OPEN TEXT CORP (OTEX) Stock Fundamental Analysis

NASDAQ:OTEX • CA6837151068

23.72 USD
-1.04 (-4.2%)
At close: Feb 23, 2026
23.27 USD
-0.45 (-1.9%)
After Hours: 2/23/2026, 8:07:52 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall OTEX gets a fundamental rating of 5 out of 10. We evaluated OTEX against 274 industry peers in the Software industry. OTEX scores excellent on profitability, but there are concerns on its financial health. OTEX may be a bit undervalued, certainly considering the very reasonable score on growth OTEX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year OTEX was profitable.
  • In the past year OTEX had a positive cash flow from operations.
  • OTEX had positive earnings in each of the past 5 years.
  • Each year in the past 5 years OTEX had a positive operating cash flow.
OTEX Yearly Net Income VS EBIT VS OCF VS FCFOTEX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • OTEX's Return On Assets of 3.22% is fine compared to the rest of the industry. OTEX outperforms 65.69% of its industry peers.
  • The Return On Equity of OTEX (10.79%) is better than 73.72% of its industry peers.
  • OTEX's Return On Invested Capital of 7.50% is fine compared to the rest of the industry. OTEX outperforms 77.37% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for OTEX is below the industry average of 10.76%.
  • The 3 year average ROIC (6.00%) for OTEX is below the current ROIC(7.50%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.22%
ROE 10.79%
ROIC 7.5%
ROA(3y)2.44%
ROA(5y)2.89%
ROE(3y)8.64%
ROE(5y)8.67%
ROIC(3y)6%
ROIC(5y)6.21%
OTEX Yearly ROA, ROE, ROICOTEX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • OTEX has a better Profit Margin (8.42%) than 67.52% of its industry peers.
  • OTEX's Profit Margin has improved in the last couple of years.
  • OTEX has a Operating Margin of 20.78%. This is amongst the best in the industry. OTEX outperforms 86.50% of its industry peers.
  • In the last couple of years the Operating Margin of OTEX has remained more or less at the same level.
  • OTEX has a Gross Margin of 72.70%. This is comparable to the rest of the industry: OTEX outperforms 58.03% of its industry peers.
  • OTEX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.78%
PM (TTM) 8.42%
GM 72.7%
OM growth 3Y0.5%
OM growth 5Y0.68%
PM growth 3Y-9.47%
PM growth 5Y2.29%
GM growth 3Y1.26%
GM growth 5Y1.3%
OTEX Yearly Profit, Operating, Gross MarginsOTEX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • OTEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • OTEX has less shares outstanding than it did 1 year ago.
  • OTEX has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, OTEX has a worse debt to assets ratio.
OTEX Yearly Shares OutstandingOTEX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
OTEX Yearly Total Debt VS Total AssetsOTEX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • OTEX has an Altman-Z score of 1.22. This is a bad value and indicates that OTEX is not financially healthy and even has some risk of bankruptcy.
  • OTEX has a Altman-Z score (1.22) which is in line with its industry peers.
  • The Debt to FCF ratio of OTEX is 7.25, which is on the high side as it means it would take OTEX, 7.25 years of fcf income to pay off all of its debts.
  • OTEX's Debt to FCF ratio of 7.25 is in line compared to the rest of the industry. OTEX outperforms 51.09% of its industry peers.
  • A Debt/Equity ratio of 1.57 is on the high side and indicates that OTEX has dependencies on debt financing.
  • OTEX has a Debt to Equity ratio of 1.57. This is amonst the worse of the industry: OTEX underperforms 81.02% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 7.25
Altman-Z 1.22
ROIC/WACC0.79
WACC9.44%
OTEX Yearly LT Debt VS Equity VS FCFOTEX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.94 indicates that OTEX may have some problems paying its short term obligations.
  • OTEX has a Current ratio of 0.94. This is in the lower half of the industry: OTEX underperforms 77.01% of its industry peers.
  • A Quick Ratio of 0.94 indicates that OTEX may have some problems paying its short term obligations.
  • OTEX has a Quick ratio of 0.94. This is in the lower half of the industry: OTEX underperforms 76.64% of its industry peers.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.94
OTEX Yearly Current Assets VS Current LiabilitesOTEX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • OTEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.25%.
  • OTEX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.79% yearly.
  • OTEX shows a decrease in Revenue. In the last year, the revenue decreased by -4.30%.
  • Measured over the past years, OTEX shows a quite strong growth in Revenue. The Revenue has been growing by 10.69% on average per year.
EPS 1Y (TTM)0.25%
EPS 3Y5.95%
EPS 5Y5.79%
EPS Q2Q%1.8%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y13.94%
Revenue growth 5Y10.69%
Sales Q2Q%-0.58%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.33% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y9.99%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue Next Year1.32%
Revenue Next 2Y1.18%
Revenue Next 3Y1.13%
Revenue Next 5Y4.54%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
OTEX Yearly Revenue VS EstimatesOTEX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2030 2031 2B 4B 6B
OTEX Yearly EPS VS EstimatesOTEX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 5.97, the valuation of OTEX can be described as very cheap.
  • Based on the Price/Earnings ratio, OTEX is valued cheaper than 94.16% of the companies in the same industry.
  • OTEX is valuated cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 5.20, the valuation of OTEX can be described as very cheap.
  • 93.80% of the companies in the same industry are more expensive than OTEX, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of OTEX to the average of the S&P500 Index (27.75), we can say OTEX is valued rather cheaply.
Industry RankSector Rank
PE 5.97
Fwd PE 5.2
OTEX Price Earnings VS Forward Price EarningsOTEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, OTEX is valued cheaper than 91.97% of the companies in the same industry.
  • OTEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OTEX is cheaper than 95.62% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.77
EV/EBITDA 6.6
OTEX Per share dataOTEX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of OTEX may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)1.03
EPS Next 2Y9.09%
EPS Next 3Y8.33%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.99%, OTEX has a reasonable but not impressive dividend return.
  • In the last 3 months the price of OTEX has falen by -29.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • OTEX's Dividend Yield is rather good when compared to the industry average which is at 0.61. OTEX pays more dividend than 96.35% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, OTEX pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.99%

5.2 History

  • The dividend of OTEX is nicely growing with an annual growth rate of 8.34%!
  • OTEX has been paying a dividend for at least 10 years, so it has a reliable track record.
  • OTEX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.34%
Div Incr Years11
Div Non Decr Years11
OTEX Yearly Dividends per shareOTEX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • OTEX pays out 62.08% of its income as dividend. This is not a sustainable payout ratio.
  • OTEX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.08%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
OTEX Yearly Income VS Free CF VS DividendOTEX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
OTEX Dividend Payout.OTEX Dividend Payout, showing the Payout Ratio.OTEX Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

OPEN TEXT CORP

NASDAQ:OTEX (2/23/2026, 8:07:52 PM)

After market: 23.27 -0.45 (-1.9%)

23.72

-1.04 (-4.2%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners82.98%
Inst Owner Change12.25%
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap5.94B
Revenue(TTM)5.18B
Net Income(TTM)436.35M
Analysts78
Price Target40.28 (69.81%)
Short Float %3.76%
Short Ratio5.4
Dividend
Industry RankSector Rank
Dividend Yield 3.99%
Yearly Dividend1.04
Dividend Growth(5Y)8.34%
DP62.08%
Div Incr Years11
Div Non Decr Years11
Ex-Date03-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.64%
Min EPS beat(2)4.13%
Max EPS beat(2)9.15%
EPS beat(4)4
Avg EPS beat(4)9.41%
Min EPS beat(4)4.13%
Max EPS beat(4)15.74%
EPS beat(8)6
Avg EPS beat(8)7.76%
EPS beat(12)10
Avg EPS beat(12)10.45%
EPS beat(16)13
Avg EPS beat(16)8.72%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.97%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)0.97%
Revenue beat(8)1
Avg Revenue beat(8)-1.8%
Revenue beat(12)3
Avg Revenue beat(12)-1.07%
Revenue beat(16)4
Avg Revenue beat(16)-1.04%
PT rev (1m)1.44%
PT rev (3m)-10.06%
EPS NQ rev (1m)-7.86%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.3%
Valuation
Industry RankSector Rank
PE 5.97
Fwd PE 5.2
P/S 1.15
P/FCF 6.77
P/OCF 5.79
P/B 1.47
P/tB N/A
EV/EBITDA 6.6
EPS(TTM)3.97
EY16.74%
EPS(NY)4.56
Fwd EY19.22%
FCF(TTM)3.51
FCFY14.78%
OCF(TTM)4.1
OCFY17.27%
SpS20.67
BVpS16.14
TBVpS-20.43
PEG (NY)0.6
PEG (5Y)1.03
Graham Number37.96
Profitability
Industry RankSector Rank
ROA 3.22%
ROE 10.79%
ROCE 9.73%
ROIC 7.5%
ROICexc 8.47%
ROICexgc 131.7%
OM 20.78%
PM (TTM) 8.42%
GM 72.7%
FCFM 16.96%
ROA(3y)2.44%
ROA(5y)2.89%
ROE(3y)8.64%
ROE(5y)8.67%
ROIC(3y)6%
ROIC(5y)6.21%
ROICexc(3y)6.7%
ROICexc(5y)7.26%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.77%
ROCE(5y)8.05%
ROICexgc growth 3Y40.72%
ROICexgc growth 5Y10.07%
ROICexc growth 3Y2.2%
ROICexc growth 5Y2.95%
OM growth 3Y0.5%
OM growth 5Y0.68%
PM growth 3Y-9.47%
PM growth 5Y2.29%
GM growth 3Y1.26%
GM growth 5Y1.3%
F-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 7.25
Debt/EBITDA 3.7
Cap/Depr 23.26%
Cap/Sales 2.86%
Interest Coverage 3.2
Cash Conversion 59.91%
Profit Quality 201.32%
Current Ratio 0.94
Quick Ratio 0.94
Altman-Z 1.22
F-Score6
WACC9.44%
ROIC/WACC0.79
Cap/Depr(3y)20.3%
Cap/Depr(5y)18.32%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.57%
Profit Quality(3y)255.78%
Profit Quality(5y)250.53%
High Growth Momentum
Growth
EPS 1Y (TTM)0.25%
EPS 3Y5.95%
EPS 5Y5.79%
EPS Q2Q%1.8%
EPS Next Y9.99%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y13.94%
Revenue growth 5Y10.69%
Sales Q2Q%-0.58%
Revenue Next Year1.32%
Revenue Next 2Y1.18%
Revenue Next 3Y1.13%
Revenue Next 5Y4.54%
EBIT growth 1Y2.28%
EBIT growth 3Y14.51%
EBIT growth 5Y11.45%
EBIT Next Year14.34%
EBIT Next 3Y7.75%
EBIT Next 5YN/A
FCF growth 1Y23.42%
FCF growth 3Y-8.21%
FCF growth 5Y-4.86%
OCF growth 1Y20.83%
OCF growth 3Y-5.42%
OCF growth 5Y-2.74%

OPEN TEXT CORP / OTEX FAQ

What is the ChartMill fundamental rating of OPEN TEXT CORP (OTEX) stock?

ChartMill assigns a fundamental rating of 5 / 10 to OTEX.


What is the valuation status of OPEN TEXT CORP (OTEX) stock?

ChartMill assigns a valuation rating of 9 / 10 to OPEN TEXT CORP (OTEX). This can be considered as Undervalued.


Can you provide the profitability details for OPEN TEXT CORP?

OPEN TEXT CORP (OTEX) has a profitability rating of 7 / 10.


What are the PE and PB ratios of OPEN TEXT CORP (OTEX) stock?

The Price/Earnings (PE) ratio for OPEN TEXT CORP (OTEX) is 5.97 and the Price/Book (PB) ratio is 1.47.


Is the dividend of OPEN TEXT CORP sustainable?

The dividend rating of OPEN TEXT CORP (OTEX) is 7 / 10 and the dividend payout ratio is 62.08%.