(OTEX) Open Text - Overview
Stock: Cloud, Content, Cybersecurity, Analytics, APIs
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.59% |
| Yield on Cost 5y | 2.51% |
| Yield CAGR 5y | 6.26% |
| Payout Consistency | 98.3% |
| Payout Ratio | 37.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 33.5% |
| Relative Tail Risk | -1.92% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.34 |
| Alpha | -29.65 |
| Character TTM | |
|---|---|
| Beta | 0.958 |
| Beta Downside | 0.624 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.58% |
| CAGR/Max DD | -0.18 |
Description: OTEX Open Text January 06, 2026
Open Text Corp (OTEX) is a Canadian-based enterprise software vendor that develops and sells a broad portfolio of information-management solutions, ranging from SaaS-based content and cybersecurity clouds to on-premise platforms, APIs, and managed B2B integration services. Its offerings are delivered globally across North America, Europe, APAC and emerging markets, and it serves a spectrum of customers from G10-level enterprises to SMBs and direct consumers.
In FY 2023 the company reported revenue of $3.5 billion, with subscription-based recurring revenue representing roughly 68 % of total sales-a metric that analysts track as a proxy for earnings stability. The cloud segment grew at an annualized rate of ≈ 14 % YoY, outpacing the broader application-software industry, which is projected by IDC to expand at ~9 % through 2026. Open Text’s operating margin compressed to 13 % due to higher R&D and partnership-related costs, highlighting the trade-off between growth investment and profitability.
Key macro drivers for Open Text include the accelerating corporate shift toward digital transformation, heightened demand for secure content collaboration, and the integration of generative AI into enterprise workflows. The company’s strategic alliances with SAP, Google Cloud, AWS, Microsoft, Oracle and Salesforce give it access to cross-sell opportunities and reinforce its position in the growing “content services platform” market, which Gartner estimates will reach $25 billion by 2027.
For a deeper dive into how these dynamics translate into valuation metrics, you might explore ValueRay’s detailed analyst models.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: 490.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 1.70 > 1.0 |
| NWC/Revenue: -6.32% < 20% (prev -9.18%; Δ 2.86% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.05b > Net Income 490.2m |
| Net Debt (5.54b) to EBITDA (1.58b): 3.50 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (253.8m) vs 12m ago -5.25% < -2% |
| Gross Margin: 63.74% > 18% (prev 0.63%; Δ 6311 % > 0.5%) |
| Asset Turnover: 37.82% > 50% (prev 41.07%; Δ -3.25% > 0%) |
| Interest Coverage Ratio: 2.61 > 6 (EBITDA TTM 1.58b / Interest Expense TTM 362.6m) |
Altman Z'' 1.23
| A: -0.02 (Total Current Assets 2.14b - Total Current Liabilities 2.46b) / Total Assets 13.48b |
| B: 0.14 (Retained Earnings 1.94b / Total Assets 13.48b) |
| C: 0.07 (EBIT TTM 945.3m / Avg Total Assets 13.63b) |
| D: 0.43 (Book Value of Equity 4.08b / Total Liabilities 9.52b) |
| Altman-Z'' Score: 1.23 = BB |
Beneish M -3.08
| DSRI: 1.08 (Receivables 747.6m/759.5m, Revenue 5.15b/5.66b) |
| GMI: 0.99 (GM 63.74% / 63.42%) |
| AQI: 0.98 (AQ_t 0.80 / AQ_t-1 0.81) |
| SGI: 0.91 (Revenue 5.15b / 5.66b) |
| TATA: -0.04 (NI 490.2m - CFO 1.05b) / TA 13.48b) |
| Beneish M-Score: -3.08 (Cap -4..+1) = AA |
What is the price of OTEX shares?
Over the past week, the price has changed by -1.80%, over one month by -22.34%, over three months by -29.75% and over the past year by -12.00%.
Is OTEX a buy, sell or hold?
- StrongBuy: 1
- Buy: 2
- Hold: 9
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the OTEX price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 38.7 | 54.4% |
| Analysts Target Price | 38.7 | 54.4% |
| ValueRay Target Price | 24.8 | -1% |
OTEX Fundamental Data Overview February 03, 2026
P/E Forward = 6.2073
P/S = 1.256
P/B = 1.6826
P/EG = 0.87
Revenue TTM = 5.15b USD
EBIT TTM = 945.3m USD
EBITDA TTM = 1.58b USD
Long Term Debt = 6.34b USD (from longTermDebt, last quarter)
Short Term Debt = 109.6m USD (from shortTermDebt, last quarter)
Debt = 6.63b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.54b USD (from netDebt column, last quarter)
Enterprise Value = 12.06b USD (6.52b + Debt 6.63b - CCE 1.09b)
Interest Coverage Ratio = 2.61 (Ebit TTM 945.3m / Interest Expense TTM 362.6m)
EV/FCF = 13.43x (Enterprise Value 12.06b / FCF TTM 898.0m)
FCF Yield = 7.45% (FCF TTM 898.0m / Enterprise Value 12.06b)
FCF Margin = 17.43% (FCF TTM 898.0m / Revenue TTM 5.15b)
Net Margin = 9.51% (Net Income TTM 490.2m / Revenue TTM 5.15b)
Gross Margin = 63.74% ((Revenue TTM 5.15b - Cost of Revenue TTM 1.87b) / Revenue TTM)
Gross Margin QoQ = 63.82% (prev 63.64%)
Tobins Q-Ratio = 0.89 (Enterprise Value 12.06b / Total Assets 13.48b)
Interest Expense / Debt = 1.27% (Interest Expense 84.0m / Debt 6.63b)
Taxrate = 21.09% (38.8m / 183.8m)
NOPAT = 745.9m (EBIT 945.3m * (1 - 21.09%))
Current Ratio = 0.87 (Total Current Assets 2.14b / Total Current Liabilities 2.46b)
Debt / Equity = 1.68 (Debt 6.63b / totalStockholderEquity, last quarter 3.95b)
Debt / EBITDA = 3.50 (Net Debt 5.54b / EBITDA 1.58b)
Debt / FCF = 6.17 (Net Debt 5.54b / FCF TTM 898.0m)
Total Stockholder Equity = 4.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.60% (Net Income 490.2m / Total Assets 13.48b)
RoE = 12.07% (Net Income TTM 490.2m / Total Stockholder Equity 4.06b)
RoCE = 9.09% (EBIT 945.3m / Capital Employed (Equity 4.06b + L.T.Debt 6.34b))
RoIC = 7.15% (NOPAT 745.9m / Invested Capital 10.44b)
WACC = 5.18% (E(6.52b)/V(13.15b) * Re(9.44%) + D(6.63b)/V(13.15b) * Rd(1.27%) * (1-Tc(0.21)))
Discount Rate = 9.44% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.43%
[DCF Debug] Terminal Value 85.83% ; FCFF base≈812.2m ; Y1≈772.9m ; Y5≈741.1m
Fair Price DCF = 66.23 (EV 22.24b - Net Debt 5.54b = Equity 16.69b / Shares 252.0m; r=5.90% [WACC]; 5y FCF grow -6.32% → 2.90% )
EPS Correlation: -13.56 | EPS CAGR: -43.68% | SUE: -4.0 | # QB: 0
Revenue Correlation: 68.71 | Revenue CAGR: 10.57% | SUE: -0.01 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.96 | Chg30d=+0.000 | Revisions Net=+2 | Analysts=11
EPS current Year (2026-06-30): EPS=4.14 | Chg30d=-0.001 | Revisions Net=-1 | Growth EPS=+8.2% | Growth Revenue=+0.8%
EPS next Year (2027-06-30): EPS=4.46 | Chg30d=+0.000 | Revisions Net=-1 | Growth EPS=+8.0% | Growth Revenue=+1.7%