Open Text Corporation Stock 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.

OTEX Free Cash Flow Trend

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

Based on historical returns, we believe that Open Text Corporation can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantages
  • This company has an average dividend yield.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This stock looks overpriced.
  • This company is less known than others.

Inside the OTEX Numbers

OTEX Price
(Open Text Corporation stock price per share)
$45.33
[?] OTEX Fair Price
(based on intrinsic value)
$33.01
[?] OTEX Safety Price (based on a variable margin of safety) $19.81
[?] PE Ratio versus Sector 732% higher than other Technology stocks
[?] PE Ratio versus Industry 186% higher than other Unknown stocks
[?] Cash Yield 6.90%
[?] Free Cash Flow Jitter 84%
[?] Dividend Yield 2%
Shares Shorted 2,371,406

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,371,406 shares shorted. With 267,907,888 shares available for purchase and an average trading volume over the past 10 trading days of 554,800, it would take at least 4.274 days for all of the short holders to cover their shorts.

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 overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

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.