Open Text Corp
OTEX
Services-Computer Integrated Systems Design
Mkt Cap
$8.109BPE
48.23Debt
$8.576BCash
$1.127BEV
$15.56BFCF
$754.4MP/E Ratio
48.23Debt
$8.576BCash
$1.127BEV
$15.56BFCF
$754.4MCharts data: {"Earnings":[{"time":"2014-06-29","value":218074000},{"time":"2015-06-29","value":234327000},{"time":"2016-06-29","value":284477000},{"time":"2017-06-29","value":1025659000},{"time":"2018-06-29","value":242224000},{"time":"2019-06-29","value":285501000},{"time":"2020-06-29","value":234225000},{"time":"2021-06-29","value":310672000},{"time":"2022-06-29","value":397090000},{"time":"2023-06-29","value":150379000}],"Sales":[{"time":"2014-06-29","value":1624699000},{"time":"2015-06-29","value":1851917000},{"time":"2016-06-29","value":1824228000},{"time":"2017-06-29","value":2291057000},{"time":"2018-06-29","value":2815241000},{"time":"2019-06-29","value":2868755000},{"time":"2020-06-29","value":3109736000},{"time":"2021-06-29","value":3386115000},{"time":"2022-06-29","value":3493844000},{"time":"2023-06-29","value":4484980000}],"Net Margins":[{"time":"2014-06-29","value":0.1342242470759199},{"time":"2015-06-29","value":0.12653212859971585},{"time":"2016-06-29","value":0.15594377457203815},{"time":"2017-06-29","value":0.44767938990605644},{"time":"2018-06-29","value":0.0860402359869013},{"time":"2019-06-29","value":0.09952087229477595},{"time":"2020-06-29","value":0.07531989853801094},{"time":"2021-06-29","value":0.09174880356987285},{"time":"2022-06-29","value":0.11365418719324617},{"time":"2023-06-29","value":0.03352946947366543}],"Assets":[{"time":"2014-06-29","value":3918638000},{"time":"2015-06-29","value":4388495000},{"time":"2016-06-29","value":5154144000},{"time":"2017-06-29","value":7480562000},{"time":"2018-06-29","value":7765029000},{"time":"2019-06-29","value":7933975000},{"time":"2020-06-29","value":10234822000},{"time":"2021-06-29","value":9609336000},{"time":"2022-06-29","value":10178973000},{"time":"2023-06-29","value":17089200000}],"Stockholders Equity":[{"time":"2014-06-29","value":1642167000},{"time":"2015-06-29","value":1829807000},{"time":"2016-06-29","value":1979197000},{"time":"2017-06-29","value":3533319000},{"time":"2018-06-29","value":3717258000},{"time":"2019-06-29","value":3884670000},{"time":"2020-06-29","value":4006709000},{"time":"2021-06-29","value":4099453000},{"time":"2022-06-29","value":4032260000},{"time":"2023-06-29","value":4022104000}],"ROE":[{"time":"2014-06-29","value":0.1327964817220173},{"time":"2015-06-29","value":0.12806104687543549},{"time":"2016-06-29","value":0.14373354446272907},{"time":"2017-06-29","value":0.29028202661576835},{"time":"2018-06-29","value":0.06516200920140598},{"time":"2019-06-29","value":0.07349427364486559},{"time":"2020-06-29","value":0.058458200982402266},{"time":"2021-06-29","value":0.07578376920042747},{"time":"2022-06-29","value":0.09847827273042908},{"time":"2023-06-29","value":0.03738814312111273}],"ROA":[{"time":"2014-06-29","value":0.0766919526631447},{"time":"2015-06-29","value":0.07946027054833149},{"time":"2016-06-29","value":0.07150809135328776},{"time":"2017-06-29","value":0.04717987766159815},{"time":"2018-06-29","value":0.06508707179329272},{"time":"2019-06-29","value":0.0714660683957285},{"time":"2020-06-29","value":0.04919763138039919},{"time":"2021-06-29","value":0.0771024137359751},{"time":"2022-06-29","value":0.06334362022573398},{"time":"2023-06-29","value":0.030211595627647872}]}
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 eDiscovery 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. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.
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DCF
Discounted Cash Flow Valuation of Open Text Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $754.4M | $824.4M | $897.1M | $971.8M | $1.048B | $1.126B | $1.203B | $1.281B | $1.357B | $1.431B | $1.503B | $15.03B |
| DCF | $716.9M | $678.3M | $639M | $599.3M | $559.6M | $520.2M | $481.4M | $443.5M | $406.8M | $371.4M | $3.714B | |
| Value | $9.131B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -6.2%
Earnings Stability 8.1%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 13% | 16% | 45% | 8.6% | 10% | 7.5% | 9.2% | 11% | 3.4% | 2.9% |
| ROA | 7.9% | 7.2% | 4.7% | 6.5% | 7.1% | 4.9% | 7.7% | 6.3% | 3% | 5% |
| ROE | 13% | 14% | 29% | 6.5% | 7.3% | 5.8% | 7.6% | 9.8% | 3.7% | 4.1% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.33%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.58%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +5.94%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.49%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +6.81%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.13%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 4.70 | 6.52 | 9.98 | 5.85 | 4.21 | 5.99 | 4.46 | 4.80 | 14.36 | 11.37 |
| Debt Equity | 1.15 | 1.50 | 1.02 | 0.95 | 0.88 | 1.32 | 0.88 | 1.06 | 2.34 | 2.08 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 47% | 55% | 45% | 100% | 100% | 48% | 45% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 11.37.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.22.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.45.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 14% | 9.8% | 13% | 28% | 0.39% |
| Net Income | -8.7% | -9.1% | -14% | -62% | -11% |
| Stockholders Equity | 11% | 1.6% | 0.13% | -0.25% | -3.8% |
| FCF | 5.3% | 1.6% | -9.4% | -26% | -3.2% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +9.76%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.39%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -9.09%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -10.94%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +1.59%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -3.84%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +1.63%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -3.21%.