Open Text Underrated
Open Text Corporation provides software products and services to assist organizations in finding, utilizing, and sharing business information. The Company’s products and services are enterprise content management (ECM), facilitates with technologies that manage information lifecycle; business process management, facilitates software capabilities for analyzing, automating, monitoring and optimizing structured business processes outside the scope of existing enterprise systems. The Company also offers secure mobile access and advanced document viewing, mark-up and collaboration.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'OTEX'" symbolprices="114" div_align="right"]
Open Text is a top quality software company that has consistently grown earnings for the last 15 years. They started to pay dividends in early 2013 and have often been the subject of takeover rumors.
We like the high growth rate in earnings relative to their low PE multiple (this is seen in the P/E/G ratio which is less than 1 and indicates good value).
Purple Chips 12 -18 month target: $USD 64.00
LOW VALUATION IN OPEN TEXT AT $55.11 (OTEX-US, $55.00) FULL POSITION
PURPLE CHIPS TARGET: $64.00 POSITION SIZE: FULL (5.0%) P/E: 12.2X DIV: $.69 (1.24%) MKT CAP: $6.7B Debt:$850M RETURN ON CAPITAL: 104.3% EARNINGS YIELD: 6.0% 5 YR EPS Growth rate*:19.2% P/E/G Ratio: 0.64X EPS: $3.86 2016 EST.: $4.25 2017 EST.: $4.74
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
