Open Text Corporation (NASDAQ:OTEX) is on our radar right now but there could still be some opportunities on the horizon. Now trading with a market value of 10.40B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.Open Text Corporation (NASDAQ:OTEX) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For OTEX, the company currently has 941.01 million of cash on the books, which is offset by 641.66 million in current liabilities. The trend over time is important to note. In this case, the company’s debt has been falling. The company also has 0 in total assets, balanced by 1.77 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Open Text Corporation saw 812441 in free cash flow last quarter, representing a quarterly net change in cash of 259552. Perhaps most importantly where cash movements are concerned, the company saw about 876278 in net operating cash flow.
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 747.22 million in total revenues. That represents a quarterly year/year change in revenues of -0.01% in sequential terms, the OTEX saw sales grow by 0.04%.
But what about the bottom line? After all, that’s what really matters in the end. Open Text Corporation is intriguing when broken down to its core data. The cost of selling goods last quarter was 236.74 million, yielding a gross basic income of 510.48 million. For shareholders, given the total diluted outstanding shares of 271.18M, this means overall earnings per share of 260. Note, this compares with a consensus analyst forecast of 0.42 in earnings per share for its next fiscal quarterly report.