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Open Text Corp (OTEX)

Upturn stock ratingUpturn stock rating
$39.3
Last Close (24-hour delay)
Profit since last BUY45.99%
upturn advisory
Consider higher Upturn Star rating
BUY since 109 days
  • BUY Advisory
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  • SELL Advisory (Loss)​
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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Time period over
  • ALL
  • YEAR
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Upturn Advisory Summary

10/13/2025: OTEX (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

12 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $37.66

1 Year Target Price $37.66

Analysts Price Target For last 52 week
$37.66 Target price
52w Low $22.39
Current$39.3
52w High $39.84

Analysis of Past Performance

Type Stock
Historic Profit 1.99%
Avg. Invested days 47
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 10/13/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 9.99B USD
Price to earnings Ratio 23.82
1Y Target Price 37.66
Price to earnings Ratio 23.82
1Y Target Price 37.66
Volume (30-day avg) 12
Beta 1.18
52 Weeks Range 22.39 - 39.84
Updated Date 10/13/2025
52 Weeks Range 22.39 - 39.84
Updated Date 10/13/2025
Dividends yield (FY) 2.72%
Basic EPS (TTM) 1.65

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 8.43%
Operating Margin (TTM) 19.66%

Management Effectiveness

Return on Assets (TTM) 4.58%
Return on Equity (TTM) 10.73%

Valuation

Trailing PE 23.82
Forward PE 9.12
Enterprise Value 15079270342
Price to Sales(TTM) 1.93
Enterprise Value 15079270342
Price to Sales(TTM) 1.93
Enterprise Value to Revenue 2.92
Enterprise Value to EBITDA 10.05
Shares Outstanding 254316690
Shares Floating 245421790
Shares Outstanding 254316690
Shares Floating 245421790
Percent Insiders 2.08
Percent Institutions 81.25

ai summary icon Upturn AI SWOT

Open Text Corp

stock logo

Company Overview

overview logo History and Background

Open Text Corp was founded in 1991 as a spin-off from a project at the University of Waterloo in Canada. Initially focused on search technology, it evolved into a leading provider of Enterprise Information Management (EIM) software and solutions through organic growth and strategic acquisitions.

business area logo Core Business Areas

  • Digital Experience: Provides solutions for creating, managing, and delivering personalized customer experiences across multiple channels.
  • Information Management: Offers solutions for capturing, governing, and accessing unstructured information across the enterprise.
  • Cybersecurity: Delivers cybersecurity solutions to protect organizations from internal and external threats.
  • Business Network: Facilitates secure and efficient exchange of information and documents between businesses.

leadership logo Leadership and Structure

Mark J. Barrenechea is the current CEO & CTO. Open Text operates with a global organizational structure, including engineering, sales, marketing, and services departments.

Top Products and Market Share

overview logo Key Offerings

  • Content Suite Platform: A comprehensive EIM platform for managing content across the enterprise. Competitors include Microsoft SharePoint (MSFT), IBM FileNet (IBM), and Hyland OnBase. Hard to find market share. Revenue for Open Text is about $3.5 billion.
  • Exstream: A customer communication management (CCM) solution for creating and delivering personalized documents and communications. Competitors include Quadient (QDT.PA) and Messagepoint. Hard to find market share. Revenue for Open Text is about $3.5 billion.
  • Carbonite: A cloud-based data backup and recovery solution for consumers and small businesses. Competitors include Backblaze (BLZE) and IDrive. Hard to find market share. Revenue for Open Text is about $3.5 billion.

Market Dynamics

industry overview logo Industry Overview

The Enterprise Information Management (EIM) market is growing, driven by the increasing volume of data and the need for organizations to manage and secure their information assets. The cybersecurity market is also growing rapidly, due to the increasing frequency and sophistication of cyberattacks.

Positioning

Open Text Corp is a leading vendor in the EIM and cybersecurity markets, with a broad portfolio of solutions and a large customer base. Its competitive advantages include its comprehensive product offering, its global reach, and its strong brand reputation.

Total Addressable Market (TAM)

The TAM for EIM and cybersecurity solutions is estimated to be over $100 billion. Open Text Corp is positioned to capture a significant share of this market through its organic growth and acquisitions.

Upturn SWOT Analysis

Strengths

  • Comprehensive product portfolio
  • Large customer base
  • Strong brand reputation
  • Extensive partner ecosystem
  • Recurring revenue model

Weaknesses

  • High debt levels due to acquisitions
  • Complex organizational structure
  • Integration challenges with acquired companies
  • Slow organic growth
  • Customer service concerns

Opportunities

  • Growing demand for EIM and cybersecurity solutions
  • Expansion into new markets and verticals
  • Development of new cloud-based solutions
  • Acquisition of complementary technologies
  • Leveraging artificial intelligence and machine learning

Threats

  • Intense competition from larger vendors
  • Rapid technological changes
  • Economic slowdown
  • Data privacy regulations
  • Cybersecurity breaches

Competitors and Market Share

competitor logo Key Competitors

  • MSFT
  • ORCL
  • IBM
  • SAP

Competitive Landscape

Open Text Corp competes with a range of vendors, from large established players to smaller niche providers. Its advantages include its comprehensive product portfolio and its strong brand reputation. Its disadvantages include its high debt levels and its complex organizational structure.

Major Acquisitions

Micro Focus

  • Year: 2023
  • Acquisition Price (USD millions): 5800
  • Strategic Rationale: Expanded Open Text's product portfolio and customer base in the areas of application modernization and management.

Zix

  • Year: 2021
  • Acquisition Price (USD millions): 860
  • Strategic Rationale: Expanded Open Text's presence in the SMB market and added cybersecurity capabilities.

Growth Trajectory and Initiatives

Historical Growth: Open Text Corp has grown significantly through acquisitions, with moderate organic growth.

Future Projections: Analysts expect Open Text Corp to continue growing through acquisitions and organic growth, with revenue growth in the mid-single digits.

Recent Initiatives: Recent initiatives include acquisitions of Micro Focus, and focus on cloud-based solutions.

Summary

Open Text is a major player in information management and cybersecurity with strengths in their comprehensive product suite and customer base. The company faces challenges from high debt and integration complexities stemming from acquisitions. Their future growth depends on capitalizing on cloud solutions and managing competitive pressures. Overall, Open Text shows promise, but its success relies heavily on strategic execution.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company SEC Filings (10-K, 10-Q)
  • Company Investor Relations
  • Analyst Reports
  • Industry Reports
  • Open Text Corp Website

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is approximate and may vary depending on the source. Financial data is based on the most recent available information and is subject to change.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Open Text Corp

Exchange NASDAQ
Headquaters Waterloo, ON, Canada
IPO Launch date 1998-09-09
CEO -
Sector Technology
Industry Software - Application
Full time employees 21400
Full time employees 21400

Open Text Corporation designs, develops, markets, and sells information management software and solutions in North, Central, and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China. The company offers cloud services and subscriptions, including software as a service offerings, application programming interfaces and data services, and private, public, and off-cloud products, such as hosted services and managed service arrangements; foundational platform of technology services; and packaged business applications, as well as managed services and outsourced B2B integration solutions, including program implementation, operational management, and customer support. It also provides fees earned from the licensing of software products to customers; and consulting and learning services, such as implementation, training, and integration of licensed product offerings into the customer's systems. In addition, the company offers various business clouds, including content, cybersecurity, DevOps, business network, observability and service management, and analytics; and artificial intelligence, software developers API, and other related services. It has strategic partnerships with SAP SE, Google Cloud, Amazon Web Services, Microsoft Corporation, Oracle Corporation, and Salesforce.com Corporation, as well as global systems integrators, including Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. The company serves G10K organizations, enterprise companies, public sector agencies, mid-market companies, small and medium-sized businesses, and direct consumers. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.