Overview Dividends

(OTEX) Open Text - Ratings and Ratios

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

Content,Docs,Security,Network,Analytics

OTEX EPS (Earnings per Share)

EPS Growth (3Y CAGR): -57.50%
EPS Trend (3Y Correlation): -38.1%

OTEX Revenue

Revenue Growth (3Y CAGR): 16.95%
Revenue Trend (3Y Correlation): 49.1%

Description: OTEX Open Text July 25, 2025

Open Text Corp (NASDAQ:OTEX) is a software company that provides a range of information management products and services, including content services, experience cloud platform, cybersecurity cloud solutions, business network cloud, IT operations management cloud, analytics and AI cloud solutions, and application automation cloud. The companys offerings enable organizations to manage their content, customer experiences, cybersecurity, and business processes.

From a business perspective, OTEX has established strategic partnerships with major technology companies such as SAP, Google Cloud, Amazon AWS, Microsoft, Oracle, and Salesforce, which can be a key driver of growth and revenue. The companys diverse portfolio of products and services, combined with its partnerships, positions it well in the competitive landscape of the application software industry.

To further analyze OTEX, some key performance indicators (KPIs) to consider include revenue growth rate, customer acquisition cost, and customer retention rate. Additionally, metrics such as operating margin, free cash flow margin, and return on equity (RoE) can provide insights into the companys profitability and financial health. With a RoE of 15.70%, OTEX demonstrates a relatively strong ability to generate profits from shareholder equity.

OTEXs valuation multiples, such as the price-to-earnings (P/E) ratio of 11.48 and forward P/E of 7.24, suggest that the company may be undervalued relative to its earnings growth potential. However, a more detailed analysis of the companys financials and industry trends is necessary to determine whether OTEX is a attractive investment opportunity.

OTEX Stock Overview

Market Cap in USD	10,017m
Sub-Industry	Application Software
IPO / Inception	1998-09-09

OTEX Stock Ratings

Growth Rating	36.7%
Fundamental	60.1%
Dividend Rating	65.5%
Return 12m vs S&P 500	9.20%
Analyst Rating	3.33 of 5

OTEX Dividends

Dividend Yield 12m	2.77%
Yield on Cost 5y	3.34%
Annual Growth 5y	9.03%
Payout Consistency	98.1%
Payout Ratio	27.8%

OTEX Growth Ratios

Growth Correlation 3m	95.8%
Growth Correlation 12m	56.6%
Growth Correlation 5y	-65.3%
CAGR 5y	16.41%
CAGR/Max DD 3y (Calmar Ratio)	0.36
CAGR/Mean DD 3y (Pain Ratio)	0.91
Sharpe Ratio 12m	1.27
Alpha	-3.74
Beta	1.180
Volatility	34.33%
Current Volume	1461.2k
Average Volume 20d	1027.1k
Stop Loss	37.1 (-3.3%)
Signal	0.63

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (435.9m TTM) > 0 and > 6% of Revenue (6% = 310.1m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA -0.67pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -10.56% (prev -9.08%; Δ -1.48pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 830.6m > Net Income 435.9m (YES >=105%, WARN >=100%)

Net Debt (5.49b) to EBITDA (1.50b) ratio: 3.66 <= 3.0 (WARN <= 3.5)

Current Ratio 0.80 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (257.7m) change vs 12m ago -5.16% (target <= -2.0% for YES)

Gross Margin 72.25% (prev 68.10%; Δ 4.15pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 36.94% (prev 40.57%; Δ -3.62pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 2.28 (EBITDA TTM 1.50b / Interest Expense TTM 377.4m) >= 6 (WARN >= 3)

Altman Z'' 1.05

(A) -0.04 = (Total Current Assets 2.20b - Total Current Liabilities 2.75b) / Total Assets 13.77b

(B) 0.14 = Retained Earnings (Balance) 1.94b / Total Assets 13.77b

(D) 0.41 = Book Value of Equity 4.07b / Total Liabilities 9.84b

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

ValueRay F-Score (Strict, 0-100) 60.11

1. Piotroski 5.0pt = 0.0

2. FCF Yield 4.43% = 2.22

3. FCF Margin 13.30% = 3.32

4. Debt/Equity 1.69 = 1.22

5. Debt/Ebitda 3.66 = -2.41

6. ROIC - WACC (= 2.48)% = 3.10

7. RoE 10.62% = 0.88

8. Rev. Trend 49.09% = 3.68

9. EPS Trend -38.09% = -1.90

What is the price of OTEX shares?

As of November 03, 2025, the stock is trading at USD 38.35 with a total of 1,461,202 shares traded.
Over the past week, the price has changed by -2.54%, over one month by +2.59%, over three months by +31.39% and over the past year by +32.57%.

Is Open Text a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Open Text is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 60.11 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of OTEX is around 37.96 USD . This means that OTEX is currently overvalued and has a potential downside of -1.02%.

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	38.2	-0.4%
Analysts Target Price	38.2	-0.4%
ValueRay Target Price	41.5	8.1%

OTEX Fundamental Data Overview October 27, 2025

Market Cap USD = 10.02b (10.02b USD * 1.0 USD.USD)
P/E Trailing = 23.8485
P/E Forward = 9.1241
P/S = 1.9382
P/B = 2.4377
P/EG = 0.87
Beta = 1.18
Revenue TTM = 5.17b USD
EBIT TTM = 859.5m USD
EBITDA TTM = 1.50b USD
Long Term Debt = 6.34b USD (from longTermDebt, last quarter)
Short Term Debt = 111.8m USD (from shortTermDebt, last quarter)
Debt = 6.64b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.49b USD (from netDebt column, last quarter)
Enterprise Value = 15.50b USD (10.02b + Debt 6.64b - CCE 1.16b)
Interest Coverage Ratio = 2.28 (Ebit TTM 859.5m / Interest Expense TTM 377.4m)
FCF Yield = 4.43% (FCF TTM 687.4m / Enterprise Value 15.50b)
FCF Margin = 13.30% (FCF TTM 687.4m / Revenue TTM 5.17b)
Net Margin = 8.43% (Net Income TTM 435.9m / Revenue TTM 5.17b)
Gross Margin = 72.25% ((Revenue TTM 5.17b - Cost of Revenue TTM 1.43b) / Revenue TTM)
Gross Margin QoQ = 72.31% (prev 71.61%)
Tobins Q-Ratio = 1.13 (Enterprise Value 15.50b / Total Assets 13.77b)
Interest Expense / Debt = 1.39% (Interest Expense 92.3m / Debt 6.64b)
Taxrate = -156.3% (out of range, set to none) (-17.6m / 11.3m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 0.80 (Total Current Assets 2.20b / Total Current Liabilities 2.75b)
Debt / Equity = 1.69 (Debt 6.64b / totalStockholderEquity, last quarter 3.93b)
Debt / EBITDA = 3.66 (Net Debt 5.49b / EBITDA 1.50b)
Debt / FCF = 7.98 (Net Debt 5.49b / FCF TTM 687.4m)
Total Stockholder Equity = 4.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.16% (Net Income 435.9m / Total Assets 13.77b)
RoE = 10.62% (Net Income TTM 435.9m / Total Stockholder Equity 4.11b)
RoCE = 8.23% (EBIT 859.5m / Capital Employed (Equity 4.11b + L.T.Debt 6.34b))
RoIC = 8.71% (EBIT 859.5m / (Assets 13.77b - Curr.Liab 2.75b - Cash 1.16b))
WACC = 6.23% (E(10.02b)/V(16.66b) * Re(10.36%) + (debt cost/tax rate unavailable))
Discount Rate = 10.36% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.69%
[DCF Debug] Terminal Value 69.51% ; FCFE base≈734.1m ; Y1≈704.7m ; Y5≈689.1m
Fair Price DCF = 33.32 (DCF Value 8.47b / Shares Outstanding 254.3m; 5y FCF grow -5.34% → 3.0% )
EPS Correlation: -38.09 | EPS CAGR: -57.50% | SUE: -4.0 | # QB: 0
Revenue Correlation: 49.09 | Revenue CAGR: 16.95% | SUE: 1.21 | # QB: 1

Additional Sources for OTEX Stock

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