OTEX:CA:TSX-Open Text Corporation

EQUITY | Application Software | Toronto Stock Exchange

Last Closing

CAD 43.8

Change

-1.40 (-3.10)%

Market Cap

CAD 11.76B

Volume

0.64M

Analyst Target

CAD 44.21
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

Open Text Corp provides software products & services. It assist organizations in finding, utilizing, & sharing business information. It is engaged in the design, development, marketing & sales of Enterprise Information Management software and solutions.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2018-12-14 )

Largest Industry Peers for Application Software

ETFs Containing OTEX:CA

N/A

Market Performance

  Market Performance vs. Industry/Classification (Application Software) Market Performance vs. Exchange (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -2.04% 65% D 76% C+
Dividend Return 1.31% 44% F 17% F
Total Return -0.72% 65% D 71% C-
Trailing 12 Months  
Capital Gain 4.48% 70% C- 90% A-
Dividend Return 1.40% 44% F 14% F
Total Return 5.89% 70% C- 88% B+
Trailing 5 Years  
Capital Gain 87.78% 61% D- 90% A-
Dividend Return 10.35% 43% F 23% F
Total Return 98.13% 56% F 89% A-
Average Annual (5 Year Horizon)  
Capital Gain 1.99% 43% F 57% F
Dividend Return 2.33% 39% F 36% F
Total Return 0.34% 11% F 6% D-
Risk Return Profile  
Volatility (Standard Deviation) 6.43% 100% F 76% C+
Risk Adjusted Return 36.20% 52% F 49% F
Market Capitalization 11.76B 88% B+ 98% N/A

Key Financial Ratios

  Ratio vs. Industry/Classification (Application Software) Ratio vs. Market (Toronto Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.50 35% 8%
Price/Book Ratio 2.42 57% 19%
Price / Cash Flow Ratio 2.76 61% 22%
Price/Free Cash Flow Ratio 12.66 52% 23%
Management Effectiveness  
Return on Equity 6.54% 67% 49%
Return on Invested Capital 8.91% 67% 64%
Return on Assets 3.12% 58% 66%
Debt to Equity Ratio 72.25% 36% 40%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector