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Open Text

TOR:OTEX · CA6837151068
SoftwareX-Large

360

57
EV / EBIT97
Price / Owner Earnings71
Owner Earnings Yield97
Dividend Yield99
Price/Sales83
EV / Gross Profit91
Price/Book79
Return on Capital57
Cash Return on Capital45
Return on Equity54
EBIT Margin74
Gross Profitability41
Cash Conversion57
Accruals42
Owner Earnings Margin65
Sales growth23
Profit Growth85
Long-Term EPS Growth24
Owner Earnings Growth48
Reinvestment60
Price momentum63
Debt load31
Refinancing11
Debt Payback9
Liquidity56
Analyst ratings7
Opinion Changes50
Price Target Upside42
Market mood33
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Open Text clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryCanada
IndustrySoftware
SizeX-Large
TypePublic Company
ExchangeNASDAQGS
Founded1991
Employees19,207
Websiteopentext.com
ISINCA6837151068
Last UpdateApr 2, 2026
Indices
NASDAQ (USA)TSX Composite (Canada)
Themes
Process AutomationCloud InfrastructureCloud Data ServicesCloud StorageArtificial IntelligenceData IntegrationDevSecOpsCloud ManagementSoftware DevelopmentContentData CenterInformation ServicesInformation TechnologyNetwork SecuritySoftware

Description

Open Text Corporation (OpenText), an Information Management company, provides software and services that empower digital businesses of all sizes to become more intelligent, connected, secure and responsible. OpenText’s Information Management solutio…

Analysis

Bargain bin

Open Text Corporation is priced cheaply, and that invites the natural question of why, since the underlying business scores below average.

On valuation, the picture is attractive. The owner-earnings multiple stands at 6.7×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around -9% a year, against analyst forecasts of 5%. The price, in other words, assumes less than the experts do.

Growth is tepid; the safety picture is stretched. The company scores 12/20 on our value-creation score: creating some value.

Flags to be aware of: The financial cushion is thinner than comfortable. A large part of the company's book value is the price paid for past acquisitions. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
73
2023202420252026

All-time high

99

Jan 2023

All-time low

33

May 2025

Average rank

60

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
83
86
76
71
Price/Earnings
80
100
94
88
Price/Book
79
74
67
76
Dividend Yield
99
100
99
98
Value (overall)
100
100
100
98

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →