Open Text Corporation cash flow to debt ratio of 349.16% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Open Text Corporation's free cash flow has decreased 14.97% from $808.40M last year to $687.40M, signaling decreasing performance

Open Text Corporation's debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability.

Open Text Corporation's debt has decreased relative to shareholder equity from 1.69 last year to 0.06 today, signaling strengthened financials

Open Text Corporation has a net cash position, so leverage is healthy.

Open Text Corporation's interest coverage ratio of 3.31 indicates that earnings with margin can cover interest payments on company debt

Open Text Corporation's profit margin has increased (46.59%) in the last year from 8.43% to 12.36%, signaling increasing performance

Open Text Corporation's short-term liabilities of $2.62B exceed its short-term assets of $2.12B, signaling financial risk

Open Text Corporation's return on assets of 8.62% is higher than the 5.00% threshold, indicating efficient asset utilization

Open Text Corporation's return on equity of 28.29%, is higher than 15.00%, indicating good performance

Open Text Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Open Text Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Open Text Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Open Text Corporation has a free cash flow yield of 11.46%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Open Text Corporation's yearly earnings has increased 47.53% since last year from $435.87M to $643.02M, signaling increasing performance

Open Text Corporation's yearly revenue has increased 1.51% since last year from $5.17B to $5.25B, signaling increasing performance

ROIC 13.98% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Open Text Corporation's 3-year revenue CAGR of 5.00% is positive, indicating growing revenue over the past 3 years

Open Text Corporation had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Open Text Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Open Text Corporation is overvalued relative to its fair value price of 4.10 based on Discounted Cash Flow model

Open Text Corporation has an earnings yield of 18.36%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Open Text Corporation is overvalued relative to its fair value price of 21.30 based on EBITDA multiple model

Open Text Corporation has an EV/EBITDA ratio of 3.60x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Open Text Corporation is undervalued relative to its fair value price of 84.59 based on Earnings Fair Value model

Open Text Corporation has a PEG-ratio under 1 which is considered undervalued

Open Text Corporation has a price-to-book ratio of 1.53x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Open Text Corporation has a price-to-sales ratio of 0.67x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue