Open Text Corp Stock Buy Hold or Sell Recommendation
| OTEX Stock | CAD 48.18 0.30 0.63% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Open Text Corp is 'Hold'. Macroaxis provides Open Text buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding OTEX positions. The advice algorithm takes into account all of Open Text's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Open Text's buy or sell advice are summarized below:
Real Value 50.65 | Hype Value 47.93 | Market Value 48.18 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Open Text Corp given historical horizon and risk tolerance towards Open Text. When Macroaxis issues a 'buy' or 'sell' recommendation for Open Text Corp, the advice is generated through an automated system that utilizes algorithms and statistical models.
Open |
Execute Open Text Buy or Sell Advice
The Open recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Open Text Corp. Macroaxis does not own or have any residual interests in Open Text Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Open Text's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Open Text Trading Alerts and Improvement Suggestions
| Open Text Corp generated a negative expected return over the last 90 days | |
| Over 78.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Mackenzie Financial Corp Cuts Stock Position in Open Text Co. - MarketBeat |
Open Text Returns Distribution Density
The distribution of Open Text's historical returns is an attempt to chart the uncertainty of Open Text's future price movements. The chart of the probability distribution of Open Text daily returns describes the distribution of returns around its average expected value. We use Open Text Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Open Text returns is essential to provide solid investment advice for Open Text.
| Mean Return | -0.15 | Value At Risk | -2.64 | Potential Upside | 2.28 | Standard Deviation | 1.51 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Open Text historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Open Text Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 753.7M | (87.5M) | 86.1M | (462.0M) | (531.3M) | (504.7M) | |
| Free Cash Flow | 881.8M | 812.4M | 888.7M | 655.4M | 753.7M | 791.4M | |
| Depreciation | 551.6M | 520.6M | 504.0M | 657.4M | 756.0M | 793.8M | |
| Capital Expenditures | 72.7M | 63.7M | 93.1M | 123.8M | 142.4M | 149.5M | |
| Net Income | 234.4M | 310.9M | 397.3M | 150.4M | 172.9M | 166.9M | |
| End Period Cash Flow | 1.7B | 1.6B | 1.7B | 1.2B | 1.4B | 1.5B | |
| Other Non Cash Items | 29.3M | (49.0M) | (1.3M) | 16.8M | 19.3M | 20.2M | |
| Dividends Paid | 188.7M | 210.7M | 237.7M | 259.5M | 298.5M | 161.1M | |
| Investments | (1.5B) | (68.8M) | (971.0M) | (5.7B) | (5.1B) | (4.8B) | |
| Net Borrowings | 1.4B | (610M) | 640M | 4.7B | 5.4B | 5.7B | |
| Change To Netincome | 105.7M | 71.7M | 27.0M | 162.0M | 186.3M | 195.6M |
Open Text Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Open Text or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Open Text's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Open stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.25 | |
β | Beta against NYSE Composite | 1.25 | |
σ | Overall volatility | 1.48 | |
Ir | Information ratio | -0.16 |
Open Text Volatility Alert
Open Text Corp exhibits very low volatility with skewness of -0.13 and kurtosis of -0.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Open Text's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Open Text's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Open Text Fundamentals Vs Peers
Comparing Open Text's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Open Text's direct or indirect competition across all of the common fundamentals between Open Text and the related equities. This way, we can detect undervalued stocks with similar characteristics as Open Text or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Open Text's fundamental indicators could also be used in its relative valuation, which is a method of valuing Open Text by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Open Text to competition |
| Fundamentals | Open Text | Peer Average |
| Return On Equity | 0.0313 | -0.31 |
| Return On Asset | 0.0385 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | 0.20 % | (5.51) % |
| Current Valuation | 20.65 B | 16.62 B |
| Shares Outstanding | 267.64 M | 571.82 M |
| Shares Owned By Insiders | 2.22 % | 10.09 % |
| Shares Owned By Institutions | 77.75 % | 39.21 % |
| Number Of Shares Shorted | 1.81 M | 4.71 M |
| Price To Earning | 97.96 X | 28.72 X |
| Price To Book | 2.37 X | 9.51 X |
| Price To Sales | 2.30 X | 11.42 X |
| Revenue | 4.48 B | 9.43 B |
| Gross Profit | 3.39 B | 27.38 B |
| EBITDA | 1.24 B | 3.9 B |
| Net Income | 150.38 M | 570.98 M |
| Cash And Equivalents | 1.23 B | 2.7 B |
| Cash Per Share | 6.39 X | 5.01 X |
| Total Debt | 320.85 M | 5.32 B |
| Debt To Equity | 1.11 % | 48.70 % |
| Current Ratio | 1.56 X | 2.16 X |
| Book Value Per Share | 15.06 X | 1.93 K |
| Cash Flow From Operations | 779.21 M | 971.22 M |
| Short Ratio | 2.54 X | 4.00 X |
| Earnings Per Share | 0.67 X | 3.12 X |
| Price To Earnings To Growth | 1.15 X | 4.89 X |
| Target Price | 43.91 | |
| Number Of Employees | 23.6 K | 18.84 K |
| Beta | 1.1 | -0.15 |
| Market Capitalization | 12.81 B | 19.03 B |
| Total Asset | 17.09 B | 29.47 B |
| Retained Earnings | 2.05 B | 9.33 B |
| Working Capital | (944.38 M) | 1.48 B |
Open Text Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Open . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Open Text Buy or Sell Advice
When is the right time to buy or sell Open Text Corp? Buying financial instruments such as Open Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 4.5B | 5.1B | 5.4B | Total Assets | 10.2B | 19.7B | 20.6B |
Use Investing Ideas to Build Portfolios
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 Communication Thematic Idea Now
Communication
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Communication theme has 61 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 Communication Theme or any other thematic opportunities.
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Check out Open Text Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Complementary 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.
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