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Is this Large Market Cap Stock target price reasonable for Open Text Corporation (NASDAQ:OTEX)?

The company in question is, Open Text Corporation (NASDAQ:OTEX) currently with a stock price of 64.41 (0.97% today). The market cap for Open Text Corporation is 7807.9, and is in the sector Technology, and Application Software industry. The target price for Open Text Corporation is 72.62. Currently Open Text Corporation is trading with a P/E of 27.35, and a forward P/E of 14.69. Average volume for Open Text Corporation is 261.74 and so far today it is 86126.

Performance in the last year for Open Text Corporation has been 38.09%. For EPS growth, Open Text Corporation has seen a growth of 22.30%, and is looking to grow in the next year to 7.13%. More long term stats show that EPS growth has been 17.10% over the last five years and could be 8.95% for the next five years. Open Text Corporation has seen sales growth quarter over quarter at 0.20%, with EPS growth quarter over quarter at 26.50%. The 20-day simple moving average is 1.08%, with the 200-day simple moving average coming to 15.26%.

Since the IPO date for Open Text Corporation on the 1/24/1996, Open Text Corporation has seen performance year to date to be 34.67%. With Open Text Corporation trading at 64.41, the dividend yield is 1.44%, and the EPS is 2.33.

So could Open Text Corporation, be undervalued? Well as said before P/E is 27.35. The PEG is 3.06, P/S is 4.28 and the P/B is at 3.91. The P/cash is 6.03, with P/free cash flow at 22.19.

Open Text Corporation ability to deal with debt shows that the current ratio is 2.5, and the quick ratio is 2.5. This is with long term debt/equity at 1.08, and total debt/equity at 1.08.

In terms of margins, Open Text Corporation has a gross margin of 68.50%, an operating margin of 20.20% and a profit margin of 15.60%.Payout ratio for Open Text Corporation is 35.40%. Return on assets come to 6.30% with return on investment coming to 8.80%.

Insider ownership for Open Text Corporation, is at 2.30% and institutional ownership comes to 95.30%. Outstanding shares are at 122.4. While shares float is 119.03. The float short is currently 2.98%, and short ratio is 13.53.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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