Open Text CorporationStock Price and Value Analysis

Should you buy Open Text Corporation stock? (NasdaqGS:OTEX). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is making money at a decent rate.
  • This stock is on sale.
  • This company has stable growth.
  • This company is less known than others.
  • This company has a low dividend yield.

OTEX Free Cash Flow Trend

Based on historical returns, we believe that Open Text Corporation can grow its free cash at a rate of about 6%. That's positive!

Free Cash Flow trendline for OTEX
Free Cash Flow trendline for Open Text Corporation

Inside the OTEX Numbers

OTEX Price
(Open Text Corporation stock price per share)
$32.53
[?] OTEX Fair Price
(based on intrinsic value)
$38.18
[?] OTEX Safety Price (based on a variable margin of safety) $22.91
[?] PE Ratio versus Sector 243% higher than other Technology stocks
[?] PE Ratio versus Industry 223% higher than other Application Software stocks
[?] Cash Yield 9.86%
[?] Free Cash Flow Jitter 20%
[?] Dividend Yield 2%

Is Open Text Corporation Stock on Sale?

We believe that Open Text Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Open Text Corporation looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy OTEX Stock?

Does Open Text Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.