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Upturn AI SWOT - About
OTEX 
Open Text Corp (OTEX)
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Upturn Advisory Summary
08/14/2025: OTEX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
12 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $34.3
1 Year Target Price $34.3
| 1 | Strong Buy |
| 2 | Buy |
| 9 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -20.1% | Avg. Invested days 41 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.09B USD | Price to earnings Ratio 19.21 | 1Y Target Price 34.3 |
Price to earnings Ratio 19.21 | 1Y Target Price 34.3 | ||
Volume (30-day avg) 12 | Beta 1.13 | 52 Weeks Range 22.58 - 33.25 | Updated Date 08/15/2025 |
52 Weeks Range 22.58 - 33.25 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 3.38% | 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 2025-07-30 | When Before Market | Estimate 0.8877 | Actual 0.97 |
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 19.21 | Forward PE 7.54 | Enterprise Value 13414211991 | Price to Sales(TTM) 1.57 |
Enterprise Value 13414211991 | Price to Sales(TTM) 1.57 | ||
Enterprise Value to Revenue 2.6 | Enterprise Value to EBITDA 8.94 | Shares Outstanding 254316992 | Shares Floating 249131173 |
Shares Outstanding 254316992 | Shares Floating 249131173 | ||
Percent Insiders 2.08 | Percent Institutions 81.08 |
Upturn AI SWOT
Open Text Corp
Company Overview
History and Background
Open Text Corp, founded in 1991, initially focused on developing and marketing search engine technology. It evolved into a leading provider of Enterprise Information Management (EIM) software and solutions through organic growth and strategic acquisitions.
Core Business Areas
- Digital Workspace: Provides solutions for content collaboration, secure file sharing, and digital asset management.
- Content Cloud: Offers solutions for managing and governing enterprise content across various sources and formats.
- Cybersecurity: Offers cybersecurity software and services to protect organizations from evolving threats.
- Business Network: Facilitates secure and efficient data exchange and collaboration within supply chains.
- Application Modernization & Connectivity: Enables organizations to modernize their applications and connect them to other systems and applications.
Leadership and Structure
Mark J. Barrenechea serves as CEO & CTO. The company has a typical corporate structure with functional departments such as sales, marketing, R&D, and finance.
Top Products and Market Share
Key Offerings
- OpenText Content Cloud: A suite of content management solutions for ECM, BPM, and Records Management. Competitors include Microsoft, IBM, and Hyland. Market share data is variable but OpenText holds a significant position in the ECM market.
- OpenText Cybersecurity: Provides solutions to protect information and prevent cyber attacks. Competitors include CrowdStrike, Palo Alto Networks, and Fortinet. The cybersecurity market is very fragmented and OpenText holds a small market share.
- OpenText Business Network: Facilitates secure and efficient data exchange and collaboration within supply chains. Competitors include SAP Ariba and Coupa.
Market Dynamics
Industry Overview
The Enterprise Information Management (EIM) industry is experiencing growth driven by the increasing volume of data, the need for compliance, and the adoption of cloud technologies. The cybersecurity sector is robust because of the proliferation of sophisticated attacks.
Positioning
Open Text Corp is positioned as a leader in the EIM market, offering a comprehensive suite of solutions for managing and leveraging enterprise information. They have a strong installed base and a history of successful acquisitions.
Total Addressable Market (TAM)
The total addressable market is estimated to be in the hundreds of billions of USD, spanning across EIM, Cybersecurity, and B2B integration. Open Text is positioned to capture a significant portion of this TAM through its diverse product portfolio and market presence.
Upturn SWOT Analysis
Strengths
- Strong product portfolio
- Established customer base
- Successful acquisition strategy
- Experienced management team
- Global presence
Weaknesses
- High debt level
- Integration challenges from acquisitions
- Complexity of product suite
- Customer Support is often slow
- Competition from larger software companies
Opportunities
- Growth in cloud-based solutions
- Increasing demand for cybersecurity
- Expansion into emerging markets
- Adoption of AI and automation in EIM
- Cross-selling opportunities within existing customer base
Threats
- Intense competition
- Rapid technological changes
- Economic downturn
- Cybersecurity threats
- Changing customer preferences
Competitors and Market Share
Key Competitors
- MSFT
- IBM
- ADBE
- CRM
- SAP
Competitive Landscape
Open Text faces intense competition from larger, well-established software companies. Its advantages include a comprehensive product portfolio and a strong customer base. Disadvantages include a more complex product suite and integration challenges from acquisitions.
Major Acquisitions
Micro Focus
- Year: 2023
- Acquisition Price (USD millions): 5800
- Strategic Rationale: Expanded OpenText's portfolio with cybersecurity, application modernization, and IT operations management solutions.
Zix Corporation
- Year: 2021
- Acquisition Price (USD millions): 860
- Strategic Rationale: The acquisition of Zix, a leading provider of email security solutions, is strategic for OpenText as it enhances its cybersecurity portfolio and strengthens its position in the growing market.
Growth Trajectory and Initiatives
Historical Growth: Open Text Corp has grown significantly through acquisitions and organic growth in the EIM market.
Future Projections: Future projections are positive, with analysts expecting continued growth driven by cloud adoption and cybersecurity demand. Numbers cannot be provided as of knowledge cut-off in 2023.
Recent Initiatives: Recent strategic initiatives include expanding its cloud offerings, investing in AI, and focusing on customer success.
Summary
Open Text Corp is a significant player in the EIM market, leveraging acquisitions and organic growth to expand its product offerings. Its strength lies in a diverse product portfolio and a global presence. High debt and integration of new acquisitions are the areas that Open Text needs to focus on. Intense competition from large corporations is a constant threat, but Open Text has multiple opportunities for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Analyst Reports
- Industry Publications
- Press Releases
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions and company performance can change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.opentext.com |
Full time employees 21400 | Website https://www.opentext.com | ||
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.
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