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OTEX vs PLXS

OTEX
Open Text Corporation
NEUTRAL
Price
$23.12
Market Cap
$5.88B
Sector
Technology
AI Confidence
80%
PLXS
Plexus Corp.
NEUTRAL
Price
$222.88
Market Cap
$5.97B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
OTEX
12.99
PLXS
34.61
Forward P/E
OTEX
5.25
PLXS
25.84
P/B Ratio
OTEX
1.42
PLXS
4.02
P/S Ratio
OTEX
1.14
PLXS
1.45
EV/EBITDA
OTEX
7.32
PLXS
20.59

Profitability

Gross Margin
OTEX
76.23%
PLXS
9.98%
Operating Margin
OTEX
23.49%
PLXS
5.07%
Profit Margin
OTEX
8.42%
PLXS
4.28%
ROE
OTEX
10.55%
PLXS
12.63%
ROA
OTEX
4.87%
PLXS
4.19%

Growth

Revenue Growth
OTEX
-0.6%
PLXS
9.6%
Earnings Growth
OTEX
-23.9%
PLXS
12.7%

Financial Health

Debt/Equity
OTEX
1.63
PLXS
0.13
Current Ratio
OTEX
0.94
PLXS
1.59
Quick Ratio
OTEX
0.82
PLXS
0.7

Dividends

Dividend Yield
OTEX
4.89%
PLXS
--
Payout Ratio
OTEX
62.87%
PLXS
0.0%

AI Verdict

OTEX NEUTRAL

OTEX presents a classic value trap profile: fundamentally cheap but lacking growth catalysts. The Piotroski F-Score of 5/9 indicates stable financial health, and the stock currently trades below its Graham Number ($25.5), suggesting a defensive margin of safety. However, this is offset by alarming growth metrics, including a -23.90% YoY earnings decline and a technical trend score of 0/100. While the dividend yield is attractive, the combination of high debt (D/E 1.63) and poor liquidity (Current Ratio 0.94) warrants caution.

Strengths
Strong Gross Margins (76.23%) indicating high product value
Attractive Dividend Yield of 4.89% with a sustainable payout ratio
Very low Forward P/E (5.25) suggesting significant undervaluation relative to earnings
Risks
Negative YoY Earnings Growth (-23.90%) and stagnant revenue growth
Weak liquidity position with Current Ratio (0.94) and Quick Ratio (0.82) below 1.0
High leverage with a Debt/Equity ratio of 1.63
PLXS NEUTRAL

PLXS exhibits exceptional financial health with a perfect Piotroski F-Score of 9/9 and a very low Debt/Equity ratio of 0.13. However, the stock is significantly overvalued, trading at $222.88, which is well above both its Graham Number ($89.63) and its growth-based Intrinsic Value ($167.76). While the earnings track record is stellar with consistent beats over 25 quarters, bearish insider sentiment and a weak technical trend suggest a potential price correction. The disconnect between the 'Buy' analyst recommendation and a target price ($200.80) that is lower than the current market price further supports a cautious stance.

Strengths
Perfect Piotroski F-Score (9/9) indicating peak financial health
Extremely low leverage with a Debt/Equity ratio of 0.13
Consistent history of earnings beats over 25 quarters
Risks
Significant valuation premium over intrinsic value ($222.88 vs $167.76)
Bearish insider activity with 13 sell transactions and 0 buys
Very weak technical trend score (10/100)

Compare Another Pair

OTEX vs PLXS: Head-to-Head Comparison

This page compares Open Text Corporation (OTEX) and Plexus Corp. (PLXS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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