OTEX:CA:TSX-Open Text Corp (CAD)

COMMON STOCK | Software - Application |

Last Closing

CAD 45.14

Change

+0.41 (+0.92)%

Market Cap

CAD 11.92B

Volume

1.14M

Analyst Target

CAD 43.91
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

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.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2024-09-24 )

Largest Industry Peers for Software - Application

Symbol Name Price(Change) Market Cap
SHOP:CA Shopify Inc

-0.27 (-0.25%)

CAD 132.26B
CSU:CA Constellation Software Inc.

+10.00 (+0.23%)

CAD 93.24B
DSG:CA Descartes Systems Group Inc

-2.08 (-1.49%)

CAD 11.78B
KXS:CA Kinaxis Inc

-5.25 (-3.29%)

CAD 4.63B
LSPD:CA Lightspeed Commerce Inc

+0.21 (+1.14%)

CAD 2.84B
DCBO:CA Docebo Inc

-0.66 (-1.08%)

CAD 1.85B
ENGH:CA Enghouse Systems Ltd

N/A

CAD 1.84B
DND:CA Dye & Durham Ltd

+0.31 (+1.96%)

CAD 1.06B
CMG:CA Computer Modelling Group Ltd.

+0.18 (+1.58%)

CAD 0.95B
DTOL:CA D2L Inc

+0.06 (+0.46%)

CAD 0.71B

ETFs Containing OTEX:CA

N/A

Market Performance

  Market Performance vs. Industry/Classification (Software - Application) Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -18.94% 20% F 7% C-
Dividend Return 1.06% 83% B 32% F
Total Return -17.89% 20% F 7% C-
Trailing 12 Months  
Capital Gain -3.63% 20% F 14% F
Dividend Return 1.99% 86% B+ 37% F
Total Return -1.64% 25% F 15% F
Trailing 5 Years  
Capital Gain -16.85% 33% F 18% F
Dividend Return 8.76% 67% D+ 41% F
Total Return -8.09% 33% F 20% F
Average Annual (5 Year Horizon)  
Capital Gain -2.44% 30% F 22% F
Dividend Return -0.53% 35% F 23% F
Total Return 1.91% 71% C- 54% F
Risk Return Profile  
Volatility (Standard Deviation) 21.88% 85% B 40% F
Risk Adjusted Return -2.43% 35% F 25% F
Market Capitalization 11.92B 89% A- 90% A-

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.