(OTEX) Open Text - Ratings and Ratios
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OTEX EPS (Earnings per Share)
OTEX Revenue
Description: OTEX Open Text
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 | 8,965m |
| Sub-Industry | Application Software |
| IPO / Inception | 1998-09-09 |
OTEX Stock Ratings
| Growth Rating | 12.1% |
| Fundamental | 64.7% |
| Dividend Rating | 66.2% |
| Return 12m vs S&P 500 | 1.04% |
| Analyst Rating | 3.33 of 5 |
OTEX Dividends
| Dividend Yield 12m | 3.29% |
| Yield on Cost 5y | 2.90% |
| Annual Growth 5y | 7.16% |
| Payout Consistency | 98.1% |
| Payout Ratio | 27.8% |
OTEX Growth Ratios
| Growth Correlation 3m | 86.5% |
| Growth Correlation 12m | -0.7% |
| Growth Correlation 5y | -68.9% |
| CAGR 5y | 13.21% |
| CAGR/Max DD 3y | 0.29 |
| CAGR/Mean DD 3y | 0.73 |
| Sharpe Ratio 12m | 1.28 |
| Alpha | 0.02 |
| Beta | 0.000 |
| Volatility | 32.24% |
| Current Volume | 2276.4k |
| Average Volume 20d | 1819.6k |
| Stop Loss | 35.5 (-3.3%) |
| Signal | 0.17 |
Piotroski VR‑10 (Strict, 0-10) 4.5
| 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 -9.85%; Δ -0.71pp) (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 36.95% (prev 40.57%; Δ -3.63pp) >=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 |
| (C) 0.06 = EBIT TTM 859.5m / Avg Total Assets 13.99b |
| (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) 64.72
| 1. Piotroski 4.50pt = -0.50 |
| 2. FCF Yield 4.82% = 2.41 |
| 3. FCF Margin 13.30% = 3.32 |
| 4. Debt/Equity 1.64 = 1.28 |
| 5. Debt/Ebitda 4.30 = -2.50 |
| 6. ROIC - WACC (= 3.37)% = 4.21 |
| 7. RoE 10.62% = 0.88 |
| 8. Rev. Trend 49.09% = 3.68 |
| 9. EPS Trend 38.38% = 1.92 |
What is the price of OTEX shares?
Over the past week, the price has changed by +4.53%, over one month by +16.66%, over three months by +30.85% and over the past year by +19.76%.
Is Open Text a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of OTEX is around 36.19 USD . This means that OTEX is currently overvalued and has a potential downside of -1.39%.
Is OTEX a buy, sell or hold?
- 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 | 34.8 | -5.2% |
| Analysts Target Price | 34.8 | -5.2% |
| ValueRay Target Price | 38.7 | 5.6% |
Last update: 2025-09-12 04:42
OTEX Fundamental Data Overview
CCE Cash And Equivalents = 1.16b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 21.3636
P/E Forward = 8.5763
P/S = 1.7345
P/B = 2.2817
P/EG = 0.87
Beta = 1.165
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 = 6.45b USD (Calculated: Short Term 111.8m + Long Term 6.34b)
Net Debt = 5.49b USD (from netDebt column, last quarter)
Enterprise Value = 14.26b USD (8.96b + Debt 6.45b - CCE 1.16b)
Interest Coverage Ratio = 2.28 (Ebit TTM 859.5m / Interest Expense TTM 377.4m)
FCF Yield = 4.82% (FCF TTM 687.4m / Enterprise Value 14.26b)
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)
Tobins Q-Ratio = 3.51 (Enterprise Value 14.26b / Book Value Of Equity 4.07b)
Interest Expense / Debt = 1.43% (Interest Expense 92.3m / Debt 6.45b)
Taxrate = 9.54% (46.0m / 482.1m)
NOPAT = 777.4m (EBIT 859.5m * (1 - 9.54%))
Current Ratio = 0.80 (Total Current Assets 2.20b / Total Current Liabilities 2.75b)
Debt / Equity = 1.64 (Debt 6.45b / last Quarter total Stockholder Equity 3.93b)
Debt / EBITDA = 4.30 (Net Debt 5.49b / EBITDA 1.50b)
Debt / FCF = 9.39 (Debt 6.45b / FCF TTM 687.4m)
Total Stockholder Equity = 4.11b (last 4 quarters mean)
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 / (Equity 4.11b + L.T.Debt 6.34b))
RoIC = 7.41% (NOPAT 777.4m / Invested Capital 10.49b)
WACC = 4.04% (E(8.96b)/V(15.42b) * Re(6.02%)) + (D(6.45b)/V(15.42b) * Rd(1.43%) * (1-Tc(0.10)))
Shares Correlation 3-Years: -24.24 | Cagr: -0.42%
Discount Rate = 6.02% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 77.68% ; FCFE base≈734.1m ; Y1≈704.7m ; Y5≈689.1m
Fair Price DCF = 48.31 (DCF Value 12.29b / Shares Outstanding 254.3m; 5y FCF grow -5.34% → 3.0% )
EPS Correlation: 38.38 | EPS CAGR: 8.76% | SUE: 2.04 | # QB: 1
Revenue Correlation: 49.09 | Revenue CAGR: 16.95% | SUE: N/A | # QB: None
Additional Sources for OTEX Stock
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