OTEX - Open Text: Buy The Dip Post Earnings After Solid Q2 Results
2024-02-05 17:14:37 ET
Summary
- Open Text reported Q2 2024 results, causing a 2% drop in shares despite an improvement across all metrics.
- The company has historically had a strong track record of producing high returns for shareholders.
- Concerns remain about its elevated debt position after a record acquisition announced a year ago but Open Text is now trading at about half the valuation of its peer group.
Please note all $ figures in , not , unless otherwise noted.
Investment Thesis
Open Text ( OTEX ) just reported Q2 2024 results on February 1st and shares are currently down about 2% following the results. In my view, the company seems to be executing on all of its key metrics and I believe the valuation looks attractive enough for new investors to start a position in this Canadian compounder. As a dominant player in the cloud software space (specifically in enterprise information management), the company has historically produced great returns for shareholders. With a market leading position, the company has been on the right track to grow sales at an attractive rate, maintain high margins and this quarter was a step in the right direction....
Open Text: Buy The Dip Post Earnings After Solid Q2 Results