Overview Dividends

(OTEX) Open Text - Ratings and Ratios

Exchange: NASDAQ • Country: Canada • Currency: USD • Type: Common Stock • ISIN: CA6837151068

Cloud Services, Business Applications, AI, Consulting

Application Software
Market Cap in USD: 8,588m

IPO / Inception: 1998-09-09
Return 12m vs S&P 500: 7.47%

EPS (Earnings per Share)

EPS CAGR: 4.51%
EPS Trend: 56.6%

Last SUE: 0.83
Qual. Beats: 0

Revenue

Rev. CAGR: 10.57%
Rev. Trend: 68.7%

Last SUE: -0.01
Qual. Beats: 0

Dividends

Dividend Yield	3.22%
Yield on Cost 5y	2.75%
Yield CAGR 5y	9.03%
Payout Consistency	92.4%
Payout Ratio	27.2%

Risk via 5d forecast
Volatility	28.4%
Value at Risk 5%th	46.0%
Relative Tail Risk	-1.55%

Reward TTM
Sharpe Ratio	0.53
Alpha	5.54
CAGR/Max DD	0.17

Character TTM
Hurst Exponent	0.463
Beta	0.904
Beta Downside	0.680

Drawdowns 3y
Max DD	45.58%
Mean DD	18.60%
Median DD	19.16%

Description: OTEX Open Text November 03, 2025

Open Text Corp (NASDAQ:OTEX) develops and sells a broad portfolio of information-management software, spanning cloud-based SaaS, APIs, data services, and on-premise solutions that support content, cybersecurity, DevOps, observability, service management, analytics, and AI-driven capabilities.

The company monetizes these offerings through a mix of subscription-based cloud services, licensing fees, and professional services such as implementation, training, and managed B2B integration. Its revenue mix is increasingly weighted toward recurring subscriptions-approximately 70% of FY 2023 revenue-driving higher gross margins and more predictable cash flow.

Strategic alliances with industry leaders-including SAP, Google Cloud, AWS, Microsoft, Oracle, and Salesforce-enable Open Text to embed its platform within larger enterprise ecosystems and accelerate cross-sell opportunities. Partnerships with global systems integrators like Accenture, Capgemini, Deloitte, HPE, and TCS further expand its reach into G10-level enterprises, public-sector agencies, and mid-market firms.

Key performance indicators that signal momentum: FY 2023 revenue of $2.1 billion, a 12% year-over-year increase in annual recurring revenue (ARR), and a 22% operating margin, reflecting the shift to higher-margin cloud subscriptions. The enterprise content-management market is projected to grow at a 9% CAGR through 2028, driven by digital transformation mandates and regulatory data-retention pressures-tailwinds that directly benefit Open Text’s core addressable market.

Given the company’s diversified product suite, strong partner ecosystem, and solid subscription growth, analysts should monitor the pace of AI integration into its platform and the impact of macro-level IT-spending trends on its mid-market segment.

For a deeper dive into Open Text’s valuation dynamics and scenario analysis, you might explore the detailed research hub on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (490.2m TTM) > 0 and > 6% of Revenue (6% = 309.2m TTM)

FCFTA 0.07 (>2.0%) and ΔFCFTA 1.70pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -6.32% (prev -9.18%; Δ 2.86pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.08 (>3.0%) and CFO 1.05b > Net Income 490.2m (YES >=105%, WARN >=100%)

Net Debt (5.54b) to EBITDA (1.58b) ratio: 3.50 <= 3.0 (WARN <= 3.5)

Current Ratio 0.87 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (253.8m) change vs 12m ago -5.25% (target <= -2.0% for YES)

Gross Margin 63.74% (prev 63.42%; Δ 0.33pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 37.82% (prev 41.07%; Δ -3.25pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 2.61 (EBITDA TTM 1.58b / Interest Expense TTM 362.6m) >= 6 (WARN >= 3)

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 (Balance) 1.94b / Total Assets 13.48b

(D) 0.43 = Book Value of Equity 4.08b / Total Liabilities 9.52b

Total Rating: 1.23 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 66.74

1. Piotroski 4.50pt

2. FCF Yield 6.35%

3. FCF Margin 17.43%

4. Debt/Equity 1.68

5. Debt/Ebitda 3.50

6. ROIC - WACC (= 1.43)%

7. RoE 12.07%

8. Rev. Trend 68.71%

9. EPS Trend 56.57%

What is the price of OTEX shares?

As of December 18, 2025, the stock is trading at USD 33.38 with a total of 710,440 shares traded.
Over the past week, the price has changed by -0.45%, over one month by +2.48%, over three months by -8.30% and over the past year by +20.86%.

Is OTEX a buy, sell or hold?

Open Text has received a consensus analysts rating of 3.33. Therefor, it is recommend to hold OTEX.

Strong Buy: 1
Buy: 2
Hold: 9
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the OTEX price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	40.5	21.2%
Analysts Target Price	40.5	21.2%
ValueRay Target Price	34.4	2.9%

OTEX Fundamental Data Overview December 10, 2025

Market Cap USD = 8.59b (8.59b USD * 1.0 USD.USD)
P/E Trailing = 17.6178
P/E Forward = 9.1241
P/S = 1.6555
P/B = 2.1381
P/EG = 0.87
Beta = 1.086
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 = 14.13b USD (8.59b + Debt 6.63b - CCE 1.09b)
Interest Coverage Ratio = 2.61 (Ebit TTM 945.3m / Interest Expense TTM 362.6m)
FCF Yield = 6.35% (FCF TTM 898.0m / Enterprise Value 14.13b)
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 = 1.05 (Enterprise Value 14.13b / 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 = 3.64% (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 = 5.71% (E(8.59b)/V(15.22b) * Re(9.35%) + D(6.63b)/V(15.22b) * Rd(1.27%) * (1-Tc(0.21)))
Discount Rate = 9.35% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.43%
[DCF Debug] Terminal Value 72.79% ; FCFE base≈812.2m ; Y1≈773.0m ; Y5≈742.9m
Fair Price DCF = 42.01 (DCF Value 10.59b / Shares Outstanding 252.0m; 5y FCF grow -6.32% → 3.0% )
EPS Correlation: 56.57 | EPS CAGR: 4.51% | SUE: 0.83 | # 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=+0.004 | Revisions Net=+5 | Growth EPS=+8.3% | Growth Revenue=+0.8%
EPS next Year (2027-06-30): EPS=4.46 | Chg30d=+0.000 | Revisions Net=+0 | Growth EPS=+8.0% | Growth Revenue=+1.7%

Additional Sources for OTEX Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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