A Business at a Glance
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OPEN TEXT CORP
OTEX
$5.9B
Mkt Cap
$22.37
+3.95%
OPEN TEXT CORP (OTEX) has a current P/E ratio of 13.6, compared to its historical median P/E of 27.8. The stock is currently considered Fair based on its historical valuation range.
OPEN TEXT CORP (OTEX) has a 5-year average return on invested capital (ROIC) of 6.7%. This is below average and may indicate limited pricing power.
OPEN TEXT CORP (OTEX) has a market capitalization of $5.4B. It is classified as a mid-cap stock.
Yes, OPEN TEXT CORP (OTEX) pays a dividend with a trailing twelve-month yield of 4.97%. The company also returns capital through share buybacks, with a buyback yield of 10.15%.
Based on historical P/E analysis, OPEN TEXT CORP (OTEX) appears fair. The current P/E of 13.6 is 51% below its historical median of 27.8. The estimated fair value CAGR (P/E method) is 5.9%.
OPEN TEXT CORP (OTEX) operates in the Services-Computer Integrated Systems Design industry, within the Technology sector.
OPEN TEXT CORP (OTEX) reported annual revenue of $5.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Table of Contents Incorporated in 1991, OpenText has grown to be a leader in Information Management offering a comprehensive line of Information Management products and services that power and protect businesses of all sizes. OpenText’s Information Management solutions manage the creation, capture, use, analysis and lifecycle of structured and unstructured data. Our Information Management solutions are designed to help organizations extract value and insights from their information, secure that information and meet the growing list of privacy and compliance requirements. OpenText helps customers improve efficiencies, redefine business models and transform industries. Our products are available in private cloud, public cloud, off-cloud and application programming interface (API) cloud, or any combination thereof, to support the customer’s preferred deployment option.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Customer support revenue | $1.33B | $1.33B | $1.92B | $2.71B | $2.33B | 45% |
Cloud services and subscriptions | $1.41B | $1.54B | $1.70B | $1.82B | $1.86B | 36% |
License revenue (perpetual, term and subscriptions) | $385M | $358M | $539M | $834M | $626M | 12% |
Professional service and other revenue | $260M | $270M | $331M | $402M | $352M | 7% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.2B | 5.2B | 5.8B | 4.5B | 3.5B | 3.4B |
| Net Income | 516M | 436M | 465M | 150M | 397M | 311M |
| EPS | $2.08 | $1.65 | $1.71 | $0.56 | $1.46 | $1.14 |
| Free Cash Flow | 810M | 687M | 808M | 655M | 889M | 812M |
| ROIC | 8.8% | 8.8% | 5.5% | 3.9% | 7.9% | 7.4% |
| Gross Margin | 73.1% | 72.3% | 72.6% | 70.6% | 69.6% | 69.4% |
| Debt/Equity | 1.57 | 1.62 | 1.52 | 2.21 | 1.05 | 0.88 |
| Dividends/Share | $1.11 | $1.05 | $1.00 | $0.97 | $0.88 | $0.78 |
| Operating Income | 944M | 893M | 887M | 516M | 645M | 741M |
| Operating Margin | 18.1% | 17.3% | 15.4% | 11.5% | 18.5% | 21.9% |
| ROE | 13.0% | 10.7% | 11.3% | 3.7% | 9.8% | 7.7% |
| Shares Outstanding | 242M | 264M | 272M | 269M | 272M | 273M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.6B | 1.9B | 1.8B | 2.3B | 2.8B | 2.9B | 3.1B | 3.4B | 3.5B | 4.5B | 5.8B | 5.2B | 5.2B |
| Gross Margin | 68.6% | 67.7% | 68.5% | 66.8% | 66.2% | 67.6% | 67.7% | 69.4% | 69.6% | 70.6% | 72.6% | 72.3% | 73.1% |
| R&D | 177M | 196M | 194M | 281M | 323M | 322M | 370M | 421M | 440M | 659M | 864M | 756M | 686M |
| SG&A | 142M | 163M | 140M | 170M | 205M | 208M | 238M | 264M | 317M | 420M | 577M | 428M | 431M |
| EBIT | 301M | 349M | 369M | 355M | 507M | 567M | 504M | 741M | 645M | 516M | 887M | 893M | 944M |
| Op. Margin | 18.5% | 18.8% | 20.2% | 15.5% | 18.0% | 19.8% | 16.2% | 21.9% | 18.5% | 11.5% | 15.4% | 17.3% | 18.1% |
| Net Income | 218M | 234M | 284M | 1.0B | 242M | 286M | 234M | 311M | 397M | 150M | 465M | 436M | 516M |
| Net Margin | 13.4% | 12.7% | 15.6% | 44.8% | 8.6% | 10.0% | 7.5% | 9.2% | 11.4% | 3.4% | 8.1% | 8.4% | 9.9% |
| Non-Recurring | 21M | 16M | 15M | 22M | 15M | 8.4M | 91M | 22M | 20M | 169M | 564M | 142M | 67M |
| Returns on Capital | |||||||||||||
| ROIC | 11.8% | 11.8% | 13.1% | 8.2% | 5.6% | 6.6% | 5.7% | 7.4% | 7.9% | 3.9% | 5.5% | 8.8% | 8.8% |
| ROE | 14.6% | 13.5% | 14.9% | 37.2% | 6.7% | 7.5% | 5.9% | 7.7% | 9.8% | 3.7% | 11.3% | 10.7% | 13.0% |
| ROA | 6.7% | 5.7% | 6.0% | 16.2% | 3.2% | 3.6% | 2.6% | 3.1% | 4.0% | 1.1% | 3.0% | 3.1% | 3.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 417M | 523M | 526M | 440M | 708M | 876M | 955M | 876M | 982M | 779M | 968M | 831M | 979M |
| Free Cash Flow | 375M | 446M | 456M | 361M | 603M | 812M | 882M | 812M | 889M | 655M | 808M | 687M | 810M |
| Owner Earnings | 211M | 261M | 257M | 64M | 224M | 379M | 836M | 739M | 824M | 541M | 696M | 595M | 132M |
| CapEx | 42M | 77M | 70M | 80M | 105M | 64M | 73M | 64M | 93M | 124M | 159M | 143M | 170M |
| Maint. CapEx | 186M | 240M | 242M | 346M | 457M | 471M | 89M | 85M | 88M | 108M | 132M | 131M | 767M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.9M | 16M | 28M | 13M | 0 |
| D&A | 186M | 240M | 242M | 346M | 457M | 471M | 89M | 85M | 88M | 108M | 132M | 131M | 767M |
| CapEx/OCF | 10.1% | 14.7% | 13.3% | 18.1% | 14.9% | 7.3% | 7.6% | 7.3% | 9.5% | 15.9% | 16.5% | 17.2% | 17.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 75M | 88M | 99M | 121M | 146M | 169M | 189M | 211M | 238M | 260M | 267M | 272M | 269M |
| Dividend Yield | 1.9% | 0.8% | 1.0% | 1.8% | 2.0% | 2.0% | 2.0% | 2.0% | 2.1% | 3.1% | 2.8% | 3.6% | 5.0% |
| Share Buybacks | 1.3M | 10M | 11M | 8.2M | 0 | 27M | 0 | 119M | 177M | 0 | 150M | 413M | 550M |
| Buyback Yield | 0.0% | N/A | N/A | 0.1% | N/A | 0.3% | N/A | 1.0% | 1.9% | N/A | 1.9% | 5.5% | 10.1% |
| Stock-Based Comp | 20M | 22M | 26M | 31M | 28M | 27M | 30M | 52M | 70M | 130M | 140M | 105M | 81M |
| Debt Repayment | 46M | 530M | 8.0M | 58M | 1.1B | 10M | 1.7B | 610M | 860M | 203M | 2.6B | 36M | 36M |
| Balance Sheet | |||||||||||||
| Net Debt | 954M | 854M | 858M | 2.3B | 1.9B | 1.7B | 2.5B | 2.0B | 2.5B | 7.7B | 5.1B | 5.2B | 5.0B |
| Cash & Equiv. | 428M | 700M | 1.3B | 443M | 683M | 941M | 1.7B | 1.6B | 1.7B | 1.2B | 1.3B | 1.2B | 1.3B |
| Long-Term Debt | 1.3B | 1.6B | 2.1B | 2.6B | 2.6B | 2.6B | 3.6B | 3.6B | 4.2B | 8.6B | 6.4B | 6.3B | 6.2B |
| Debt/Equity | 0.84 | 0.86 | 1.09 | 0.78 | 0.71 | 0.67 | 1.05 | 0.88 | 1.05 | 2.21 | 1.52 | 1.62 | 1.57 |
| Interest Coverage | 10.8 | 6.4 | 4.8 | 2.9 | 3.7 | 4.2 | 3.4 | 4.9 | 4.1 | 1.6 | 101.5 | 119.6 | 119.6 |
| Equity | 1.6B | 1.8B | 2.0B | 3.5B | 3.7B | 3.9B | 4.0B | 4.1B | 4.0B | 4.0B | 4.2B | 3.9B | 4.0B |
| Total Assets | 3.9B | 4.4B | 5.2B | 7.5B | 7.8B | 7.9B | 10.2B | 9.6B | 10.2B | 17.1B | 14.2B | 13.8B | 13.3B |
| Total Liabilities | 2.3B | 2.5B | 3.2B | 3.9B | 4.0B | 4.0B | 6.2B | 5.5B | 6.1B | 13.1B | 10.0B | 9.8B | -55M |
| Intangibles | 725M | 679M | 646M | 1.5B | 1.3B | 1.1B | 1.6B | 1.2B | 1.1B | 4.1B | 2.5B | 2.0B | 1.6B |
| Retained Earnings | 716M | 863M | 993M | 1.9B | 2.0B | 2.1B | 2.2B | 2.2B | 2.2B | 2.0B | 2.1B | 1.9B | 1.9B |
| Working Capital | 175M | 445M | 1.0B | -124M | 333M | 547M | 482M | 840M | 817M | -944M | -523M | -546M | -151M |
| Current Assets | 816M | 1.1B | 1.7B | 1.0B | 1.3B | 1.6B | 2.4B | 2.2B | 2.3B | 2.3B | 2.3B | 2.2B | 2.4B |
| Current Liabilities | 641M | 624M | 671M | 1.1B | 995M | 1.0B | 1.9B | 1.4B | 1.5B | 3.2B | 2.8B | 2.7B | 2.5B |
| Per Share Data | |||||||||||||
| EPS | 0.91 | 0.48 | 0.59 | 4.01 | 0.91 | 1.06 | 0.86 | 1.14 | 1.46 | 0.56 | 1.71 | 1.65 | 2.08 |
| Owner EPS | 0.88 | 0.53 | 0.53 | 0.25 | 0.84 | 1.41 | 3.07 | 2.71 | 3.03 | 2.02 | 2.56 | 2.25 | 0.54 |
| Book Value | 6.81 | 3.71 | 4.07 | 13.81 | 13.96 | 14.42 | 14.71 | 15.04 | 14.82 | 14.97 | 15.44 | 14.87 | 16.36 |
| Cash Flow/Share | 1.73 | 1.06 | 1.08 | 1.72 | 2.66 | 3.25 | 3.50 | 3.21 | 3.61 | 2.90 | 3.56 | 3.14 | 5.30 |
| Dividends/Share | 0.31 | 0.18 | 0.21 | 0.48 | 0.55 | 0.63 | 0.70 | 0.78 | 0.88 | 0.97 | 1.00 | 1.05 | 1.11 |
| Shares Out. | 241.0M | 493.3M | 486.3M | 255.8M | 266.2M | 269.3M | 272.4M | 272.5M | 272.0M | 268.5M | 272.0M | 264.2M | 242.2M |
| Valuation | |||||||||||||
| P/E Ratio | 20.7 | 16.9 | 20.0 | 6.4 | 32.0 | 32.9 | 42.7 | 39.9 | 23.6 | 67.2 | 16.7 | 17.1 | 10.8 |
| P/FCF | 12.0 | 17.9 | 25.0 | 18.2 | 12.9 | 11.6 | 11.3 | 15.3 | 10.6 | 15.4 | 9.6 | 10.8 | 6.7 |
| EV/EBIT | 14.0 | 9.4 | 12.0 | 18.4 | 14.0 | 14.9 | 24.8 | 19.4 | 18.5 | 34.4 | 14.5 | 14.2 | 11.0 |
| Price/Book | 2.7 | 2.2 | 2.9 | 1.9 | 2.1 | 2.4 | 2.5 | 3.0 | 2.3 | 2.5 | 1.8 | 1.9 | 1.4 |
| Price/Sales | 2.5 | 2.8 | 2.6 | 2.9 | 2.6 | 2.9 | 3.1 | 3.2 | 3.2 | 1.9 | 1.6 | 1.4 | 1.0 |
| FCF Yield | 8.3% | 11.2% | 8.0% | 5.5% | 7.8% | 8.6% | 8.8% | 6.5% | 9.5% | 6.5% | 10.4% | 9.2% | 14.9% |
| Market Cap | 4.5B | 4.0B | 5.7B | 6.6B | 7.7B | 9.4B | 10.0B | 12.4B | 9.4B | 10.1B | 7.7B | 7.5B | 5.4B |
| Avg. Price | 16.69 | 21.23 | 19.47 | 26.10 | 27.97 | 31.10 | 35.23 | 39.45 | 41.21 | 31.43 | 34.76 | 28.18 | 22.37 |
| Year-End Price | 18.71 | 16.18 | 23.39 | 25.73 | 29.10 | 34.87 | 36.73 | 45.52 | 34.50 | 37.62 | 28.49 | 28.21 | 22.37 |
OPEN TEXT CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
OPEN TEXT CORP trades at 13.6x trailing earnings, compared to its 15-year median P/E of 27.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 8.6x vs a median of 12.2x. The company's 5-year average ROIC is 6.7% with a gross margin of 70.9%. Total shareholder yield (dividends + buybacks) is 15.1%. At current prices, the estimated annualized return to fair value is -2.0%.
OPEN TEXT CORP (OTEX) has a net profit margin of 8.4%. This is a modest margin.
OPEN TEXT CORP (OTEX) generated $687 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
OPEN TEXT CORP (OTEX) has a debt-to-equity ratio of 1.62. This indicates higher leverage, which may increase financial risk.
OPEN TEXT CORP (OTEX) reported earnings per share (EPS) of $1.65 in its most recent fiscal year.
OPEN TEXT CORP (OTEX) has a return on equity (ROE) of 10.7%. This indicates moderate shareholder returns.
OPEN TEXT CORP (OTEX) has a 5-year average gross margin of 70.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for OPEN TEXT CORP (OTEX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
OPEN TEXT CORP (OTEX) has a book value per share of $14.87, based on its most recent annual SEC filing.
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