Open Text Shares Outstanding vs. Market Capitalization

OTEX Stock  USD 30.28  0.83  2.82%   
Based on Open Text's profitability indicators, Open Text Corp is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in December. Profitability indicators assess Open Text's ability to earn profits and add value for shareholders. At this time, Open Text's Days Sales Outstanding is fairly stable compared to the past year. EV To Sales is likely to rise to 2.74 in 2024, whereas Price To Sales Ratio is likely to drop 1.34 in 2024. At this time, Open Text's Operating Income is fairly stable compared to the past year. Net Income is likely to rise to about 488.5 M in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (66.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.790.7264
Significantly Up
Slightly volatile
For Open Text profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Open Text to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Open Text Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Open Text's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Open Text Corp over time as well as its relative position and ranking within its peers.
  

Open Text's Revenue Breakdown by Earning Segment

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Is Application Software space 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
0.058
Dividend Share
1.013
Earnings Share
1.73
Revenue Per Share
20.743
Quarterly Revenue Growth
(0.11)
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.

Open Text Corp Market Capitalization vs. Shares Outstanding Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Open Text's current stock value. Our valuation model uses many indicators to compare Open Text value to that of its competitors to determine the firm's financial worth.
Open Text Corp is rated below average in shares outstanding category among its peers. It is rated below average in market capitalization category among its peers creating about  29.45  of Market Capitalization per Shares Outstanding. At this time, Open Text's Market Cap is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Open Text's earnings, one of the primary drivers of an investment's value.

Open Text's Earnings Breakdown by Geography

Open Market Capitalization vs. Shares Outstanding

Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Open Text

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
265.88 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

Open Text

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
7.83 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Open Market Capitalization vs Competition

Open Text Corp is rated below average in market capitalization category among its peers. Market capitalization of Information Technology industry is now estimated at about 631.53 Billion. Open Text claims roughly 7.83 Billion in market capitalization contributing just under 2% to equities under Information Technology industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Open Text Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Open Text, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Open Text will eventually generate negative long term returns. The profitability progress is the general direction of Open Text's change in net profit over the period of time. It can combine multiple indicators of Open Text, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-69.6 M-66.1 M
Operating Income887.1 M931.4 M
Net Income465.3 M488.5 M
Income Tax Expense264 M277.2 M
Income Before Tax729.3 M765.8 M
Total Other Income Expense Net-157.8 M-149.9 M
Net Income Applicable To Common Shares172.9 M189.2 M
Net Income From Continuing Ops465.3 M317.8 M
Non Operating Income Net Other39.6 M41.6 M
Interest Income49.1 M48.7 M
Net Interest Income-516.2 M-490.4 M
Change To Netincome175.2 M184 M
Net Income Per Share 1.71  1.80 
Income Quality 2.08  2.04 
Net Income Per E B T 0.64  1.02 

Open Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Open Text. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Open Text position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Open Text's important profitability drivers and their relationship over time.

Use Open Text in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Open Text position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Open Text will appreciate offsetting losses from the drop in the long position's value.

Open Text Pair Trading

Open Text Corp Pair Trading Analysis

The ability to find closely correlated positions to Open Text could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Open Text when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Open Text - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Open Text Corp to buy it.
The correlation of Open Text is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Open Text moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Open Text Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Open Text can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Open Text position

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 Adviser Favorites Thematic Idea Now

Adviser Favorites
Adviser Favorites Theme
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 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 Adviser Favorites Theme or any other thematic opportunities.
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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.