cash Flow | 1.7B | 1.6B | 1.7B | 1.2B | 1.4B | 1.5B | |
| Other Non Cash Items | 29.3M | (49.0M) | (1.3M) | 198.0M | 227.7M | 239.1M | |
| Change To Netincome | 105.6M | 71.7M | 9.1M | 152.4M | 175.2M | 184.0M | |
| Change To Inventory | 21.7M | (30.6M) | (26.1M) | (107.9M) | (97.1M) | (92.2M) | |
| Dividends Paid | 188.7M | 210.7M | 237.7M | 259.5M | 298.5M | 165.7M | |
| Investments | (1.5B) | (68.8M) | (971.0M) | 131.2M | 118.1M | 124.0M | |
| Change Receivables | 84.5M | 61.0M | 81.8M | 168.6M | 193.9M | 203.6M | |
| Net Borrowings | 1.4B | (610M) | 597.9M | 4.6B | 5.3B | 5.6B |
Open Text Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Open Text or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Open Text's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Open stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.34 | |
β | Beta against NYSE Composite | 1.66 | |
σ | Overall volatility | 1.64 | |
Ir | Information ratio | -0.18 |
Open Text Volatility Alert
Open Text Corp exhibits very low volatility with skewness of -0.11 and kurtosis of -0.25. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Open Text's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Open Text's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Open Text Fundamentals Vs Peers
Comparing Open Text's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Open Text's direct or indirect competition across all of the common fundamentals between Open Text and the related equities. This way, we can detect undervalued stocks with similar characteristics as Open Text or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Open Text's fundamental indicators could also be used in its relative valuation, which is a method of valuing Open Text by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Open Text to competition |
| Fundamentals | Open Text | Peer Average |
| Return On Equity | 0.0313 | -0.31 |
| Return On Asset | 0.0385 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.20 % | (5.51) % |
| Current Valuation | 17.13 B | 16.62 B |
| Shares Outstanding | 267.64 M | 571.82 M |
| Shares Owned By Insiders | 2.22 % | 10.09 % |
| Shares Owned By Institutions | 77.66 % | 39.21 % |
| Number Of Shares Shorted | 5.53 M | 4.71 M |
| Price To Earning | 87.58 X | 28.72 X |
| Price To Book | 2.36 X | 9.51 X |
| Price To Sales | 1.68 X | 11.42 X |
| Revenue | 4.48 B | 9.43 B |
| Gross Profit | 3.39 B | 27.38 B |
| EBITDA | 1.35 B | 3.9 B |
| Net Income | 150.57 M | 570.98 M |
| Cash And Equivalents | 1.7 B | 2.7 B |
| Cash Per Share | 6.39 X | 5.01 X |
| Total Debt | 9.25 B | 5.32 B |
| Debt To Equity | 1.11 % | 48.70 % |
| Current Ratio | 1.56 X | 2.16 X |
| Book Value Per Share | 15.06 X | 1.93 K |
| Cash Flow From Operations | 779.21 M | 971.22 M |
| Short Ratio | 11.02 X | 4.00 X |
| Earnings Per Share | 0.48 X | 3.12 X |
| Price To Earnings To Growth | 0.87 X | 4.89 X |
| Target Price | 51.31 | |
| Number Of Employees | 23.6 K | 18.84 K |
| Beta | 1.1 | -0.15 |
| Market Capitalization | 9.24 B | 19.03 B |
| Total Asset | 17.09 B | 29.47 B |
| Retained Earnings | 2.05 B | 9.33 B |
| Working Capital | (944.38 M) | 1.48 B |
Open Text Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Open . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Open Text Buy or Sell Advice
When is the right time to buy or sell Open Text Corp? Buying financial instruments such as Open Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 4.5B | 9.2B | 10.6B | 11.2B | Total Assets | 10.2B | 17.1B | 19.7B | 20.6B |
Use Investing Ideas to Build Portfolios
In addition to having Open Text in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Toys Thematic Idea Now
Toys
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Toys Theme or any other thematic opportunities.
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Check out Open Text Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Open Text Corp information on this page should be used as a complementary analysis to other Open Text's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Open Stock analysis
When running Open Text's price analysis, check to measure Open Text's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Open Text is operating at the current time. Most of Open Text's value examination focuses on studying past and present price action to predict the probability of Open Text's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Open Text's price. Additionally, you may evaluate how the addition of Open Text to your portfolios can decrease your overall portfolio volatility.
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
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| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
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| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |
Is Open Text's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Open Text. If investors know Open will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Open Text listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.85) | Dividend Share 0.986 | Earnings Share 0.48 | Revenue Per Share 21.019 | Quarterly Revenue Growth 0.71 |
The market value of Open Text Corp is measured differently than its book value, which is the value of Open that is recorded on the company's balance sheet. Investors also form their own opinion of Open Text's value that differs from its market value or its book value, called intrinsic value, which is Open Text's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Open Text's market value can be influenced by many factors that don't directly affect Open Text's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Open Text's value and its price as these two are different measures arrived at by different means. Investors typically determine if Open Text is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Open Text's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.