Open Text Corp Stock Analysis

OTEX Stock  CAD 45.61  0.63  1.40%   
Open Text Corp holds a debt-to-equity ratio of 1.109. With a high degree of financial leverage come high-interest payments, which usually reduce Open Text's Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Open Text's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Open Text's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Open Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Open Text's stakeholders.
For most companies, including Open Text, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Open Text Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Open Text's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Open Text's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Open Text is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Open Text to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Open Text is said to be less leveraged. If creditors hold a majority of Open Text's assets, the Company is said to be highly leveraged.
Open Text Corp is fairly valued with Real Value of 47.43 and Hype Value of 45.61. The main objective of Open Text stock analysis is to determine its intrinsic value, which is an estimate of what Open Text Corp is worth, separate from its market price. There are two main types of Open Text's stock analysis: fundamental analysis and technical analysis. Fundamental analysis focuses on the financial and economic factors that affect Open Text's performance, such as revenue growth, earnings, and financial stability. Technical analysis, on the other hand, focuses on the price and volume data of Open Text's stock to identify patterns and trends that may indicate its future price movements.
The Open Text stock is traded in Canada on Toronto Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in Canada. Open Text is usually not traded on Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day, New Year 's Day, Family Day, Good Friday, Victoria Day, Canada Day. Open Stock trading window is adjusted to America/Toronto timezone.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Open Text Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.

Open Stock Analysis Notes

About 83.0% of the company shares are owned by institutional investors. The book value of Open Text was now reported as 22.12. The company has Price/Earnings To Growth (PEG) ratio of 1.15. Open Text Corp last dividend was issued on the 5th of December 2025. The entity had 2:1 split on the 25th of January 2017. Open Text Corporation engages in the designs, develops, markets, and sells information management software and solutions. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada. OPEN TEXT operates under SoftwareApplication classification in Canada and is traded on Toronto Stock Exchange. It employs 14800 people. To find out more about Open Text Corp contact Mark Barrenechea at 519-888-7111 or learn more at https://www.opentext.com.

Open Text Corp Investment Alerts

Open Text Corp generated a negative expected return over the last 90 days
Over 83.0% of the company shares are owned by institutional investors

Open Market Capitalization

The company currently falls under 'Large-Cap' category with a current market capitalization of 11.44 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Open Text's market, we take the total number of its shares issued and multiply it by Open Text's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Open Profitablity

Open Text's profitability indicators refer to fundamental financial ratios that showcase Open Text's ability to generate income relative to its revenue or operating costs. If, let's say, Open Text is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Open Text's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Open Text's profitability requires more research than a typical breakdown of Open Text's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Profit Margin (PM) of 0.1 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.23 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.23.

Technical Drivers

As of the 9th of January, Open Text holds the Variance of 1.94, risk adjusted performance of (0.14), and Coefficient Of Variation of (497.99). 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 Corp Price Movement Analysis

Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Triple Exponential Moving Average (T3) indicator is developed by Tim Tillson as Open Text Corp price series composite of a single exponential moving average, a double exponential moving average and a triple exponential moving average.

Open Text Outstanding 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.

Open Text Predictive Daily 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 Forecast Models

Open Text's time-series forecasting models are one of many Open Text's stock analysis techniques aimed at predicting future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Open Text's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Open Text Corp Debt to Cash Allocation

Open Text Corp has accumulated 6.64 B in total debt with debt to equity ratio (D/E) of 1.11, which is about average as compared to similar companies. Open Text Corp has a current ratio of 1.53, which is within standard range for the sector. Debt can assist Open Text until it has trouble settling it off, either with new capital or with free cash flow. So, Open Text's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Open Text Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Open to invest in growth at high rates of return. When we think about Open Text's use of debt, we should always consider it together with cash and equity.

Open Text Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Open Text's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Open Text, which in turn will lower the firm's financial flexibility.

Open Text Corporate Bonds Issued

About Open Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Open Text prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Open shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas. a specific sector, or an individual Stock such as Open Text. By using and applying Open Stock analysis, traders can create a robust methodology for identifying Open entry and exit points for their positions.
Open Text Corporation engages in the designs, develops, markets, and sells information management software and solutions. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada. OPEN TEXT operates under SoftwareApplication classification in Canada and is traded on Toronto Stock Exchange. It employs 14800 people.

Be your own money manager

As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our stock analysis tools, you can find out how much better you can do when adding Open Text to your portfolios without increasing risk or reducing expected return.

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When determining whether Open Text Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Open Text's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Open Text Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Open Text Corp Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Open Text Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.
You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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.