Open Text Corporation
Find Ratings ReportsOPEN TEXT CORP's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. OPEN TEXT CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.21% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 1534.87 | 897.44 |
EBITDA ($mil) | 526.16 | 312.14 |
EBIT ($mil) | 308.03 | 194.97 |
Net Income ($mil) | 37.68 | 258.49 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 1003.13 | 2820.93 |
Total Assets ($mil) | 16443.26 | 11218.21 |
Total Debt ($mil) | 8851.88 | 5450.27 |
Equity ($mil) | 4028.91 | 4120.16 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 78.18 | 75.39 |
EBITDA Margin | 34.28 | 34.78 |
Operating Margin | 20.07 | 21.73 |
Sales Turnover | 0.35 | 0.32 |
Return on Assets | 0.77 | 2.83 |
Return on Equity | 3.16 | 7.73 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.38 | 2.31 |
Debt/Capital | 0.69 | 0.57 |
Interest Expense | 141.36 | 52.42 |
Interest Coverage | 2.18 | 3.72 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 267.46 | 266.94 |
Div / share | 0.25 | 0.24 |
EPS | 0.14 | 0.96 |
Book value / share | 15.06 | 15.43 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 562743.0 | 555100.0 |
HOLD. OPEN TEXT CORP's P/E ratio indicates a significant premium compared to an average of 61.20 for the Comp Infrastructure, Data, Web Hosting, Related Se subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.57 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.55. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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OTEX 82.47 | Peers 61.20 | OTEX 12.20 | Peers 28.25 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. OTEX is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. OTEX is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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OTEX 7.61 | Peers 18.10 | OTEX 0.11 | Peers 0.46 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. OTEX is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. OTEX trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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OTEX 2.57 | Peers 9.55 | OTEX -60.51 | Peers 211.27 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. OTEX is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, OTEX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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OTEX 1.82 | Peers 6.93 | OTEX 61.16 | Peers 11.39 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. OTEX is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. OTEX has a sales growth rate that significantly exceeds its peers. |
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