NASDAQ
OTEX
Last Price
US $24.54
KEY FIGURES
MKT CAP
$6.0B
EPS
TTM
$4.54
PEG
TTM
0.03x
P/E
TTM
5.41x
P/S
TTM
0.67x
YIELD
4.48%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
10.73%
Return on equity
ROIC: 8.49%
Valuation History
17.7X
Price to Earnings
EV/EBITDA: 8.8X
Cash flow
Profit margin
8.38%
(FY vs FY)
EBITDA Y/Y
2.44%
(FY vs FY)
Cash flow Y/Y
-4.86%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $24.54
-83.29%
Default assumptions
EBITDA Multiple
Fair Value
Market $24.54
-13.20%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Open Text Corporation cash flow to debt ratio of 349.16% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong 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 stability - Healthy debt to equity ratio.
Open Text Corporation's debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Open Text Corporation's debt has decreased relative to shareholder equity from 1.69 last year to 0.06 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Open Text Corporation has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Open Text Corporation's interest coverage ratio of 3.31 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 (46.59%) in the last year from 8.43% to 12.36%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Open Text Corporation's short-term liabilities of $2.62G exceed its short-term assets of $2.12G, signaling financial risk
Increasing performance - ROA.
Open Text Corporation's return on assets of 8.62% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Open Text Corporation's return on equity of 28.29%, is higher than 15.00%, indicating good 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 11.54%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Open Text Corporation's yearly earnings has increased 47.53% since last year from $435.87M to $643.02M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Open Text Corporation's yearly revenue has increased 1.51% since last year from $5.17G to $5.25G, signaling increasing performance
Increasing performance - ROIC.
ROIC 13.98% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Open Text Corporation's 3-year revenue CAGR of 5.00% 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 18.50%, 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 3.57x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Open Text Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Open Text Corporation has a price-to-book ratio of 0.92x, 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 0.67x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue