Open Text logged a -0.9% change during today's morning session, and is now trading at a price of $38.08 per share.
Open Text shares moved -10.7% over the last 52 weeks, with a high of $43.1 and a low of $24.91. During this time, the stock lagged the S&P 500 index by -2.0%. As of January 2022, the company's 50-day average price is $35.6. Open Text Corporation engages in the designs, develops, markets, and sells information management software and solutions. The large-cap Technology company has 14,400 full time employees and is based in Waterloo, Canada. Open Text has returned a 2.4% dividend yield over the last 12 months.
Snapshot of the Company's Consistent Operating Margins:
|Earnings Per Share||$1.06||$0.86||$1.14||$1.17|
|Free Cash Flow||$812,441||$881,827||$812,445||$888,701|
|Net Current Assets||-$2,487,977||-$3,841,714||-$3,307,823||-$3,861,346|
|Long Term Debt||$2,604,878||$3,584,311||$3,578,859||$4,209,567|
|Net Debt / EBITDA||1.54||2.14||1.5||2.02|
Open Text Is Reasonably Valued:
Compared to the Technology sector's average of 27.16, Open Text has a trailing twelve month P/E ratio of 32.5 and, according to its EPS guidance of 5.91, an expected P/E ratio of 6.4.
Furthermore, Open Text is likely undervalued in terms of its equity because its P/B ratio is 2.5 compared to its sector average of 6.23. The company's shares are currently trading 98.5% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.06 * 15.435) = $19.19
Open Text Benefits From Positive Market Indicators:
3 analysts are following Open Text and have set target prices ranging from $49.57 to $63.16 per share. On average, they have given the company a rating of buy. At the current price of $38.08, OTEX is trading -33.0% away from its average analyst target price of $56.84 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 2.7% of the company's shares are tied to short positions. Institutions own 76.0% of Open Text's shares, while the insider ownership rate stands at 1.76%. The biggest shareholder is Jarislowsky, Fraser Ltd with a 6% stake in the company worth approximately $633,320,505.