Open Text
Market Cap
US$11.4b
Last Updated
2019/12/10 23:43 UTC
Data Sources
Company Financials +
Executive Summary
Open Text Corporation provides a suite of software products and services.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.7%
OTEX
0.2%
US Software
1.1%
US Market
1 Year Return
26.9%
OTEX
28.8%
US Software
17.8%
US Market
Return vs Industry: OTEX underperformed the US Software industry which returned 28.8% over the past year.
Return vs Market: OTEX exceeded the US Market which returned 17.8% over the past year.
Shareholder returns
| OTEX | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | 0.2% | 1.1% |
| 30 Day | 2.3% | 1.3% | 1.4% |
| 90 Day | 3.2% | 4.0% | 3.9% |
| 1 Year | 29.1%26.9% | 30.7%28.8% | 20.3%17.8% |
| 3 Year | 43.9%37.0% | 125.1%116.1% | 44.8%35.4% |
| 5 Year | 64.5%51.7% | 185.0%164.8% | 71.3%52.4% |
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
1 week ago | Simply Wall St
What To Know Before Buying Open Text Corporation (NASDAQ:OTEX) For Its Dividend2 weeks ago | Simply Wall St
4 Days Left Until Open Text Corporation (NASDAQ:OTEX) Trades Ex-Dividend3 weeks ago | Simply Wall St
The Independent Director of Open Text Corporation (NASDAQ:OTEX), Gail Hamilton, Just Sold 100% Of Their HoldingValuation
Is Open Text undervalued compared to its fair value and its price relative to the market?
1.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OTEX ($42.5) is trading below our estimate of fair value ($43.06)
Significantly Below Fair Value: OTEX is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: OTEX is good value based on its PE Ratio (35.4x) compared to the Software industry average (44.5x).
PE vs Market: OTEX is poor value based on its PE Ratio (35.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: OTEX is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: OTEX is good value based on its PB Ratio (2.9x) compared to the US Software industry average (5.7x).
Next Steps
Future Growth
How is Open Text forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
22.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTEX's forecast earnings growth (22.4% per year) is above the savings rate (1.7%).
Earnings vs Market: OTEX's earnings (22.4% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: OTEX's revenue (3.2% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: OTEX's revenue (3.2% 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?
-1.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTEX has high quality earnings.
Growing Profit Margin: OTEX's current net profit margins (11.2%) are higher than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: OTEX's earnings have declined by -1.4% per year over the past 5 years.
Accelerating Growth: OTEX's earnings growth over the past year (33.7%) exceeds its 5-year average (-1.4% per year).
Earnings vs Industry: OTEX earnings growth over the past year (33.7%) exceeded the Software industry 15.8%.
Return on Equity
High ROE: OTEX's Return on Equity (8.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Open Text's financial position?
Financial Position Analysis
Short Term Liabilities: OTEX's short term assets ($1.5B) exceed its short term liabilities ($951.9M).
Long Term Liabilities: OTEX's short term assets ($1.5B) do not cover its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: OTEX's debt to equity ratio (66.9%) is considered high.
Reducing Debt: OTEX's debt to equity ratio has reduced from 77% to 66.9% over the past 5 years.
Debt Coverage: OTEX's debt is well covered by operating cash flow (32.2%).
Interest Coverage: OTEX's interest payments on its debt are well covered by EBIT (4.9x coverage).
Balance Sheet
Inventory Level: OTEX has a low level of unsold assets or inventory.
Debt Coverage by Assets: OTEX's debt is not covered by short term assets (assets are 0.6x debt).
Next Steps
Dividend
What is Open Text's current dividend yield, its reliability and sustainability?
1.64%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: OTEX's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: OTEX's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.67%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.3%), OTEX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OTEX's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).
Next Steps
Management
What is the CEO of Open Text's salary, the management and board of directors tenure and is there insider trading?
5.1yrs
Average management tenure
CEO
Mark Barrenechea (54yo)
7.9yrs
Tenure
US$8,099,674
Compensation
Mr. Mark J. Barrenechea has been the Chief Executive Officer and President of OpenText Public Sector Solutions, Inc. since January 2, 2012 and has been its Chief Technology Officer since January 4, 2016. M ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD8.10M) is about average for companies of similar size in the US market ($USD10.90M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.1yrs
Average Tenure
54yo
Average Age
Experienced Management: OTEX's management team is seasoned and experienced (5.1 years average tenure).
Board Age and Tenure
11.0yrs
Average Tenure
59yo
Average Age
Experienced Board: OTEX's board of directors are seasoned and experienced ( 11 years average tenure).
Insider Trading
Insider Buying: OTEX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 13,990 |
| Max Price | US$42.56 |
| Entity | Individual |
| Role | Chief Information Officer Senior VP & Chief Information Officer |
| Shares | 4,673.26 |
| Max Price | US$41.64 |
| Entity | Individual |
| Shares | 904 |
| Max Price | US$40.71 |
| Entity | Individual |
| Role | Member of the Board of Directors Non Independent Director |
| Shares | 15,000 |
| Max Price | US$41.30 |
| Entity | Individual |
| Shares | 1,903 |
| Max Price | US$41.02 |
| Entity | Individual |
| Role | Head of Sales Executive Vice President of Worldwide Sales |
| Shares | 20,000 |
| Max Price | US$40.48 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 6,362 |
| Max Price | US$39.70 |
| Entity | Individual |
| Shares | 1,430 |
| Max Price | US$40.10 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 8,638 |
| Max Price | US$40.23 |
| Entity | Individual |
| Shares | 447 |
| Max Price | US$40.29 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Customer Operations |
| Shares | 2,640 |
| Max Price | US$39.90 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman of the Board |
| Shares | 199,300 |
| Max Price | US$38.07 |
| Entity | Individual |
| Role | Lead Director Lead Director |
| Shares | 10,000 |
| Max Price | US$37.97 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Customer Operations |
| Shares | 5,622 |
| Max Price | US$36.99 |
| Entity | Individual |
| Role | Chief Information Officer Senior VP & Chief Information Officer |
| Shares | 5,353 |
| Max Price | US$36.87 |
| Entity | Individual |
| Role | Chief Information Officer Senior VP & Chief Information Officer |
| Shares | 8,205 |
| Max Price | US$37.05 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Mark Barrenechea (54yo)
Vice Chairman
- Tenure: 7.9yrs
- Compensation: US$8.10m
Gordon Davies (57yo)
Executive VP
- Tenure: 10.3yrs
- Compensation: US$2.51m
Madhu Ranganathan (54yo)
Executive VP
- Tenure: 1.7yrs
- Compensation: US$2.12m
Patricia Nagle (54yo)
Senior VP & Chief Marketing Officer
- Tenure: 1.8yrs
Christopher McGourlay (50yo)
Executive Vice President of Customer Operations
- Tenure: 7.8yrs
Muhi Majzoub (59yo)
Executive VP & Chief Product Officer
- Tenure: 7.5yrs
- Compensation: US$2.68m
Ted Harrison (49yo)
Executive Vice President of Worldwide Sales
- Tenure: 2.2yrs
- Compensation: US$1.99m
David Jamieson (54yo)
Senior VP & Chief Information Officer
- Tenure: 5.1yrs
- Compensation: US$1.62m
Brian Sweeney (55yo)
Senior VP & Chief Human Resources Officer
- Tenure: 1.2yrs
Harry Blount
Senior VP & Global Head of Investor Relations
- Tenure: 0yrs
Board Members
Mark Barrenechea (54yo)
Vice Chairman
- Tenure: 7.9yrs
- Compensation: US$8.10m
Kate Stevenson (57yo)
Independent Director
- Tenure: 11yrs
- Compensation: US$369.90k
Deborah Weinstein (59yo)
Independent Director
- Tenure: 10yrs
- Compensation: US$382.80k
Gail Hamilton (69yo)
Independent Director
- Tenure: 13yrs
- Compensation: US$358.52k
Stephen Sadler (68yo)
Non Independent Director
- Tenure: 22.3yrs
- Compensation: US$984.16k
Randy Fowlie (59yo)
Lead Director
- Tenure: 0yrs
- Compensation: US$393.81k
Michael Slaunwhite (58yo)
Independent Director
- Tenure: 21.8yrs
- Compensation: US$389.91k
Carl Tinggren (61yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$329.92k
Tom Jenkins (60yo)
Independent Chairman of the Board
- Tenure: 21.9yrs
- Compensation: US$559.78k
Harmit Singh (56yo)
Independent Director
- Tenure: 1.3yrs
- Compensation: US$351.32k
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$11.439b
- Shares outstanding: 269.41m
- Website: https://www.opentext.com
Number of Employees
Location
- Open Text Corporation
- 275 Frank Tompa Drive
- Waterloo
- Ontario
- N2L 0A1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OTEX | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jan 1996 |
| OTEX | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1996 |
| OTX | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1996 |
Biography
Open Text Corporation provides a suite of software products and services. The company offers content services; business network, a cloud-based platform that facilitates collaboration and exchange of inform ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/10 23:43 |
| End of Day Share Price | 2019/12/10 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/06/30 |
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.