Company Analysis

Open Text Corporation OTEX

A comprehensive view of key metrics, scores, and financial health for Open Text Corporation

Overview of Open Text Corporation

OTEX NMS

Technology Software - Application Framework: Software & SaaS Mid Cap

Open Text Corporation (OTEX), is a Mid Cap company, in the Software - Application industry, last closed at $22.77, about 302.4% undervalued vs fair value, -23.8% 1Y return, placing in the top 25% of its sector.

Metrics Rev Growth -10.4% ROE 10.7% Gross Margin 72.3% Div Yield 3.59%

USD 22.77

-2.40%

(Delayed)

• Vol 90d: 40.9%

52-Week Range

Low

20.01

14%

Now 22.77

High

39.69

Market Cap

$5.57B

Enterprise Value

$10.73B

Overall Score

View breakdown

Overall

Growth

Fair

Profitability

Good

Health

Fair

Efficiency

Fair

Valuation

Good

Growth

Fair

Profitability

Good

Health

Fair

Efficiency

Fair

Valuation

Good

Completeness: 82%

Confidence: 85%

Updated: Jul 5

Top Beats

Quick Facts

Website https://www.opentext.com

HQ Waterloo, ON

Employees 21,300

Fiscal year Jun 30

Next Events

Earnings Aug 6 Estimated

Fair Value Snapshot

Bear Base Bull

$84

$92

$101

Current: $22.77 +302% vs base

Engine Room Money Flow™

Mid Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps

Total Revenue

$5.2B

-10.4%%

Gross Profit

$3.7B

-10.9%%

Operating Income (GAAP)

$1.0B

1.6%%

Operating Cash Flow

$830.6M

-14.2%%

Money Flow Bridge

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Flow Direction: Money moves from left to right

Components: Breakdown shows composition of each stage

Industry-Specific: Software & SaaS

Data Quality Notes

Note: 'Free Cash Flow' here is GAAP FCF (Operating Cash Flow − CapEx). Many software companies report an adjusted FCF that also adds back SBC; the Rule of 40 and FCF Margin shown use GAAP FCF, which is the more conservative and investor-relevant figure.
Rule of 40 score is 2.9 — below the 40-point benchmark. The company is not yet balancing growth and profitability at the level typically expected by institutional SaaS investors.

Quality & Reliability Indicators

Gross Margin

72.3%

Excellent

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$815.4M

118.6% of FCF

Where It Leaks

Cash Flow Health significant issues

Overall assessment of cash flow efficiency and conversion quality.

Active Leaks

2/4

Improving

High Impact

Critical

Medium

Working Capital Trap

Current: -37.3%

Conversion Leak

Worsening

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Scores based on quantitative metrics and qualitative factors

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Pricing Power

Strong

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Recurring Revenue Stickiness

Developing

Innovation Engine

Developing

Cash Scalability

Moderate

Capital Efficiency

Moderate

Balance Sheet Resilience

Developing

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 91% Coverage

Click axes to expand details. Marker shows current allocation.

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Growth

38th percentile vs peers

Key Signals

Revenue CAGR 3Y 13.9% 62p EPS Growth YoY 2.07 89p Def Rev Growth 0.0% 34p Rev Growth YoY -10.4% 15p TSR -44.0% 19p

Strengths

Superior capital returns - 2 return metrics above peer median
EPS Growth YoY in top 20% of peers (2.07, 89th percentile)
Operating Margin in top 20% of peers (20.1%, 88th percentile)
Consistently strong margins across 4 metrics

Risks

Rev Growth YoY in bottom 20% of peers (-10.4%)

Profitability

62th percentile vs peers

Key Signals

Strengths

Risks

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Safety

35th percentile vs peers

Key Signals

Strengths

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Two Futures

Scenario-based fair value ranges for Open Text Corporation.

WACC X.X%

X%XX%

Rev CAGR 5Y X.X%

-XX%XX%

Op Margin XX.X%

-XX%XX%

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Bear

- - -

- upside

Base

$91.62

- - -

+302.4% vs current

Snapshot base estimate

Bull

- - -

- upside

Fair Value Range Current: $-

$- $- $-

Open Text Corporation OTEX

Overview of Open Text Corporation

Quick Facts

Next Events

Fair Value Snapshot

Flow Steps

Money Flow Bridge

Data Quality Notes

Quality & Reliability Indicators

Gross Margin

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Working Capital Trap

Locked Leak

Locked Leak

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Pricing Power

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Recurring Revenue Stickiness

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Innovation Engine

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Cash Scalability

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Capital Efficiency

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Balance Sheet Resilience

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Growth

Profitability

Safety

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