OPEN TEXT CORP (OTEX) Stock Fundamental Analysis
NASDAQ:OTEX • CA6837151068
24.59 USD
+0.86 (+3.62%)
At close: Feb 13, 2026
24.59 USD
0 (0%)
After Hours: 2/13/2026, 8:00:02 PM
We assign a fundamental rating of 5 out of 10 to OTEX. OTEX was compared to 276 industry peers in the Software industry. While OTEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. OTEX is valued quite cheap, while showing a decent growth score. This is a good combination! OTEX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year OTEX was profitable.
- OTEX had a positive operating cash flow in the past year.
- In the past 5 years OTEX has always been profitable.
- In the past 5 years OTEX always reported a positive cash flow from operatings.
1.2 Ratios
- OTEX has a better Return On Assets (3.22%) than 66.79% of its industry peers.
- OTEX has a Return On Equity of 10.79%. This is in the better half of the industry: OTEX outperforms 74.37% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.50%, OTEX is in the better half of the industry, outperforming 77.26% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for OTEX is below the industry average of 10.91%.
- The last Return On Invested Capital (7.50%) for OTEX is above the 3 year average (6.00%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- OTEX's Profit Margin of 8.42% is fine compared to the rest of the industry. OTEX outperforms 68.23% of its industry peers.
- In the last couple of years the Profit Margin of OTEX has grown nicely.
- OTEX has a better Operating Margin (20.78%) than 86.64% 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's Gross Margin of 72.70% is in line compared to the rest of the industry. OTEX outperforms 57.76% of its industry peers.
- OTEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- The debt/assets ratio for OTEX is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.22, we must say that OTEX is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of OTEX (1.22) is comparable to the rest of the industry.
- 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 has a Debt to FCF ratio (7.25) which is comparable to the rest of the industry.
- OTEX has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.57, OTEX is doing worse than 80.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 7.25 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.79
WACC9.53%
2.3 Liquidity
- OTEX has a Current Ratio of 0.94. This is a bad value and indicates that OTEX is not financially healthy enough and could expect problems in meeting its short term obligations.
- OTEX has a worse Current ratio (0.94) than 77.62% of its industry peers.
- OTEX has a Quick Ratio of 0.94. This is a bad value and indicates that OTEX is not financially healthy enough and could expect problems in meeting its short term obligations.
- OTEX has a worse Quick ratio (0.94) than 76.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
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%.
- Measured over the past 5 years, OTEX shows a small growth in Earnings Per Share. The EPS has been growing by 5.79% on average per year.
- Looking at the last year, OTEX shows a decrease in Revenue. The Revenue has decreased by -4.30% in the last year.
- 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
- OTEX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.33% yearly.
- OTEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.54% yearly.
EPS Next Y9.99%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue Next Year1.28%
Revenue Next 2Y1.54%
Revenue Next 3Y1.48%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.19 indicates a rather cheap valuation of OTEX.
- Compared to the rest of the industry, the Price/Earnings ratio of OTEX indicates a rather cheap valuation: OTEX is cheaper than 94.58% of the companies listed in the same industry.
- OTEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.68.
- OTEX is valuated cheaply with a Price/Forward Earnings ratio of 5.39.
- 93.86% of the companies in the same industry are more expensive than OTEX, based on the Price/Forward Earnings ratio.
- OTEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.39 |
4.2 Price Multiples
- 92.06% of the companies in the same industry are more expensive than OTEX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, OTEX is valued cheaply inside the industry as 94.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.01 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
- OTEX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- OTEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)1.07
EPS Next 2Y9.09%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.19%, OTEX is a good candidate for dividend investing.
- In the last 3 months the price of OTEX has falen by -26.99%. 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 0.60. OTEX pays more dividend than 96.39% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, OTEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
- The dividend of OTEX is nicely growing with an annual growth rate of 8.34%!
- OTEX has paid a dividend for at least 10 years, which is a reliable track record.
- OTEX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.34%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 62.08% of the earnings are spent on dividend by OTEX. This is not a sustainable payout ratio.
- The dividend of OTEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.08%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
24.59
+0.86 (+3.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners82.98%
Inst Owner Change-82.81%
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap6.16B
Revenue(TTM)5.18B
Net Income(TTM)436.35M
Analysts78
Price Target40.28 (63.81%)
Short Float %3.88%
Short Ratio8.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend1.04
Dividend Growth(5Y)8.34%
DP62.08%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
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)0.95%
PT rev (3m)-10.05%
EPS NQ rev (1m)-5.88%
EPS NQ rev (3m)-6.29%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.19 | ||
| Fwd PE | 5.39 | ||
| P/S | 1.19 | ||
| P/FCF | 7.01 | ||
| P/OCF | 6 | ||
| P/B | 1.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.57 |
EPS(TTM)3.97
EY16.14%
EPS(NY)4.56
Fwd EY18.54%
FCF(TTM)3.51
FCFY14.26%
OCF(TTM)4.1
OCFY16.66%
SpS20.67
BVpS16.14
TBVpS-20.43
PEG (NY)0.62
PEG (5Y)1.07
Graham Number37.96
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC9.53%
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 Year1.28%
Revenue Next 2Y1.54%
Revenue Next 3Y1.48%
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 6.19 and the Price/Book (PB) ratio is 1.52.
Is the dividend of OPEN TEXT CORP sustainable?
The dividend rating of OPEN TEXT CORP (OTEX) is 8 / 10 and the dividend payout ratio is 62.08%.