| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
OTEX Stock Overview
Open Text Corporation engages in the designs, develops, markets, and sells information management software and solutions.
Open Text Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$36.98 |
| 52 Week High | US$55.25 |
| 52 Week Low | US$35.04 |
| Beta | 0.93 |
| 1 Month Change | -11.11% |
| 3 Month Change | -16.34% |
| 1 Year Change | -19.92% |
| 3 Year Change | -9.36% |
| 5 Year Change | 14.67% |
| Change since IPO | 1,244.73% |
Recent News & Updates
Is Open Text Corporation (NASDAQ:OTEX) Trading At A 49% Discount?
How far off is Open Text Corporation ( NASDAQ:OTEX ) from its intrinsic value? Using the most recent financial data...
Open Text (NASDAQ:OTEX) Seems To Use Debt Quite Sensibly
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
What Does Open Text Corporation's (NASDAQ:OTEX) Share Price Indicate?
Open Text Corporation ( NASDAQ:OTEX ) received a lot of attention from a substantial price movement on the NASDAQGS...
Shareholder Returns
| OTEX | US Software | US Market | |
|---|---|---|---|
| 7D | -3.5% | -3.8% | -2.5% |
| 1Y | -19.9% | -10.3% | -10.4% |
Return vs Industry: OTEX underperformed the US Software industry which returned -10.3% over the past year.
Return vs Market: OTEX underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| OTEX volatility | |
|---|---|
| OTEX Average Weekly Movement | 4.5% |
| Software Industry Average Movement | 11.4% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: OTEX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: OTEX's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1991 | 15,000 | Mark Barrenechea | https://www.opentext.com |
Open Text Corporation engages in the designs, develops, markets, and sells information management software and solutions. It offers content services; business network that manages data within the organization and outside the firewall; security and protection solutions for defending against cyber threats, and preparing for business continuity and response in the event of a breach; digital investigation and forensic security solutions; OpenText security solutions to address information cyber resilience needs; Carbonite and Webroot products; and OpenText Information Management software platform. The company also provides Discovery platform that provides forensics and unstructured data analytics; OpenText Developer Cloud; key developer API services; AI and analytics that leverages structured or unstructured data; digital process automation solutions, which enables organizations to transform into digital data-driven businesses; and OpenText Digital Experience platform.
Open Text Fundamentals Summary
| OTEX fundamental statistics | |
|---|---|
| Market Cap | US$9.90b |
| Earnings (TTM) | US$476.18m |
| Revenue (TTM) | US$3.48b |
20.8x
P/E Ratio2.8x
P/S RatioIs OTEX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OTEX income statement (TTM) | |
|---|---|
| Revenue | US$3.48b |
| Cost of Revenue | US$859.71m |
| Gross Profit | US$2.63b |
| Other Expenses | US$2.15b |
| Earnings | US$476.18m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.78 |
| Gross Margin | 75.33% |
| Net Profit Margin | 13.66% |
| Debt/Equity Ratio | 104.1% |
How did OTEX perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield49%
Payout RatioDoes OTEX pay a reliable dividends?
See OTEX dividend history and benchmarks| Open Text dividend dates | |
|---|---|
| Ex Dividend Date | Jun 02 2022 |
| Dividend Pay Date | Jun 24 2022 |
| Days until Ex dividend | 16 days |
| Days until Dividend pay date | 38 days |
Does OTEX pay a reliable dividends?
See OTEX dividend history and benchmarksValuation
Is Open Text undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
46.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OTEX ($36.98) is trading below our estimate of fair value ($69.53)
Significantly Below Fair Value: OTEX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OTEX is good value based on its PE Ratio (20.8x) compared to the US Software industry average (41.9x).
PE vs Market: OTEX is poor value based on its PE Ratio (20.8x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: OTEX is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: OTEX is good value based on its PB Ratio (2.4x) compared to the US Software industry average (3.6x).
Future Growth
How is Open Text forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
17.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTEX's forecast earnings growth (17.1% per year) is above the savings rate (1.9%).
Earnings vs Market: OTEX's earnings (17.1% per year) are forecast to grow faster than the US market (12.6% per year).
High Growth Earnings: OTEX's earnings are forecast to grow, but not significantly.
Revenue vs Market: OTEX's revenue (3.6% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: OTEX's revenue (3.6% 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?
Past Performance Score
4/6Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-14.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTEX has high quality earnings.
Growing Profit Margin: OTEX's current net profit margins (13.7%) are higher than last year (4.7%).
Past Earnings Growth Analysis
Earnings Trend: OTEX's earnings have declined by 14.2% per year over the past 5 years.
Accelerating Growth: OTEX's earnings growth over the past year (205.7%) exceeds its 5-year average (-14.2% per year).
Earnings vs Industry: OTEX earnings growth over the past year (205.7%) exceeded the Software industry 29.6%.
Return on Equity
High ROE: OTEX's Return on Equity (11.7%) is considered low.
Financial Health
How is Open Text's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: OTEX's short term assets ($2.2B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: OTEX's short term assets ($2.2B) do not cover its long term liabilities ($4.7B).
Debt to Equity History and Analysis
Debt Level: OTEX's net debt to equity ratio (63.6%) is considered high.
Reducing Debt: OTEX's debt to equity ratio has increased from 74.8% to 104.1% over the past 5 years.
Debt Coverage: OTEX's debt is well covered by operating cash flow (24.3%).
Interest Coverage: OTEX's interest payments on its debt are well covered by EBIT (4.9x coverage).
Balance Sheet
Dividend
What is Open Text current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.39%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: OTEX's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: OTEX's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (49.3%), OTEX's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (25.1%), OTEX's dividend payments are well covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Mark Barrenechea (56 yo)
10.33yrs
Tenure
US$20,962,629
Compensation
Mr. Mark J. Barrenechea has been the Chief Executive Officer of OpenText Public Sector Solutions, Inc. and served as its President since January 2, 2012. He has been Chief Technology Officer at OpenText si...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD20.96M) is above average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: OTEX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: OTEX's board of directors are seasoned and experienced ( 12.9 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 employee growth, exchange listings and data sources
Key Information
- Name: Open Text Corporation
- Ticker: OTEX
- Exchange: NasdaqGS
- Founded: 1991
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$9.900b
- Shares outstanding: 267.71m
- Website: https://www.opentext.com
Number of Employees
Location
- Open Text Corporation
- 275 Frank Tompa Drive
- Waterloo
- Ontario
- N2L 0A1
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/06/30 |
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.