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
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to OTEX. OTEX was compared to 276 industry peers in the Software industry. OTEX has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OTEX. OTEX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • OTEX had positive earnings in the past year.
  • In the past year OTEX had a positive cash flow from operations.
  • In the past 5 years OTEX has always been profitable.
  • In the past 5 years OTEX always reported a positive cash flow from operatings.
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 has a better Return On Assets (3.22%) than 65.58% of its industry peers.
  • OTEX has a Return On Equity of 10.79%. This is in the better half of the industry: OTEX outperforms 73.91% of its industry peers.
  • OTEX has a Return On Invested Capital of 7.50%. This is in the better half of the industry: OTEX outperforms 77.17% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for OTEX is below the industry average of 10.74%.
  • 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 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 Profit Margin of 8.42%. This is in the better half of the industry: OTEX outperforms 67.03% of its industry peers.
  • OTEX's Profit Margin has improved in the last couple of years.
  • OTEX has a better Operating Margin (20.78%) than 86.23% of its industry peers.
  • OTEX's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 72.70%, OTEX is in line with its industry, outperforming 57.61% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OTEX is destroying value.
  • Compared to 1 year ago, OTEX has less shares outstanding
  • Compared to 5 years ago, OTEX has less shares outstanding
  • OTEX has a worse debt/assets ratio than last year.
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

  • 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.
  • Looking at the Altman-Z score, with a value of 1.22, OTEX is in line with its industry, outperforming 42.03% of the companies in the same industry.
  • OTEX has a debt to FCF ratio of 7.25. This is a slightly negative value and a sign of low solvency as OTEX would need 7.25 years to pay back of all of its debts.
  • OTEX has a Debt to FCF ratio of 7.25. This is comparable to the rest of the industry: OTEX outperforms 51.09% of its industry peers.
  • OTEX has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
  • OTEX has a worse Debt to Equity ratio (1.57) than 81.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 7.25
Altman-Z 1.22
ROIC/WACC0.79
WACC9.53%
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.
  • The Current ratio of OTEX (0.94) is worse than 77.54% 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 Quick ratio of 0.94. This is in the lower half of the industry: OTEX underperforms 76.81% 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.
  • The Revenue has decreased by -4.30% in the past 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

  • Based on estimates for the next years, OTEX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.33% on average per year.
  • Based on estimates for the next years, OTEX will show a small growth in Revenue. The Revenue will grow by 4.54% on average per year.
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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
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

  • The Price/Earnings ratio is 6.19, which 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 94.57% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.19, OTEX is valued rather cheaply.
  • OTEX is valuated cheaply with a Price/Forward Earnings ratio of 5.39.
  • Based on the Price/Forward Earnings ratio, OTEX is valued cheaply inside the industry as 93.84% of the companies are valued more expensively.
  • 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 RankSector Rank
PE 6.19
Fwd PE 5.39
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 cheaply inside the industry as 92.03% of the companies are valued more expensively.
  • OTEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OTEX is cheaper than 94.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.01
EV/EBITDA 6.57
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)0.62
PEG (5Y)1.07
EPS Next 2Y9.09%
EPS Next 3Y8.33%

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

8

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.19%, OTEX is a good candidate for dividend investing.
  • The stock price of OTEX dropped by -26.99% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • OTEX's Dividend Yield is rather good when compared to the industry average which is at 0.60. OTEX pays more dividend than 96.38% of the companies in the same industry.
  • OTEX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 4.19%

5.2 History

  • On average, the dividend of OTEX grows each year by 8.34%, which is quite nice.
  • 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
OTEX Yearly Dividends per shareOTEX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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%
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 (2/13/2026, 8:00:02 PM)

After market: 24.59 0 (0%)

24.59

+0.86 (+3.62%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners82.98%
Inst Owner Change13.15%
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 RankSector 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 RankSector 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 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
WACC9.53%
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%.