Is Open Text Stock a Good Investment?
Open Text Investment Advice | OTEX |
- Examine Open Text's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Open Text's leadership team and their track record. Good management can help Open Text navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Open Text's business and its evolving consumer preferences.
- Compare Open Text's performance and market position to its competitors. Analyze how Open Text is positioned in terms of product offerings, innovation, and market share.
- Check if Open Text pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Open Text's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Open Text Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Open Text Corp is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Open Text Stock
Researching Open Text's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 76.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.65. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Open Text Corp has Price/Earnings To Growth (PEG) ratio of 0.87. The entity last dividend was issued on the 7th of March 2025. The firm had 2:1 split on the 25th of January 2017.
To determine if Open Text is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Open Text's research are outlined below:
| Open Text Corp generated a negative expected return over the last 90 days | |
| Over 76.0% of the company shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: Signaturefd LLC Sells 3,560 Shares of Open Text Co. |
Open Text uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Open Text Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Open Text's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 1st of August 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of June 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Open Text's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Open Text's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-05-02 | 2007-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2006-08-31 | 2006-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2006-02-01 | 2005-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2005-11-03 | 2005-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2005-09-08 | 2005-06-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2005-02-08 | 2004-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2004-10-28 | 2004-09-30 | 0.01 | 0.02 | 0.01 | 100 | ||
2003-08-14 | 2003-06-30 | 0.05 | 0.06 | 0.01 | 20 |
Know Open Text's Top 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 originate 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 | Manufacturers Life Insurance Co | 2024-12-31 | 4.8 M | Brandes Investment Partners & Co | 2024-12-31 | 4.5 M | Letko, Brosseau & Associates Inc. | 2024-12-31 | 4.3 M | Guardian Capital Inc | 2024-12-31 | 4 M | Norges Bank | 2024-12-31 | 3.3 M | Amvescap Plc. | 2024-12-31 | 3.2 M | Clearbridge Advisors, Llc | 2024-12-31 | 2.8 M | Bank Of Montreal | 2024-12-31 | 2.6 M | Bmo Capital Markets Corp. | 2024-12-31 | 2.6 M | Jarislowsky Fraser Ltd | 2024-12-31 | 18.5 M | Mackenzie Investments | 2024-12-31 | 10.8 M |
Open Text's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 6.96 B.Market Cap |
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Open Text's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.06 | |
| Return On Capital Employed | 0.07 | 0.07 | |
| Return On Assets | 0.03 | 0.02 | |
| Return On Equity | 0.10 | 0.10 |
Determining Open Text's profitability involves analyzing its financial statements and using various financial metrics to determine if Open Text is a good buy. For example, gross profit margin measures Open Text's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Open Text's profitability and make more informed investment decisions.
Open Text's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Open Text's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Open Text Corp. Check Open Text's Beneish M Score to see the likelihood of Open Text's management manipulating its earnings.
Evaluate Open Text's management efficiency
Open Text Corp has return on total asset (ROA) of 0.043 % which means that it generated a profit of $0.043 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.16 %, meaning that it created $0.16 on every $100 dollars invested by stockholders. Open Text's management efficiency ratios could be used to measure how well Open Text manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Open Text's Return On Capital Employed is fairly stable compared to the past year. Return On Equity is likely to rise to 0.10 in 2025, whereas Return On Tangible Assets are likely to drop 0.06 in 2025. At this time, Open Text's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 14.4 B in 2025, whereas Other Assets are likely to drop 1.09 in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.92 | 14.62 | |
| Tangible Book Value Per Share | (24.46) | (23.23) | |
| Enterprise Value Over EBITDA | 7.47 | 7.09 | |
| Price Book Value Ratio | 2.24 | 3.16 | |
| Enterprise Value Multiple | 7.47 | 7.09 | |
| Price Fair Value | 2.24 | 3.16 | |
| Enterprise Value | 3.7 B | 3.9 B |
Open Text Corp benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Basic technical analysis of Open Stock
As of the 22nd of March, Open Text holds the Coefficient Of Variation of (1,110), risk adjusted performance of (0.08), and Variance of 2.98. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Open Text, as well as the relationship between them.Open Text's Outstanding Corporate Bonds
Open Text issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Open Text Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Open bonds can be classified according to their maturity, which is the date when Open Text Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Open Text's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Open Text's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 1.28 | |||
| Coefficient Of Variation | (1,110) | |||
| Standard Deviation | 1.73 | |||
| Variance | 2.98 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.03) | |||
| Treynor Ratio | (0.16) | |||
| Maximum Drawdown | 9.13 | |||
| Value At Risk | (2.83) | |||
| Potential Upside | 2.72 | |||
| Skewness | (0.26) | |||
| Kurtosis | 1.28 |
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 1.28 | |||
| Coefficient Of Variation | (1,110) | |||
| Standard Deviation | 1.73 | |||
| Variance | 2.98 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.03) | |||
| Treynor Ratio | (0.16) | |||
| Maximum Drawdown | 9.13 | |||
| Value At Risk | (2.83) | |||
| Potential Upside | 2.72 | |||
| Skewness | (0.26) | |||
| Kurtosis | 1.28 |
Consider Open Text's intraday indicators
Open Text intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Open Text stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Open Text Corporate Filings
8K | 13th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 12th of November 2024 Other Reports | ViewVerify | |
13A | 10th of October 2024 An amended filing to the original Schedule 13G | ViewVerify |
| 13th of September 2024 Other Reports | ViewVerify |
Open Stock media impact
Far too much social signal, news, headlines, and media speculation about Open Text that are available to investors today. That information is available publicly through Open media outlets and privately through word of mouth or via Open internal channels. However, regardless of the origin, that massive amount of Open data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Open Text news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Open Text relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Open Text's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Open Text alpha.
Open Text Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Open Text can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Open Text Corp Historical Investor Sentiment
Investor biases related to Open Text's public news can be used to forecast risks associated with an investment in Open. The trend in average sentiment can be used to explain how an investor holding Open can time the market purely based on public headlines and social activities around Open Text Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Open Text's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Open Text and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Open Text news discussions. The higher the estimate score, the more favorable the investor's outlook on Open Text.
Open Text Maximum Pain Price Across June 20th 2025 Option Contracts
Open Text's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Open Text close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Open Text's options.
Open Text Corporate Management
| Howard CPA | VP Officer | Profile | |
| Brian Sweeney | Executive Officer | Profile | |
| Michael Acedo | Chief VP | Profile | |
| Denise Miura | Senior Japan | Profile | |
| Renee McKenzie | Ex Officer | Profile |
Additional 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.