OPEN TEXT CORP (OTEX) Fundamental Analysis & Valuation

NASDAQ:OTEX • CA6837151068

Current stock price

22.52 USD
-0.02 (-0.09%)
At close:
22.52 USD
0 (0%)
After Hours:

This OTEX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. OTEX Profitability Analysis

1.1 Basic Checks

  • OTEX had positive earnings in the past year.
  • OTEX had a positive operating cash flow in the past year.
  • OTEX had positive earnings in each of the past 5 years.
  • 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

  • The Return On Assets of OTEX (3.22%) is better than 69.09% of its industry peers.
  • With a decent Return On Equity value of 10.79%, OTEX is doing good in the industry, outperforming 76.36% of the companies in the same industry.
  • The Return On Invested Capital of OTEX (7.50%) is better than 78.55% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for OTEX is below the industry average of 10.92%.
  • 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 70.55% of its industry peers.
  • OTEX's Profit Margin has improved in the last couple of years.
  • The Operating Margin of OTEX (20.78%) is better than 88.73% of its industry peers.
  • OTEX's Operating Margin has been stable in the last couple of years.
  • OTEX has a Gross Margin (72.70%) which is in line with 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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2

2. OTEX Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OTEX 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.
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.
  • OTEX has a Altman-Z score (1.19) 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.
  • Looking at the Debt to FCF ratio, with a value of 7.25, OTEX is in line with its industry, outperforming 50.91% of the companies in the same industry.
  • A Debt/Equity ratio of 1.57 is on the high side and indicates that OTEX has dependencies on debt financing.
  • OTEX's Debt to Equity ratio of 1.57 is on the low side compared to the rest of the industry. OTEX is outperformed by 79.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 7.25
Altman-Z 1.19
ROIC/WACC0.81
WACC9.24%
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 0.94. This is a bad value and indicates that OTEX is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of OTEX (0.94) is worse than 78.18% 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 77.82% 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. OTEX Growth Analysis

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.
  • The Revenue has decreased by -4.30% in the past year.
  • The Revenue has been growing by 10.69% on average over the past years. This is quite good.
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 15.35% 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 Y10.07%
EPS Next 2Y7.69%
EPS Next 3Y15.35%
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.
  • 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 5

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9

4. OTEX Valuation Analysis

4.1 Price/Earnings Ratio

  • OTEX is valuated cheaply with a Price/Earnings ratio of 5.67.
  • OTEX's Price/Earnings ratio is rather cheap when compared to the industry. OTEX is cheaper than 94.55% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of OTEX to the average of the S&P500 Index (25.60), we can say OTEX is valued rather cheaply.
  • The Price/Forward Earnings ratio is 5.07, which 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 93.09% of the companies in the same industry.
  • OTEX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.67
Fwd PE 5.07
OTEX Price Earnings VS Forward Price EarningsOTEX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, OTEX is valued cheaply inside the industry as 93.82% 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 93.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.42
EV/EBITDA 6.27
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.
  • A more expensive valuation may be justified as OTEX's earnings are expected to grow with 15.35% in the coming years.
PEG (NY)0.56
PEG (5Y)0.98
EPS Next 2Y7.69%
EPS Next 3Y15.35%

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

8

5. OTEX Dividend Analysis

5.1 Amount

  • OTEX has a Yearly Dividend Yield of 4.39%, which is a nice return.
  • The stock price of OTEX dropped by -29.05% 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 0.66. OTEX pays more dividend than 96.36% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, OTEX pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.39%

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

  • 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 earnings are growing more, so the dividend growth is sustainable.
DP62.08%
EPS Next 2Y7.69%
EPS Next 3Y15.35%
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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OTEX Fundamentals: All Metrics, Ratios and Statistics

OPEN TEXT CORP

NASDAQ:OTEX (4/2/2026, 8:00:02 PM)

After market: 22.52 0 (0%)

22.52

-0.02 (-0.09%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-28
Inst Owners91.16%
Inst Owner Change11.94%
Ins Owners1.49%
Ins Owner ChangeN/A
Market Cap5.64B
Revenue(TTM)5.18B
Net Income(TTM)436.35M
Analysts78
Price Target40.19 (78.46%)
Short Float %6.4%
Short Ratio6.66
Dividend
Industry RankSector Rank
Dividend Yield 4.39%
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)0%
PT rev (3m)0.71%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-5.86%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 5.67
Fwd PE 5.07
P/S 1.09
P/FCF 6.42
P/OCF 5.5
P/B 1.4
P/tB N/A
EV/EBITDA 6.27
EPS(TTM)3.97
EY17.63%
EPS(NY)4.44
Fwd EY19.72%
FCF(TTM)3.51
FCFY15.57%
OCF(TTM)4.1
OCFY18.2%
SpS20.67
BVpS16.14
TBVpS-20.43
PEG (NY)0.56
PEG (5Y)0.98
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 1.19
F-Score6
WACC9.24%
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 Y10.07%
EPS Next 2Y7.69%
EPS Next 3Y15.35%
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 Year14.58%
EBIT Next 3Y7.06%
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 Fundamental Analysis 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.


How profitable is OPEN TEXT CORP (OTEX) stock?

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


Can you provide the financial health for OTEX stock?

The financial health rating of OPEN TEXT CORP (OTEX) is 2 / 10.


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%.