NASDAQ
OTEX
Last Price
US $22.15
KEY FIGURES
MKT CAP
$5.4B
EPS
TTM
$2.07
PEG
TTM
N/M
P/E
TTM
10.78x
P/S
TTM
1.04x
YIELD
4.98%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
12.93%
Return on equity
ROIC: 8.35%
Valuation History
10.8X
Price to Earnings
EV/EBITDA: 6.6X
Cash flow
Profit margin
11.01%
(FY vs FY)
EBITDA Y/Y
8.76%
(FY vs FY)
Cash flow Y/Y
-4.86%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $22.15
-81.49%
Default assumptions
EBITDA Multiple
Fair Value
Market $22.15
-3.84%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Open Text Corporation cash flow to debt ratio of 12.50% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Open Text Corporation's free cash flow has decreased -14.97% from $808.40M last year to $687.40M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Open Text Corporation's debt to equity ratio is 1.62, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Open Text Corporation's debt has increased relative to shareholder equity from 1.59 last year to 1.62 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Open Text Corporation has a net debt to EBITDA ratio of 3.66x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Open Text Corporation's interest coverage ratio of 3.12 indicates that earnings with margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Open Text Corporation's profit margin has increased (22.81%) in the last year from 8.06% to 9.90%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Open Text Corporation's short-term liabilities of $2.75G exceed its short-term assets of $2.20G, signaling financial risk
Decreasing performance - ROA.
Open Text Corporation's return on assets of 3.84% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Open Text Corporation's return on equity of 12.93%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Open Text Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Open Text Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Open Text Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Open Text Corporation has a free cash flow yield of 12.82%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Open Text Corporation's yearly earnings has decreased -5.35% since last year from $460.50M to $435.87M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Open Text Corporation's yearly revenue has decreased -10.42% since last year from $5.77G to $5.17G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 8.35% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Open Text Corporation's 3-year revenue CAGR of 14.60% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Open Text Corporation had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Open Text Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Open Text Corporation is overvalued relative to its fair value price of 4.10 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Open Text Corporation has an earnings yield of 9.38%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Open Text Corporation is overvalued relative to its fair value price of 21.30 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Open Text Corporation has an EV/EBITDA ratio of 6.64x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Open Text Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Open Text Corporation has a price-to-book ratio of 1.38x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Open Text Corporation has a price-to-sales ratio of 1.03x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue