Open Text Corp Stock Research

Market Summary

USD42.10+0.47

Market Closed

1.13%

OTEX Alerts

Big jump in Revenue (Y/Y)

OTEX Stock Price

OTEX RSI Chart

OTEX Valuation

Market Cap

11.4B

Price/Earnings (Trailing)

37.79

Price/Sales (Trailing)

2.92

EV/EBITDA

47.84

Price/Free Cashflow

12.43

OTEX Price/Sales (Trailing)

OTEX Profitability

EBT Margin

12.42%

Return on Equity

7.73%

Return on Assets

2.84%

Free Cashflow Yield

8.04%

OTEX Fundamentals

OTEX Revenue

Revenue (TTM)

3.9B

Revenue Y/Y

41.07%

Revenue Q/Q

38.69%

OTEX Earnings

Earnings (TTM)

301.3M

Earnings Y/Y

-22.93%

Earnings Q/Q

-77.73%

Price Action

52 Week Range

24.9142.35

(Low)(High)

Last 7 days

1.0%

Last 30 days

12.0%

Last 90 days

19.3%

Trailing 12 Months

2.0%

OTEX Financial Health

Current Ratio

2.31

Debt/Equity

1.1

Debt/Cashflow

0.22

OTEX Investor Care

Dividend Yield

2.26%

Dividend/Share (TTM)

0.95

Shares Dilution (1Y)

0.09%

Diluted EPS (TTM)

1.12

Peers (Alternatives to Open Text)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MSFT	2.5T	207.6B	10.18%	22.75%	36.14	12.02	7.81%	-4.74%
ADBE	200.3B	18.0B	26.39%	-1.11%	42.28	11.13	11.50%	-1.86%
AZPN	-	-	-7.69%	-18.65%	-	-	-	-
ORCL	285.9B	48.0B	11.72%	46.17%	34.14	5.96	14.66%	10.75%
CRM	214.9B	32.2B	10.60%	13.07%	567.14	6.68	16.92%	-62.21%
ZM	20.5B	4.4B	10.31%	-40.23%	198.13	4.68	7.15%	-92.46%
MID-CAP
APPN	2.9B	489.0M	29.77%	-12.47%	-19.47	6.28	23.89%	-67.60%
MANH	11.5B	809.1M	10.70%	44.19%	83.87	14.22	17.99%	15.82%
GWRE	5.8B	869.9M	-5.88%	-13.84%	-34.83	6.69	13.87%	-28.82%
PING	2.4B	-	1.17%	7.67%	-23.16	7.93	-	-
SMALL-CAP
ZUO	1.1B	406.0M	54.95%	11.41%	-5.73	2.87	12.90%	-84.97%
YEXT	1.1B	400.9M	13.64%	73.55%	-17.16	2.82	2.63%	29.30%
UPLD	106.4M	315.6M	-9.14%	-77.09%	-0.57	0.34	2.89%	-207.54%

Financials for Open Text

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Revenue	10.3%	3,897	3,534	3,514	3,494	3,485
Gross Profit	10.8%	2,738	2,471	2,451	2,432	2,420
Operating Expenses	17.9%	2,206	1,871	1,843	1,787	1,741
S&GA Expenses	12.7%	801	711	698	677	674
EBITDA	190.6%	279	96.00	358	443	-
EBITDA Margin	188.9%	0.08*	0.03*	0.10*	0.13*	-
Earnings Before Taxes	-16.1%	368	439	257	516	598
EBT Margin	69.6%	0.12*	0.07*	0.15*	0.17*	-
Interest Expenses	0.9%	-159	-161	-157	-155	-
Net Income	-5.4%	301	318	148	397	476
Net Income Margin	113.5%	0.09*	0.04*	0.11*	0.14*	-
Free Cahsflow	-2.3%	903	924	982	1,026	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Assets	55.4%	17,428	11,218	10,077	10,179	10,163
Current Assets	-29.7%	2,433	3,459	2,244	2,285	2,232
Cash Equivalents	-50.4%	1,400	2,821	1,704	1,694	1,634
Net PPE	35.9%	341	251	251	245	228
Goodwill	66.6%	8,749	5,250	5,227	5,245	5,265
Current Liabilities	133.1%	3,484	1,494	1,578	1,468	1,418
Long Term Debt	0.0%	4,220	4,221	-	-	-
LT Debt, Current	4858.5%	496	10.00	10.00	10.00	10.00
LT Debt, Non Current	64.9%	8,565	5,193	4,209	4,210	4,211
Shareholder's Equity	0.1%	4,123	4,120	3,850	4,031	4,055
Retained Earnings	-0.4%	2,163	2,171	1,978	2,160	2,151
Shares Outstanding	0.1%	270	270	270	270	270
Minority Interest	4.7%	1.00	1.00	1.00	1.00	1.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q1	2022Q4	2022Q3	2022Q2	2022Q1
Cashflow From Operations	1.5%	916	903	924	982	1,026
Share Based Compensation	21.0%	113	93.00	79.00	70.00	58.00
Cashflow From Investing	-3825.7%	-5,663	-144	-980	-970	-963
Cashflow From Financing	670.9%	4,535	588	107	138	124
Dividend Payments	2.3%	254	248	243	238	233
Buy Backs	-52.5%	82.00	172	177	340	-

Risks for OTEX

What is the probability of a big loss on OTEX?

55.4%

Probability that Open Text stock will be more than 20% underwater in next one year

40%

Probability that Open Text stock will be more than 30% underwater in next one year.

11.2%

Probability that Open Text stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does OTEX drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Open Text was unfortunately bought at previous high price.

Drawdowns

Returns for OTEX

Cumulative Returns on OTEX

10.6%

10-Year Cumulative Returns

6.4%

7-Year Cumulative Returns

5.0%

5-Year Cumulative Returns

0.4%

3-Year Cumulative Returns

What are the long-term rolling returns for OTEX?

FIve years rolling returns for Open Text.

Annualized Returns

Which funds bought or sold OTEX recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-05-23	ROYCE & ASSOCIATES LP	unchanged	-	3,800,920	16,396,900	0.16%
2023-05-22	AMERIPRISE FINANCIAL INC	reduced	-0.06	141,951	381,951	-%
2023-05-18	JPMORGAN CHASE & CO	reduced	-18.03	2,314,930	37,289,900	-%
2023-05-17	Advisory Services Network, LLC	reduced	-95.84	-22,937	1,309	-%
2023-05-16	MidWestOne Financial Group, Inc.	reduced	-33.81	-186,241	1,152,570	0.26%
2023-05-16	Rockefeller Capital Management L.P.	sold off	-100	-20,000	-	-%
2023-05-16	SIG North Trading, ULC	added	5.3	260,332	959,895	0.04%
2023-05-16	KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	new	-	231	231	-%
2023-05-16	Baker Avenue Asset Management, LP	new	-	925	925	-%
2023-05-16	JANE STREET GROUP, LLC	added	985	14,525,600	15,632,700	0.01%

Latest Funds Activity

Are funds buying OTEX calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own OTEX

No. of Funds

OTEX Alerts

Big jump in Revenue (Y/Y)

Open Text News

Schedule 13G FIlings of Open Text

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	harris associates l p	5.6%	15,205,007	SC 13G
Feb 13, 2023	jarislowsky, fraser ltd	6.15%	16,631,315	SC 13G
Feb 09, 2023	fmr llc	-	0	SC 13G
Feb 03, 2023	blackrock inc.	5.1%	13,827,903	SC 13G
Jul 08, 2022	blackrock inc.	4.9%	13,187,981	SC 13G
Feb 14, 2022	jarislowsky, fraser ltd	6.31%	17,133,524	SC 13G
Feb 01, 2022	blackrock inc.	5.5%	14,902,807	SC 13G/A
Feb 16, 2021	jarislowsky, fraser ltd	6.18%	16,831,580	SC 13G
Feb 12, 2021	caisse de depot et placement du quebec	4.4%	1.2e+07	SC 13G/A
Feb 02, 2021	blackrock inc.	6.3%	17,097,959	SC 13G

OTEX Fair Value

Show Fair-Value

Recent SEC filings of Open Text

View All Filings

Date Filed	Form Type	Document
May 09, 2023	144	Notice of Insider Sale Intent
May 04, 2023	8-K	Current Report
May 04, 2023	10-Q	Quarterly Report
Apr 10, 2023	8-K/A	Current Report

About Open Text

Mark J. Barrenechea

www.opentext.com

14300

Open Text Corporation engages in the designs, develops, markets, and sells information management software and solutions. It offers content services; business network that manages data within the organization and outside the firewall; security and protection solutions for defending against cyber threats, and preparing for business continuity and response in the event of a breach; digital investigation and forensic security solutions; OpenText security solutions to address information cyber resilience needs; Carbonite and Webroot products; and OpenText Information Management software platform. The company also provides Discovery platform that provides forensics and unstructured data analytics; OpenText Developer Cloud; key developer API services; AI and analytics that leverages structured or unstructured data; digital process automation solutions, which enables organizations to transform into digital data-driven businesses; and OpenText Digital Experience platform. In addition, it offers customer support programs, including access to software upgrades, a knowledge base, discussions, product information, and an online mechanism to post and review trouble tickets; and consulting and learning services relating to the implementation, training, and integration of its licensed product offerings, as well as cloud services. The company serves organizations, enterprise and mid-market companies, public sector agencies, small and medium-sized businesses, and direct consumers in Canada, the United States, the United Kingdom, Germany, rest of Europe, the Middle East, Africa, and internationally. It has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, Accenture plc, ATOS, Capgemini Technology Services SAS, Cognizant Technology Solutions U.S. Corp., Deloitte Consulting LLP, and Tata Consultancy Services. The company was incorporated in 1991 and is headquartered in Waterloo, Canada.

OTEX Income Statement

2023-03-31

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenues (Note 3):
Total revenues	$ 1,244,674	$ 882,283	$ 2,994,150	$ 2,591,390
Cost of revenues:
Amortization of acquired technology-based intangible assets (Note 8)	62,639	46,564	146,139	152,333
Total cost of revenues	369,730	274,236	889,771	793,540
Gross profit	874,944	608,047	2,104,379	1,797,850
Operating expenses:
Research and development	210,731	117,730	430,629	321,517
Sales and marketing	271,013	180,955	615,354	491,133
General and administrative	127,047	88,137	282,724	231,127
Depreciation	30,577	22,370	76,609	65,535
Amortization of acquired customer-based intangible assets (Note 8)	97,237	56,215	205,121	160,764
Special charges (recoveries) (Note 18)	74,350	11,031	98,937	20,592
Total operating expenses	810,955	476,438	1,709,374	1,290,668
Income from operations	63,989	131,609	395,005	507,182
Other income (expense), net (Note 22)	85,706	24,392	59,824	29,137
Interest and other related expense, net	(104,502)	(40,238)	(183,599)	(117,538)
Income before income taxes	45,193	115,763	271,230	418,781
Provision for (recovery of) income taxes (Note 15)	(12,420)	41,041	71,979	123,757
Net income for the period	57,613	74,722	199,251	295,024
Net (income) loss attributable to non-controlling interests	(57)	(41)	(138)	(130)
Net income attributable to OpenText	$ 57,556	$ 74,681	$ 199,113	$ 294,894
Earnings per share—basic attributable to OpenText (note 23) (in dollars per share)	$ 0.21	$ 0.28	$ 0.74	$ 1.09
Earnings per share—diluted attributable to OpenText (note 23) (in dollars per share)	$ 0.21	$ 0.28	$ 0.74	$ 1.08
Weighted average number of Common Shares outstanding—basic (in '000's) (in shares)	270,441	270,693	270,143	271,623
Weighted average number of Common Shares outstanding—diluted (in '000's) (in shares)	270,650	271,211	270,173	272,439
Cloud services and subscriptions
Revenues (Note 3):
Total revenues	$ 435,449	$ 401,947	$ 1,248,774	$ 1,123,422
Cost of revenues:
Costs of revenues	157,658	136,020	423,771	377,928
Customer support
Revenues (Note 3):
Total revenues	575,884	332,514	1,209,743	1,002,626
Cost of revenues:
Costs of revenues	67,067	31,763	123,010	90,914
License
Revenues (Note 3):
Total revenues	139,722	80,641	310,230	263,663
Cost of revenues:
Costs of revenues	3,840	3,196	10,461	10,906
Professional service and other
Revenues (Note 3):
Total revenues	93,619	67,181	225,403	201,679
Cost of revenues:
Costs of revenues	$ 78,526	$ 56,693	$ 186,390	$ 161,459

OTEX Balance Sheet

2023-03-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
ASSETS
Cash and cash equivalents	$ 1,396,817	$ 1,693,741
Accounts receivable trade, net of allowance for credit losses of $16,550 as of March 31, 2023 and $16,473 as of June 30, 2022 (Note 4)	676,280	426,652
Contract assets (Note 3)	61,374	26,167
Income taxes recoverable (Note 15)	47,803	18,255
Prepaid expenses and other current assets (Note 9)	250,661	120,552
Total current assets	2,432,935	2,285,367
Property and equipment (Note 5)	340,615	244,709
Operating lease right of use assets (Note 6)	297,640	198,132
Long-term contract assets (Note 3)	63,380	19,719
Goodwill (Note 7)	8,748,543	5,244,653
Acquired intangible assets (Note 8)	4,221,885	1,075,208
Deferred tax assets (Note 15)	889,143	810,154
Other assets (Note 9)	343,677	256,987
Long-term income taxes recoverable (Note 15)	89,730	44,044
Total assets	17,427,548	10,178,973
Current liabilities:
Accounts payable and accrued liabilities (Note 10)	910,713	448,607
Current portion of long-term debt (Note 11)	495,850	10,000
Operating lease liabilities (Note 6)	94,015	56,380
Deferred revenues (Note 3)	1,785,121	902,202
Income taxes payable (Note 15)	198,371	51,069
Total current liabilities	3,484,070	1,468,258
Long-term liabilities:
Accrued liabilities (Note 10)	64,120	18,208
Pension liability (Note 12)	112,168	60,951
Long-term debt (Note 11)	8,565,238	4,209,567
Long-term operating lease liabilities (Note 6)	286,025	198,695
Long-term deferred revenues (Note 3)	240,357	91,144
Long-term income taxes payable (Note 15)	189,351	34,003
Deferred tax liabilities (Note 15)	363,072	65,887
Total long-term liabilities	9,820,331	4,678,455
Shareholders’ equity:
Common shares	2,130,343	2,038,674
Accumulated other comprehensive income (loss) (Note 20)	(33,114)	(7,659)
Retained earnings	2,163,338	2,160,069
Treasury stock, at cost (3,216,394 and 3,706,420 shares at March 31, 2023 and June 30, 2022, respectively)	(138,700)	(159,966)
Total OpenText shareholders' equity	4,121,867	4,031,118
Non-controlling interests	1,280	1,142
Total shareholders’ equity	4,123,147	4,032,260
Total liabilities and shareholders’ equity	$ 17,427,548	$ 10,178,973