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Market Cap

US$12.5b

Last Updated

2021/05/17 22:23 UTC

Data Sources

Company Financials +

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

-2.3%

OTEX

0.2%

US Software

-0.6%

US Market


1 Year Return

14.6%

OTEX

36.6%

US Software

46.0%

US Market

Return vs Industry: OTEX underperformed the US Software industry which returned 38.1% over the past year.

Return vs Market: OTEX underperformed the US Market which returned 50.8% over the past year.


Shareholder returns

OTEXIndustryMarket
7 Day-2.3%0.2%-0.6%
30 Day-7.9%-7.1%-1.8%
90 Day-2.9%-7.6%0.2%
1 Year16.5%14.6%37.5%36.6%48.4%46.0%
3 Year41.5%34.6%123.5%117.2%60.5%50.4%
5 Year78.0%64.1%294.8%274.8%125.9%100.9%

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

Valuation

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

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OTEX ($45.88) is trading below our estimate of fair value ($82.1)

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 (80.2x) compared to the US Software industry average (48.7x).

PE vs Market: OTEX is poor value based on its PE Ratio (80.2x) compared to the US market (19.8x).


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 (7.7x).


Future Growth

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

62.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTEX's forecast earnings growth (62.2% per year) is above the savings rate (2%).

Earnings vs Market: OTEX's earnings (62.2% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: OTEX's revenue (1.7% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: OTEX's revenue (1.7% 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


Past Performance

How has Open Text performed over the past 5 years?

-30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OTEX has high quality earnings.

Growing Profit Margin: OTEX's current net profit margins (4.7%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: OTEX's earnings have declined by 30% 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 (-44.3%) over the past year, making it difficult to compare to the Software industry average (23.2%).


Return on Equity

High ROE: OTEX's Return on Equity (3.9%) is considered low.


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 ($1.3B).

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%) is considered high.

Reducing Debt: OTEX's debt to equity ratio has increased from 83.1% to 89% over the past 5 years.

Debt Coverage: OTEX's debt is well covered by operating cash flow (24%).

Interest Coverage: OTEX's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Dividend

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

1.75%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 18 2021Ex Dividend DateJun 03 2021Dividend Pay DateJun 25 202122 days from Ex DividendBuy in the next 15 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: OTEX's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: OTEX's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.42%).


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 (131.2%), 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 (27.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Mark Barrenechea (55 yo)

9.33yrs

Tenure

US$9,750,205

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 ($USD9.75M) is about average for companies of similar size in the US market ($USD11.20M).

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

Experienced Management: OTEX's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: OTEX's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OTEX insiders have only sold shares 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$12.462b
  • Shares outstanding: 271.63m
  • Website: https://www.opentext.com

Number of Employees


Location

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

Listings


Biography

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 Analysis2021/05/17 22:23
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
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.