How to buy Open Text (OTEX) stocks

Open Text is a software - application business based in Canada. Open Text shares (OTEX) are listed on the Toronto Stock Exchange (TSX) and all prices are listed in Canadian Dollars.

Its last market close was C$39.62 – a decrease of 5.67% over the previous week. Open Text employs 21,800 staff and has a trailing 12-month revenue of around C$5.6 billion.

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Open Text stock price (Toronto Stock Exchange (TSX): OTEX)

Use our graph to track the performance of OTEX stocks over time.

Open Text stocks at a glance

• Key figures

Information last updated 2024-12-19.

Latest market close	C$39.62
52-week range	C$37.69 - C$58.97
50-day moving average more info button	C$43.28
200-day moving average more info button	C$44.22
Wall St. target price	C$48.17
PE ratio more info button	15.9516
Dividend yield more info button	C$1.013 (3.72%)
Earnings per share (TTM) more info button	C$2.48

Is it a good time to buy Open Text stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Dive deeper: Our picks for the best stocks to buy right now in Canada

Open Text price performance over time

Historical closes compared with the close of C$39.44 from 2024-12-19

1 week (2024-12-13)	-6.10%
1 month (2024-11-21)	-3.29%
3 months (2024-09-20)	-11.27%
6 months (2024-06-21)	-2.93%

1 year (2023-12-21)	-29.51%
2 years (2022-12-21)	2.52%
3 years (2021-12-21)	56.9547
5 years (2019-12-20)	54.0187

Is Open Text stock undervalued or overvalued?

Valuing Open Text stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Open Text's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Open Text's P/E ratio

Open Text's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 16x. In other words, Open Text shares trade at around 16x recent earnings.

Open Text's PEG ratio

Open Text's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.15. A low ratio can be interpreted as meaning the stocks offer better value, while a higher ratio can be interpreted as meaning the stocks offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Open Text's future profitability. By accounting for growth, it could also help you if you're comparing the stock prices of multiple high-growth companies.

Open Text's EBITDA

Open Text's EBITDA (earnings before interest, taxes, depreciation and amortisation) is C$1.6 billion.

The EBITDA is a measure of a Open Text's overall financial performance and is widely used to measure a its profitability.

Open Text financials

Revenue TTM	C$5.6 billion
Operating margin TTM	19.92%
Gross profit TTM	C$3.4 billion
Return on assets TTM	4.27%
Return on equity TTM	11.5%
Profit margin	8.35%
Book value	C$15.81
Market Capitalization more info button	C$10.5 billion
EBITDA more info button	C$1.6 billion

TTM: trailing 12 months

Open Text stock dividends

Dividend payout ratio: 18.64% of net profits

Recently Open Text has paid out, on average, around 0% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Open Text shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Open Text's case, that would currently equate to about C$1.013 per share.

While Open Text's payout ratio might seem low, this can signify that Open Text is investing more in its future growth.

Open Text's most recent dividend payout was on 19 December 2024. The latest dividend was paid out to all shareholders who bought their stocks by 28 November 2024 (the "ex-dividend date").

Have Open Text's stocks ever split?

Open Text's stocks were split on a 2:1 basis on 24 January 2017 . So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Open Text stocks – just the quantity. However, indirectly, the new 50% lower stock price could have impacted the market appetite for Open Text stocks, which in turn could have impacted Open Text's stock price.

Open Text stock price volatility

Over the last 12 months, Open Text's stocks have ranged in value from as little as C$37.6885 up to C$58.9737. A popular way to gauge a stock's volatility is its "beta."

Beta is a measure of a stocks volatility in relation to the market. The market (TO average) beta is 1, while Open Text's is 1.135. This would suggest that Open Text's stocks are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Open Text overview

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.

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Frequently asked questions

What percentage of Open Text is owned by insiders or institutions?
Currently 2.097% of Open Text stocks are held by insiders and 78.073% by institutions. How many people work for Open Text?
Latest data suggests 21,800 work at Open Text. When does the fiscal year end for Open Text?
Open Text's fiscal year ends in June. Where is Open Text based?
Open Text's address is: 275 Frank Tompa Drive, Waterloo, ON, Canada, N2L 0A1 What is Open Text's ISIN number?
Open Text's international securities identification number is: CA6837151068

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