(OTEX) Open Text - Overview
Stock: Cloud, Content, Cybersecurity, Analytics, APIs
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.59% |
| Yield on Cost 5y | 2.56% |
| Yield CAGR 5y | 6.26% |
| Payout Consistency | 98.3% |
| Payout Ratio | 27.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 29.6% |
| Relative Tail Risk | -1.38% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.14 |
| Alpha | -26.36 |
| Character TTM | |
|---|---|
| Beta | 0.961 |
| Beta Downside | 0.624 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.58% |
| CAGR/Max DD | -0.17 |
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) 6.5
| Net Income: 436.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.47 > 1.0 |
| NWC/Revenue: -2.94% < 20% (prev -5.88%; Δ 2.93% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.02b > Net Income 436.5m |
| Net Debt (-1.01b) to EBITDA (1.36b): -0.75 < 3 |
| Current Ratio: 0.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (253.7m) vs 12m ago -4.32% < -2% |
| Gross Margin: 66.11% > 18% (prev 0.64%; Δ 6547 % > 0.5%) |
| Asset Turnover: 37.97% > 50% (prev 39.17%; Δ -1.20% > 0%) |
| Interest Coverage Ratio: 3.11 > 6 (EBITDA TTM 1.36b / Interest Expense TTM 187.8m) |
Altman Z'' 1.30
| A: -0.01 (Total Current Assets 2.35b - Total Current Liabilities 2.50b) / Total Assets 13.57b |
| B: 0.15 (Retained Earnings 1.97b / Total Assets 13.57b) |
| C: 0.04 (EBIT TTM 583.8m / Avg Total Assets 13.65b) |
| D: 0.59 (Book Value of Equity 4.12b / Total Liabilities 7.02b) |
| Altman-Z'' Score: 1.30 = BB |
Beneish M -3.06
| DSRI: 1.10 (Receivables 720.8m/678.8m, Revenue 5.18b/5.38b) |
| GMI: 0.96 (GM 66.11% / 63.60%) |
| AQI: 0.97 (AQ_t 0.79 / AQ_t-1 0.81) |
| SGI: 0.96 (Revenue 5.18b / 5.38b) |
| TATA: -0.04 (NI 436.5m - CFO 1.02b) / TA 13.57b) |
| Beneish M-Score: -3.06 (Cap -4..+1) = AA |
What is the price of OTEX shares?
Over the past week, the price has changed by +2.42%, over one month by -22.64%, over three months by -26.45% and over the past year by -9.04%.
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 | 33.8 | 33.4% |
| Analysts Target Price | 33.8 | 33.4% |
| ValueRay Target Price | 25.2 | -0.5% |
OTEX Fundamental Data Overview February 08, 2026
P/E Forward = 5.4555
P/S = 1.2295
P/B = 1.4536
P/EG = 0.87
Revenue TTM = 5.18b USD
EBIT TTM = 583.8m USD
EBITDA TTM = 1.36b USD
Long Term Debt = 6.34b USD (from longTermDebt, last fiscal year)
Short Term Debt = 102.5m USD (from shortTermDebt, last quarter)
Debt = 257.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.01b USD (from netDebt column, last quarter)
Enterprise Value = 5.36b USD (6.38b + Debt 257.7m - CCE 1.27b)
Interest Coverage Ratio = 3.11 (Ebit TTM 583.8m / Interest Expense TTM 187.8m)
EV/FCF = 6.16x (Enterprise Value 5.36b / FCF TTM 870.7m)
FCF Yield = 16.23% (FCF TTM 870.7m / Enterprise Value 5.36b)
FCF Margin = 16.80% (FCF TTM 870.7m / Revenue TTM 5.18b)
Net Margin = 8.42% (Net Income TTM 436.5m / Revenue TTM 5.18b)
Gross Margin = 66.11% ((Revenue TTM 5.18b - Cost of Revenue TTM 1.76b) / Revenue TTM)
Gross Margin QoQ = 74.03% (prev 63.82%)
Tobins Q-Ratio = 0.40 (Enterprise Value 5.36b / Total Assets 13.57b)
Interest Expense / Debt = -30.75% (Interest Expense -79.2m / Debt 257.7m)
Taxrate = 21.97% (47.3m / 215.5m)
NOPAT = 455.6m (EBIT 583.8m * (1 - 21.97%))
Current Ratio = 0.94 (Total Current Assets 2.35b / Total Current Liabilities 2.50b)
Debt / Equity = 0.06 (Debt 257.7m / totalStockholderEquity, last quarter 4.04b)
Debt / EBITDA = -0.75 (Net Debt -1.01b / EBITDA 1.36b)
Debt / FCF = -1.16 (Net Debt -1.01b / FCF TTM 870.7m)
Total Stockholder Equity = 4.01b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.20% (Net Income 436.5m / Total Assets 13.57b)
RoE = 10.88% (Net Income TTM 436.5m / Total Stockholder Equity 4.01b)
RoCE = 5.64% (EBIT 583.8m / Capital Employed (Equity 4.01b + L.T.Debt 6.34b))
RoIC = 4.39% (NOPAT 455.6m / Invested Capital 10.38b)
WACC = 9.09% (E(6.38b)/V(6.64b) * Re(9.46%) + (debt cost/tax rate unavailable))
Discount Rate = 9.46% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -3.44%
[DCF Debug] Terminal Value 73.34% ; FCFF base≈793.9m ; Y1≈755.5m ; Y5≈724.4m
Fair Price DCF = 46.43 (EV 10.62b - Net Debt -1.01b = Equity 11.64b / Shares 250.6m; r=9.09% [WACC]; 5y FCF grow -6.32% → 2.90% )
EPS Correlation: 65.68 | EPS CAGR: 13.62% | SUE: 1.39 | # QB: 1
Revenue Correlation: 61.86 | Revenue CAGR: 11.13% | SUE: 0.51 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.91 | Chg30d=-0.051 | Revisions Net=+2 | Analysts=9
EPS current Year (2026-06-30): EPS=4.13 | Chg30d=-0.002 | Revisions Net=-1 | Growth EPS=+8.2% | Growth Revenue=+0.9%
EPS next Year (2027-06-30): EPS=4.40 | Chg30d=-0.066 | Revisions Net=-1 | Growth EPS=+6.4% | Growth Revenue=+1.2%