OPEN TEXT CORP (OTEX) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:OTEX • CA6837151068

23.51 USD
+0.32 (+1.38%)
At close: Feb 4, 2026
23.41 USD
-0.1 (-0.43%)
Pre-Market: 2/5/2026, 4:13:25 AM
Fundamental Rating

5

Overall OTEX gets a fundamental rating of 5 out of 10. We evaluated OTEX against 278 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.
  • Each year in the past 5 years OTEX has 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

  • With a decent Return On Assets value of 3.70%, OTEX is doing good in the industry, outperforming 68.70% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 12.61%, OTEX is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
  • OTEX has a Return On Invested Capital of 7.53%. This is in the better half of the industry: OTEX outperforms 77.34% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for OTEX is below the industry average of 10.78%.
  • The 3 year average ROIC (6.00%) for OTEX is below the current ROIC(7.53%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.7%
ROE 12.61%
ROIC 7.53%
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

  • With a decent Profit Margin value of 9.60%, OTEX is doing good in the industry, outperforming 69.78% of the companies in the same industry.
  • In the last couple of years the Profit Margin of OTEX has grown nicely.
  • OTEX has a Operating Margin of 20.73%. This is amongst the best in the industry. OTEX outperforms 86.69% 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 (72.51%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of OTEX has remained more or less at the same level.
Industry RankSector Rank
OM 20.73%
PM (TTM) 9.6%
GM 72.51%
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OTEX is destroying value.
  • The number of shares outstanding for OTEX has been reduced compared to 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.
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 1.19. This is a bad value and indicates that OTEX is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 1.19, OTEX perfoms like the industry average, outperforming 42.81% of the companies in the same industry.
  • The Debt to FCF ratio of OTEX is 7.04, which is on the high side as it means it would take OTEX, 7.04 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of OTEX (7.04) is comparable to the rest of the industry.
  • OTEX has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of OTEX (1.60) is worse than 80.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.6
Debt/FCF 7.04
Altman-Z 1.19
ROIC/WACC0.8
WACC9.42%
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

  • OTEX has a Current Ratio of 0.87. 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 Current ratio of 0.87. This is amonst the worse of the industry: OTEX underperforms 82.01% of its industry peers.
  • A Quick Ratio of 0.87 indicates that OTEX may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.87, OTEX is not doing good in the industry: 81.30% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.87
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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.42%.
  • The Earnings Per Share has been growing slightly by 5.79% on average over the past years.
  • Looking at the last year, OTEX shows a decrease in Revenue. The Revenue has decreased by -7.58% in the last year.
  • The Revenue has been growing by 10.69% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.42%
EPS 3Y5.95%
EPS 5Y5.79%
EPS Q2Q%12.9%
Revenue 1Y (TTM)-7.58%
Revenue growth 3Y13.94%
Revenue growth 5Y10.69%
Sales Q2Q%1.51%

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.
  • 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 Year1.28%
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

  • Based on the Price/Earnings ratio of 5.95, the valuation of OTEX can be described as very cheap.
  • OTEX's Price/Earnings ratio is rather cheap when compared to the industry. OTEX is cheaper than 92.45% of the companies in the same industry.
  • OTEX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.25.
  • A Price/Forward Earnings ratio of 5.16 indicates a rather cheap valuation of OTEX.
  • OTEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. OTEX is cheaper than 94.60% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.50, OTEX is valued rather cheaply.
Industry RankSector Rank
PE 5.95
Fwd PE 5.16
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

  • OTEX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OTEX is cheaper than 91.73% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of OTEX indicates a rather cheap valuation: OTEX is cheaper than 95.68% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.54
EV/EBITDA 6.54
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%

More info and screens

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

7

5. Dividend

5.1 Amount

  • OTEX has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of OTEX has falen by -31.99%. 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 0.56. OTEX pays more dividend than 96.40% 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 3.81%

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 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • OTEX pays out 54.34% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of OTEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.34%
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 (2/4/2026, 8:00:03 PM)

Premarket: 23.41 -0.1 (-0.43%)

23.51

+0.32 (+1.38%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05
Earnings (Next)02-05
Inst Owners82.98%
Inst Owner Change-2.12%
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap5.92B
Revenue(TTM)5.19B
Net Income(TTM)498.12M
Analysts78
Price Target39.71 (68.91%)
Short Float %3.88%
Short Ratio8.37
Dividend
Industry RankSector Rank
Dividend Yield 3.81%
Yearly Dividend1.04
Dividend Growth(5Y)8.34%
DP54.34%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.93%
Min EPS beat(2)4.13%
Max EPS beat(2)15.74%
EPS beat(4)4
Avg EPS beat(4)11.61%
Min EPS beat(4)4.13%
Max EPS beat(4)17.92%
EPS beat(8)6
Avg EPS beat(8)6.82%
EPS beat(12)10
Avg EPS beat(12)10.63%
EPS beat(16)12
Avg EPS beat(16)8.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)-0.42%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)3
Avg Revenue beat(12)-1.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.18%
PT rev (1m)-0.48%
PT rev (3m)-11.87%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 5.95
Fwd PE 5.16
P/S 1.14
P/FCF 6.54
P/OCF 5.61
P/B 1.5
P/tB N/A
EV/EBITDA 6.54
EPS(TTM)3.95
EY16.8%
EPS(NY)4.56
Fwd EY19.39%
FCF(TTM)3.59
FCFY15.29%
OCF(TTM)4.19
OCFY17.83%
SpS20.58
BVpS15.68
TBVpS-21.2
PEG (NY)0.6
PEG (5Y)1.03
Graham Number37.33
Profitability
Industry RankSector Rank
ROA 3.7%
ROE 12.61%
ROCE 9.76%
ROIC 7.53%
ROICexc 8.36%
ROICexgc 131.42%
OM 20.73%
PM (TTM) 9.6%
GM 72.51%
FCFM 17.46%
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 1.6
Debt/FCF 7.04
Debt/EBITDA 3.7
Cap/Depr 23.51%
Cap/Sales 2.9%
Interest Coverage 3.06
Cash Conversion 61.57%
Profit Quality 181.84%
Current Ratio 0.87
Quick Ratio 0.87
Altman-Z 1.19
F-Score6
WACC9.42%
ROIC/WACC0.8
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)-3.42%
EPS 3Y5.95%
EPS 5Y5.79%
EPS Q2Q%12.9%
EPS Next Y9.99%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.58%
Revenue growth 3Y13.94%
Revenue growth 5Y10.69%
Sales Q2Q%1.51%
Revenue Next Year1.28%
Revenue Next 2Y1.54%
Revenue Next 3Y1.48%
Revenue Next 5Y4.54%
EBIT growth 1Y2.5%
EBIT growth 3Y14.51%
EBIT growth 5Y11.45%
EBIT Next Year14.34%
EBIT Next 3Y7.75%
EBIT Next 5YN/A
FCF growth 1Y59.09%
FCF growth 3Y-8.21%
FCF growth 5Y-4.86%
OCF growth 1Y52.11%
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 5.95 and the Price/Book (PB) ratio is 1.5.


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 54.34%.