30.2 USD
-0.74 (-2.39%)
30.06 USD
-0.14 (-0.46%)
Overall OTEX gets a fundamental rating of 5 out of 10. We evaluated OTEX against 277 industry peers in the Software industry. OTEX scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OTEX. Finally OTEX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- OTEX had positive earnings in the past year.
- In the past year OTEX had a positive cash flow from operations.
- Each year in the past 5 years OTEX has been profitable.
- In the past 5 years OTEX always reported a positive cash flow from operatings.
1.2 Ratios
- OTEX has a better Return On Assets (3.70%) than 68.95% of its industry peers.
- OTEX's Return On Equity of 12.61% is fine compared to the rest of the industry. OTEX outperforms 76.17% of its industry peers.
- OTEX has a better Return On Invested Capital (7.53%) than 77.26% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for OTEX is below the industry average of 10.78%.
- The 3 year average ROIC (6.00%) for OTEX is below the current ROIC(7.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 12.61% | ||
| ROIC | 7.53% |
ROA(3y)2.44%
ROA(5y)2.89%
ROE(3y)8.64%
ROE(5y)8.67%
ROIC(3y)6%
ROIC(5y)6.21%
1.3 Margins
- With a decent Profit Margin value of 9.60%, OTEX is doing good in the industry, outperforming 70.40% of the companies in the same industry.
- OTEX's Profit Margin has improved in the last couple of years.
- OTEX has a better Operating Margin (20.73%) than 86.28% of its industry peers.
- OTEX's Operating Margin has been stable in the last couple of years.
- The Gross Margin of OTEX (72.51%) is comparable to the rest of the industry.
- OTEX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.73% | ||
| PM (TTM) | 9.6% | ||
| GM | 72.51% |
OM growth 3Y0.5%
OM growth 5Y0.68%
PM growth 3Y-9.47%
PM growth 5Y2.29%
GM growth 3Y1.26%
GM growth 5Y1.3%
2. Health
2.1 Basic Checks
- OTEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- OTEX has less shares outstanding than it did 1 year ago.
- OTEX has less shares outstanding than it did 5 years ago.
- OTEX has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.30, we must say that OTEX is in the distress zone and has some risk of bankruptcy.
- OTEX has a Altman-Z score (1.30) which is in line with its industry peers.
- OTEX has a debt to FCF ratio of 7.04. This is a slightly negative value and a sign of low solvency as OTEX would need 7.04 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.04, OTEX is in line with its industry, outperforming 52.35% of the companies in the same industry.
- A Debt/Equity ratio of 1.60 is on the high side and indicates that OTEX has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.60, OTEX is doing worse than 80.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.04 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.77
WACC9.78%
2.3 Liquidity
- A Current Ratio of 0.87 indicates that OTEX may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.87, OTEX is doing worse than 81.95% of the companies in the same industry.
- OTEX has a Quick Ratio of 0.87. This is a bad value and indicates that OTEX is not financially healthy enough and could expect problems in meeting its short term obligations.
- OTEX's Quick ratio of 0.87 is on the low side compared to the rest of the industry. OTEX is outperformed by 81.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for OTEX have decreased by -3.42% in the last year.
- Measured over the past 5 years, OTEX shows a small growth in Earnings Per Share. The EPS has been growing by 5.79% on average per year.
- Looking at the last year, OTEX shows a decrease in Revenue. The Revenue has decreased by -7.58% in the last year.
- OTEX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.69% yearly.
EPS 1Y (TTM)-3.42%
EPS 3Y5.95%
EPS 5Y5.79%
EPS Q2Q%12.9%
Revenue 1Y (TTM)-7.58%
Revenue growth 3Y13.94%
Revenue growth 5Y10.69%
Sales Q2Q%1.51%
3.2 Future
- The Earnings Per Share is expected to grow by 8.33% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.54% on average over the next years.
EPS Next Y10.02%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue Next Year1.28%
Revenue Next 2Y1.54%
Revenue Next 3Y1.48%
Revenue Next 5Y4.54%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 7.65, which indicates a rather cheap valuation of OTEX.
- Based on the Price/Earnings ratio, OTEX is valued cheaper than 91.34% of the companies in the same industry.
- When comparing the Price/Earnings ratio of OTEX to the average of the S&P500 Index (27.47), we can say OTEX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.63, the valuation of OTEX can be described as very cheap.
- OTEX's Price/Forward Earnings ratio is rather cheap when compared to the industry. OTEX is cheaper than 92.78% of the companies in the same industry.
- OTEX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OTEX is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
- OTEX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OTEX is cheaper than 94.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.4 | ||
| EV/EBITDA | 7.52 |
4.3 Compensation for Growth
- OTEX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of OTEX may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)1.32
EPS Next 2Y9.09%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
- OTEX has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of OTEX has falen by -22.62%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- OTEX's Dividend Yield is rather good when compared to the industry average which is at 0.52. OTEX pays more dividend than 96.39% of the companies in the same industry.
- OTEX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
- The dividend of OTEX is nicely growing with an annual growth rate of 8.34%!
- OTEX has been paying a dividend for at least 10 years, so it has a reliable track record.
- OTEX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.34%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 54.34% of the earnings are spent on dividend by OTEX. This is a bit on the high side, but may be sustainable.
- The dividend of OTEX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.34%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
30.2
-0.74 (-2.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners82.98%
Inst Owner Change-0.21%
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap7.61B
Revenue(TTM)5.19B
Net Income(TTM)498.12M
Analysts78
Price Target39.71 (31.49%)
Short Float %4.17%
Short Ratio9.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend1.04
Dividend Growth(5Y)8.34%
DP54.34%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.93%
Min EPS beat(2)4.13%
Max EPS beat(2)15.74%
EPS beat(4)4
Avg EPS beat(4)11.61%
Min EPS beat(4)4.13%
Max EPS beat(4)17.92%
EPS beat(8)6
Avg EPS beat(8)6.82%
EPS beat(12)10
Avg EPS beat(12)10.63%
EPS beat(16)12
Avg EPS beat(16)8.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)-0.42%
Revenue beat(8)1
Avg Revenue beat(8)-1.88%
Revenue beat(12)3
Avg Revenue beat(12)-1.07%
Revenue beat(16)3
Avg Revenue beat(16)-1.18%
PT rev (1m)0.65%
PT rev (3m)-11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.47 | ||
| P/FCF | 8.4 | ||
| P/OCF | 7.21 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.52 |
EPS(TTM)3.95
EY13.08%
EPS(NY)4.56
Fwd EY15.09%
FCF(TTM)3.59
FCFY11.9%
OCF(TTM)4.19
OCFY13.88%
SpS20.58
BVpS15.68
TBVpS-21.2
PEG (NY)0.76
PEG (5Y)1.32
Graham Number37.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 12.61% | ||
| ROCE | 9.76% | ||
| ROIC | 7.53% | ||
| ROICexc | 8.36% | ||
| ROICexgc | 131.42% | ||
| OM | 20.73% | ||
| PM (TTM) | 9.6% | ||
| GM | 72.51% | ||
| FCFM | 17.46% |
ROA(3y)2.44%
ROA(5y)2.89%
ROE(3y)8.64%
ROE(5y)8.67%
ROIC(3y)6%
ROIC(5y)6.21%
ROICexc(3y)6.7%
ROICexc(5y)7.26%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.77%
ROCE(5y)8.05%
ROICexgc growth 3Y40.72%
ROICexgc growth 5Y10.07%
ROICexc growth 3Y2.2%
ROICexc growth 5Y2.95%
OM growth 3Y0.5%
OM growth 5Y0.68%
PM growth 3Y-9.47%
PM growth 5Y2.29%
GM growth 3Y1.26%
GM growth 5Y1.3%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.04 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 23.51% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 61.57% | ||
| Profit Quality | 181.84% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.3 |
F-Score6
WACC9.78%
ROIC/WACC0.77
Cap/Depr(3y)20.3%
Cap/Depr(5y)18.32%
Cap/Sales(3y)2.76%
Cap/Sales(5y)2.57%
Profit Quality(3y)255.78%
Profit Quality(5y)250.53%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.42%
EPS 3Y5.95%
EPS 5Y5.79%
EPS Q2Q%12.9%
EPS Next Y10.02%
EPS Next 2Y9.09%
EPS Next 3Y8.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.58%
Revenue growth 3Y13.94%
Revenue growth 5Y10.69%
Sales Q2Q%1.51%
Revenue Next Year1.28%
Revenue Next 2Y1.54%
Revenue Next 3Y1.48%
Revenue Next 5Y4.54%
EBIT growth 1Y2.5%
EBIT growth 3Y14.51%
EBIT growth 5Y11.45%
EBIT Next Year14.34%
EBIT Next 3Y7.75%
EBIT Next 5YN/A
FCF growth 1Y59.09%
FCF growth 3Y-8.21%
FCF growth 5Y-4.86%
OCF growth 1Y52.11%
OCF growth 3Y-5.42%
OCF growth 5Y-2.74%
OPEN TEXT CORP / OTEX FAQ
What is the ChartMill fundamental rating of OPEN TEXT CORP (OTEX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to OTEX.
What is the valuation status of OPEN TEXT CORP (OTEX) stock?
ChartMill assigns a valuation rating of 9 / 10 to OPEN TEXT CORP (OTEX). This can be considered as Undervalued.
Can you provide the profitability details for OPEN TEXT CORP?
OPEN TEXT CORP (OTEX) has a profitability rating of 7 / 10.
What are the PE and PB ratios of OPEN TEXT CORP (OTEX) stock?
The Price/Earnings (PE) ratio for OPEN TEXT CORP (OTEX) is 7.65 and the Price/Book (PB) ratio is 1.93.
Is the dividend of OPEN TEXT CORP sustainable?
The dividend rating of OPEN TEXT CORP (OTEX) is 7 / 10 and the dividend payout ratio is 54.34%.