OPEN TEXT CORP (OTEX) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:OTEX • CA6837151068

22.79 USD
-0.72 (-3.06%)
At close: Feb 5, 2026
23.29 USD
+0.5 (+2.19%)
Pre-Market: 2/6/2026, 8:50:40 AM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to OTEX. OTEX was compared to 278 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 Finally 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.
  • OTEX had a positive operating cash flow in the past year.
  • Each year in the past 5 years OTEX has been profitable.
  • OTEX had a positive operating cash flow in each of the past 5 years.
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 (3.70%) than 68.70% of its industry peers.
  • OTEX has a better Return On Equity (12.61%) than 75.90% of its industry peers.
  • OTEX's Return On Invested Capital of 7.53% is fine compared to the rest of the industry. OTEX outperforms 77.34% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for OTEX is below the industry average of 10.78%.
  • The last Return On Invested Capital (7.53%) for OTEX is above the 3 year average (6.00%), which is a sign of increasing profitability.
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

  • OTEX's Profit Margin of 9.60% is fine compared to the rest of the industry. OTEX outperforms 69.78% of its industry peers.
  • OTEX's Profit Margin has improved in the last couple of years.
  • OTEX has a better Operating Margin (20.73%) than 86.69% of its industry peers.
  • OTEX's Operating Margin has been stable in the last couple of years.
  • With a Gross Margin value of 72.51%, OTEX perfoms like the industry average, outperforming 57.91% of the companies in the same industry.
  • OTEX's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.73%
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OTEX is destroying value.
  • The number of shares outstanding for OTEX has been reduced compared to 1 year ago.
  • Compared to 5 years ago, OTEX has less shares outstanding
  • 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 1.18. 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 of 1.18. This is comparable to the rest of the industry: OTEX outperforms 44.24% of its industry peers.
  • 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.
  • OTEX has a Debt to FCF ratio (7.04) which is in line with its industry peers.
  • OTEX has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.60, OTEX is not doing good in the industry: 80.94% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.6
Debt/FCF 7.04
Altman-Z 1.18
ROIC/WACC0.81
WACC9.34%
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 0.87 indicates that OTEX may have some problems paying 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.
  • OTEX has a Quick 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.
  • The Quick ratio of OTEX (0.87) is worse than 81.30% of its industry peers.
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 small growth in Earnings Per Share. In the last year, the EPS has grown by 0.25%.
  • The Earnings Per Share has been growing slightly by 5.79% on average over the past years.
  • OTEX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.42%.
  • 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)-10.42%
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.
  • 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

  • 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.
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

  • A Price/Earnings ratio of 5.74 indicates a rather cheap valuation of OTEX.
  • OTEX's Price/Earnings ratio is rather cheap when compared to the industry. OTEX is cheaper than 93.88% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.67. OTEX is valued rather cheaply when compared to this.
  • OTEX is valuated cheaply with a Price/Forward Earnings ratio of 5.00.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of OTEX indicates a rather cheap valuation: OTEX is cheaper than 94.24% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. OTEX is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.74
Fwd PE 5
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

  • 91.01% of the companies in the same industry are more expensive than OTEX, based on the Enterprise Value to EBITDA ratio.
  • 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 6.34
EV/EBITDA 6.43
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.
  • OTEX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)0.99
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 4.34%, OTEX is a good candidate for dividend investing.
  • The stock price of OTEX dropped by -34.08% 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.
  • Compared to an average industry Dividend Yield of 0.56, OTEX pays a better dividend. On top of this OTEX pays more dividend than 96.76% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, OTEX pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.34%

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 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

  • 54.34% of the earnings are spent on dividend by OTEX. 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 (2/5/2026, 8:00:02 PM)

Premarket: 23.29 +0.5 (+2.19%)

22.79

-0.72 (-3.06%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners82.98%
Inst Owner Change-2.12%
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap5.74B
Revenue(TTM)5.17B
Net Income(TTM)498.12M
Analysts78
Price Target40.28 (76.74%)
Short Float %3.88%
Short Ratio8.37
Dividend
Industry RankSector Rank
Dividend Yield 4.34%
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 5.74
Fwd PE 5
P/S 1.11
P/FCF 6.34
P/OCF 5.44
P/B 1.45
P/tB N/A
EV/EBITDA 6.43
EPS(TTM)3.97
EY17.42%
EPS(NY)4.56
Fwd EY20%
FCF(TTM)3.59
FCFY15.77%
OCF(TTM)4.19
OCFY18.39%
SpS20.58
BVpS15.68
TBVpS-21.2
PEG (NY)0.57
PEG (5Y)0.99
Graham Number37.42
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 1.18
F-Score6
WACC9.34%
ROIC/WACC0.81
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)-10.42%
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 1Y2.5%
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 5.74 and the Price/Book (PB) ratio is 1.45.


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%.