OTEXOpenText exhibits strong fundamental performance with robust profitability and manageable debt. Thematic alignment with digital transformation is positive, while technical indicators suggest a stable, slightly bullish trend. Consider for long-term growth.
OpenText is well-positioned within the information management and cloud solutions sector, benefiting from trends in digital transformation and data management. Expansion into cybersecurity and AI further strengthens its thematic relevance.
OpenText demonstrates strong financial health with improving profitability, consistent revenue growth, and a well-managed balance sheet. Its dividend yield adds an income component.
The stock is in an uptrend, trading above key moving averages. Momentum indicators are mixed, suggesting potential for consolidation, but the overall trend remains positive.
| Factor | Score |
|---|---|
| Digital Transformation & Cloud Adoption | 85 |
| Cybersecurity Demand | 78 |
| AI and Automation Integration | 70 |
| Market Competition | 65 |
| Regulatory Landscape | 72 |
| Factor | Score |
|---|---|
| Valuation | 78 |
| Profitability | 75 |
| Growth | 88 |
| Balance Sheet Health | 65 |
| Cash Flow Generation | 82 |
| Dividend | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 70 |
| Volume | 75 |
| Short-Term Trend | 85 |
| Overbought/Oversold Indicators | 50 |
Consistent EPS Surprises
OpenText has surpassed EPS estimates in 10 out of the last 12 reported quarters, indicating a consistent ability to meet or exceed analyst expectations.
Undervalued Price-to-Sales Ratio
The current P/S ratio of 2.0 is below the TTM P/S of 19.3, suggesting potential undervaluation relative to its own historical performance. However, it's important to compare this with industry averages and growth prospects.
High Quarterly P/S Ratio
The quarterly P/S ratio for Q1 2025 at 5.2 and Q4 2024 at 5.4 is significantly higher than the annual TTM P/S of 2.0, indicating a potential disconnect and elevated valuation expectations in the short term.
Fluctuating Revenue Growth
While annual revenue grew from $4.48B in 2023 to $5.77B in 2024, quarterly revenue has shown some volatility, with a dip in Q3 2024 and a significant jump in Q2 2024, making future revenue predictability a concern.
June 2025
6
Ex-Dividend Date
June 2025
20
Next Dividend Date
August 2025
8
Next Earnings Date
H: $0.89
A: $0.83
L: $0.73
H: 1.31B
A: 1.30B
L: 1.29B
Open Text Corporation engages in the provision of information management products and services. The company offers content services, including content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond, and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; analytics and AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities; and provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. The company was incorporated in 1991 and is headquartered in Waterloo, Canada.
32.00 USD
The 39 analysts offering 1 year price forecasts for OTEX have a max estimate of 48.00 and a min estimate of 28.00.