Stock Analysis Report

Header cover image

Executive Summary

Open Text Corporation provides a suite of software products and services. More Details

Snowflake Analysis

Fair value with moderate growth potential.

Similar Companies

Share Price & News

How has Open Text's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: OTEX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: OTEX's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return




US Software


US Market

1 Year Return




US Software


US Market

Return vs Industry: OTEX underperformed the US Software industry which returned 48.5% over the past year.

Return vs Market: OTEX underperformed the US Market which returned 34.1% over the past year.

Shareholder returns

7 Day-2.7%-3.9%-1.4%
30 Day-2.0%1.7%1.6%
90 Day4.1%9.2%7.3%
1 Year6.3%4.5%49.6%48.6%40.2%37.1%
3 Year36.8%30.2%135.8%128.4%62.5%52.1%
5 Year95.9%80.7%300.5%278.3%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Open Text's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is Open Text undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OTEX ($45.66) is trading below our estimate of fair value ($62.41)

Significantly Below Fair Value: OTEX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: OTEX is poor value based on its PE Ratio (137.5x) compared to the US Software industry average (53.2x).

PE vs Market: OTEX is poor value based on its PE Ratio (137.5x) compared to the US market (21.5x).

Price to Earnings Growth Ratio

PEG Ratio: OTEX is poor value based on its PEG Ratio (1.3x)

Price to Book Ratio

PB vs Industry: OTEX is good value based on its PB Ratio (3.1x) compared to the US Software industry average (9.5x).

Next Steps

Future Growth

How is Open Text forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTEX's forecast earnings growth (104.2% per year) is above the savings rate (2%).

Earnings vs Market: OTEX's earnings (104.2% per year) are forecast to grow faster than the US market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OTEX's revenue (1.9% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: OTEX's revenue (1.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if OTEX's Return on Equity is forecast to be high in 3 years time

Next Steps

Past Performance

How has Open Text performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OTEX has high quality earnings.

Growing Profit Margin: OTEX's current net profit margins (2.7%) are lower than last year (11.1%).

Past Earnings Growth Analysis

Earnings Trend: OTEX's earnings have declined by 24% per year over the past 5 years.

Accelerating Growth: OTEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OTEX had negative earnings growth (-72.3%) over the past year, making it difficult to compare to the Software industry average (15.8%).

Return on Equity

High ROE: OTEX's Return on Equity (2.3%) is considered low.

Next Steps

Financial Health

How is Open Text's financial position?

Financial Position Analysis

Short Term Liabilities: OTEX's short term assets ($2.1B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: OTEX's short term assets ($2.1B) do not cover its long term liabilities ($4.2B).

Debt to Equity History and Analysis

Debt Level: OTEX's debt to equity ratio (89.7%) is considered high.

Reducing Debt: OTEX's debt to equity ratio has increased from 85.4% to 89.7% over the past 5 years.

Debt Coverage: OTEX's debt is well covered by operating cash flow (31.4%).

Interest Coverage: OTEX's interest payments on its debt are well covered by EBIT (4.6x coverage).

Balance Sheet

Next Steps


What is Open Text current dividend yield, its reliability and sustainability?


Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: OTEX's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: OTEX's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.75%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OTEX has been paying a dividend for less than 10 years.

Growing Dividend: OTEX's dividend payments have increased, but the company has only paid a dividend for 8 years.

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (210.3%), OTEX's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: OTEX's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Mark Barrenechea (55 yo)





Mr. Mark J. Barrenechea has been the Chief Executive Officer and President of OpenText Public Sector Solutions, Inc. since January 2, 2012 and has been its Chief Technology Officer since January 4, 2016. M...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD9.75M) is about average for companies of similar size in the US market ($USD10.54M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Mark Barrenechea
Vice Chairman9.08yrsUS$9.75m0.35%
$ 43.1m
Madhu Ranganathan
Executive VP & CFO2.83yrsUS$2.27m0.0025%
$ 305.2k
Gordon Davies
Executive VP11.42yrsUS$1.99m0.023%
$ 2.9m
Muhi Majzoub
Executive VP & Chief Product Officer8.67yrsUS$2.09m0.035%
$ 4.3m
Howard Rosen
Senior VP & Chief Accounting Officer0.83yrno data0.000070%
$ 8.7k
David Jamieson
Senior VP & Chief Information Officer6.25yrsUS$1.62m0.0041%
$ 507.4k
Harry Blount
Senior VP & Global Head of Investor Relationsno datano datano data
Simon Harrison
Executive Vice President of Enterprise Sales3.33yrsUS$1.99m0.0062%
$ 765.4k
Louis Blatt
Senior VP & Chief Marketing Officer0.83yrno data0.00024%
$ 29.8k
Brian Sweeney
Senior VP & Chief Human Resources Officer2.33yrsno datano data
Christopher McGourlay
Executive Vice President of Customer Operations9yrsno data0.0047%
$ 584.3k
Noriyuki Hayakawa
President of Japan Operations7.75yrsno datano data


Average Tenure


Average Age

Experienced Management: OTEX's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Mark Barrenechea
Vice Chairman9.08yrsUS$9.75m0.35%
$ 43.1m
Katharine Stevenson
Independent Director12.17yrsUS$383.98k0.019%
$ 2.4m
Deborah Weinstein
Independent Director11.17yrsUS$398.14k0.0074%
$ 913.0k
Gail Hamilton
Independent Director14.17yrsUS$367.92k0%
$ 0
Stephen Sadler
Non Independent Director23.42yrsUS$1.03m0.050%
$ 6.2m
Randy Fowlie
Independent Lead Directorno dataUS$405.67k0.076%
$ 9.4m
Michael Slaunwhite
Independent Director22.92yrsUS$405.42k0.25%
$ 31.0m
Paul Jenkins
Independent Chairman of the Board23.08yrsUS$576.48k0.83%
$ 103.1m
Harmit Singh
Independent Director2.42yrsUS$331.03kno data
Robert Hau
Independent Director0.42yrno datano data
David Fraser
Independent Director2.42yrsUS$313.33kno data


Average Tenure


Average Age

Experienced Board: OTEX's board of directors are seasoned and experienced ( 11.7 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: OTEX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Open Text Corporation's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Open Text Corporation
  • Ticker: OTEX
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$12.405b
  • Shares outstanding: 271.69m
  • Website:

Number of Employees


  • Open Text Corporation
  • 275 Frank Tompa Drive
  • Waterloo
  • Ontario
  • N2L 0A1
  • Canada


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OTEXNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1996
OTEXTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1996
OTXDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1996


Open Text Corporation provides a suite of software products and services. The company offers content services; business network that manages and connects data within the organization; Cyber Resilience, a s...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 00:57
End of Day Share Price2021/02/24 00:00
Annual Earnings2020/06/30

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.