Open Text Corporation (OTEX) Reaches New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Open Text Corporation ( OTEX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Open Text Corporation as such a stock due to the following factors:

  • OTEX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.2 million.
  • OTEX has traded 4,675 shares today.
  • OTEX is trading at a new lifetime high.

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More details on OTEX:

check out lse:sdl as comp. 600 mm pound mkt cap ecm company based in Holland. The stock currently has a dividend yield of 1.2%. OTEX has a PE ratio of 39.9. Currently there are 8 analysts that rate Open Text Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Open Text Corporation has been 345,300 shares per day over the past 30 days. Open Text has a market cap of $6.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.46 and a short float of 7.4% with 13.61 days to cover. Shares are up 12% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Open Text Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, OTEX's share price has jumped by 76.23%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, OTEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for OPEN TEXT CORP is currently very high, coming in at 73.89%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, OTEX's net profit margin of 14.71% significantly trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.39, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.41 is sturdy.
  • OPEN TEXT CORP's earnings per share declined by 13.5% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, OPEN TEXT CORP increased its bottom line by earning $2.52 versus $2.14 in the prior year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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