(OTEX) Open Text - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 5.775m USD | Total Return: -14.6% in 12m
Avg Turnover: 72.6M
EPS Trend: -54.3%
Qual. Beats: 2
Rev. Trend: 2.1%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
Confidence
Open Text Corporation is a Canadian-based information management software provider specializing in cloud services, cybersecurity, and data analytics. The company operates globally, offering software-as-a-service (SaaS) and managed service arrangements designed to integrate business processes and handle enterprise content. Its business model relies on a mix of recurring subscription revenue and professional service fees for implementation and training.
The enterprise information management (EIM) sector is characterized by high switching costs, as organizations often embed these software solutions deeply into their operational infrastructure. Open Text maintains strategic partnerships with major cloud providers and system integrators, including Microsoft, Google Cloud, and Accenture, to facilitate large-scale deployments for public sector agencies and global enterprises. Considering the complexity of its product portfolio, reviewing the detailed performance metrics on ValueRay can provide further clarity on its growth trajectory.
Founded in 1991, the company has expanded its capabilities through internal development and strategic acquisitions to cover observability, artificial intelligence, and B2B integration. This diverse service offering allows the firm to target a broad customer base ranging from small businesses to G10K organizations.
- Cloud services and subscription growth accelerates recurring revenue and margin expansion
- Integration and synergy capture from Micro Focus acquisition impacts operational leverage
- Strategic partnerships with hyperscalers drive enterprise adoption of information management software
- High interest rates increase debt servicing costs following significant acquisition-related leverage
- AI-driven content management solutions expand market share within Global 10K organizations
| Net Income: 513.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.97 > 1.0 |
| NWC/Revenue: -3.80% < 20% (prev -6.93%; Δ 3.13% < -1%) |
| CFO/TA 0.07 > 3% & CFO 977.5m > Net Income 513.8m |
| Net Debt (5.38b) to EBITDA (1.58b): 3.41 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (248.0m) vs 12m ago -6.02% < -2% |
| Gross Margin: 71.16% > 18% (prev 69.83%; Δ 1.34% > 0.5%) |
| Asset Turnover: 38.27% > 50% (prev 37.95%; Δ 0.32% > 0%) |
| Interest Coverage Ratio: 2.73 > 6 (EBIT TTM 957.6m / Interest Expense TTM 350.7m) |
| A: -0.01 (Total Current Assets 2.35b - Total Current Liabilities 2.54b) / Total Assets 13.4b |
| B: 0.15 (Retained Earnings 1.95b / Total Assets 13.4b) |
| C: 0.07 (EBIT TTM 957.6m / Avg Total Assets 13.6b) |
| D: 0.42 (Book Value of Equity 3.98b / Total Liabilities 9.39b) |
| Altman-Z'' = 1.30 = BB |
| DSRI: 1.16 (Receivables 740.9m/641.0m, Revenue 5.19b/5.22b) |
| GMI: 0.98 (GM 69.83% / 71.16%) |
| AQI: 0.98 (AQ_t 0.78 / AQ_t-1 0.80) |
| SGI: 0.99 (Revenue 5.19b / 5.22b) |
| TATA: -0.03 (NI 513.8m - CFO 977.5m) / TA 13.4b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of June 07, 2026, the stock is trading at USD 23.12 with a total of 1,324,831 shares traded.
Over the past week, the price has changed by -1.88%,
over one month by -0.37%,
over three months by -8.39% and
over the past year by -14.58%.
Open Text has received a consensus analysts rating of 3.25. Therefore, it is recommended to hold OTEX.
- StrongBuy: 0
- Buy: 3
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 29 | 25.4% |
P/E Trailing = 11.5534
P/E Forward = 5.1546
P/S = 1.0731
P/B = 1.4104
P/EG = 1.0165
Revenue TTM = 5.19b USD
EBIT TTM = 957.6m USD
EBITDA TTM = 1.58b USD
Long Term Debt = 6.17b USD (from longTermDebt, last quarter)
Short Term Debt = 99.7m USD (from shortTermDebt, last quarter)
Debt = 6.64b USD (from shortLongTermDebtTotal, last quarter) + Leases 203.8m
Net Debt = 5.38b USD (calculated: Debt 6.64b - CCE 1.26b)
Enterprise Value = 11.2b USD (5.78b + Debt 6.64b - CCE 1.26b)
Interest Coverage Ratio = 2.73 (Ebit TTM 957.6m / Interest Expense TTM 350.7m)
EV/FCF = 13.81x (Enterprise Value 11.2b / FCF TTM 807.6m)
FCF Yield = 7.24% (FCF TTM 807.6m / Enterprise Value 11.2b)
FCF Margin = 15.56% (FCF TTM 807.6m / Revenue TTM 5.19b)
Net Margin = 9.90% (Net Income TTM 513.8m / Revenue TTM 5.19b)
Gross Margin = 71.16% ((Revenue TTM 5.19b - Cost of Revenue TTM 1.50b) / Revenue TTM)
Gross Margin QoQ = 65.31% (prev 74.03%)
Tobins Q-Ratio = 0.83 (Enterprise Value 11.2b / Total Assets 13.4b)
Interest Expense / Debt = 5.28% (Interest Expense 350.7m / Debt 6.64b)
Taxrate = 16.66% (102.7m / 616.8m)
NOPAT = 798.1m (EBIT 957.6m * (1 - 16.66%))
Current Ratio = 0.92 (Total Current Assets 2.35b / Total Current Liabilities 2.54b)
Debt / Equity = 1.67 (Debt 6.64b / totalStockholderEquity, last quarter 3.98b)
Debt / EBITDA = 3.41 (Net Debt 5.38b / EBITDA 1.58b)
Debt / FCF = 6.66 (Net Debt 5.38b / FCF TTM 807.6m)
Total Stockholder Equity = 3.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.79% (Net Income 513.8m / Total Assets 13.4b)
RoE = 12.93% (Net Income TTM 513.8m / Total Stockholder Equity 3.97b)
RoCE = 9.44% (EBIT 957.6m / Capital Employed (Equity 3.97b + L.T.Debt 6.17b))
RoIC = 7.48% (NOPAT 798.1m / Invested Capital 10.7b)
WACC = 6.69% (E(5.78b)/V(12.4b) * Re(9.33%) + D(6.64b)/V(12.4b) * Rd(5.28%) * (1-Tc(0.17)))
Discount Rate = 9.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.05%
[DCF] Terminal Value 77.97% ; FCFF base≈763.6m ; Y1≈875.3m ; Y5≈1.29b
[DCF] Fair Price = 57.73 (EV 19.4b - Net Debt 5.38b = Equity 14.0b / Shares 242.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -54.27 | EPS CAGR: -7.73% | SUE: 2.98 | # QB: 2
Revenue Correlation: 2.06 | Revenue CAGR: 0.18% | SUE: -0.22 | # QB: 0
EPS next Quarter (2026-09-30): EPS=1.08 | Chg30d=+2.18% | Revisions=+40% | Analysts=7
EPS current Year (2026-06-30): EPS=4.24 | Chg30d=+2.33% | Revisions=+69% | GrowthEPS=+11.1% | GrowthRev=+1.0%
EPS next Year (2027-06-30): EPS=4.48 | Chg30d=+1.67% | Revisions=+50% | GrowthEPS=+5.6% | GrowthRev=+0.7%
[Analyst] Revisions Ratio: +69%