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How to buy Open Text stock
Learn how to easily invest in Open Text stock.
Open Text Corp is a software-application business based in the US. Open Text shares (OTEX) are listed on the NASDAQ and all prices are listed in US Dollars. Open Text employs 14,800 staff and has a trailing 12-month revenue of around $3.5 billion.
How to buy shares in Open Text
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – OTEX – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
What's in this guide?
- OTEX shares summary
- Compare share dealing platforms
- Is OTEX stock a buy or sell?
- Stock performance over time
- Is OTEX suitable for ethical investing?
- Are OTEX shares over-valued?
- Open Text's financials
- How volatile are OTEX shares?
- Does Open Text pay a dividend?
- Have OTEX shares ever split?
- Other common questions
Open Text stock price (NASDAQ: OTEX)Use our graph to track the performance of OTEX stocks over time.
Open Text shares at a glance
|Latest market close||$26.44|
|52-week range||$26.77 - $51.50|
|50-day moving average||$35.33|
|200-day moving average||$40.58|
|Wall St. target price||$75.04|
|Dividend yield||$0.884 (3.59%)|
|Earnings per share (TTM)||$1.46|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
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.
Open Text price performance over time
|1 week (2022-09-22)||-3.61%|
|1 month (2022-08-28)||N/A|
|3 months (2022-06-30)||-30.13%|
|6 months (2022-03-31)||-37.64%|
|1 year (2021-10-01)||-46.13%|
|2 years (2020-10-01)||-38.11%|
|3 years (2019-10-01)||40.38|
|5 years (2017-09-29)||32.29|
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 18x. In other words, Open Text shares trade at around 18x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
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 0.87. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares 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 share prices of multiple high-growth companies.
Open Text's EBITDA
Open Text's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $995.2 million.
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||$3.5 billion|
|Operating margin TTM||19.75%|
|Gross profit TTM||$2.6 billion|
|Return on assets TTM||4.36%|
|Return on equity TTM||9.77%|
|Market capitalisation||$7.2 billion|
TTM: trailing 12 months
Open Text's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Open Text.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Open Text's total ESG risk score
Total ESG risk: 19.6
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Open Text's overall score of 19.6 (as at 01/01/2019) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Open Text is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Open Text's environmental score
Environmental score: 0.77/100
Open Text's environmental score of 0.77 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Open Text is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Open Text's social score
Social score: 11.04/100
Open Text's social score of 11.04 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Open Text is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Open Text's governance score
Governance score: 4.29/100
Open Text's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Open Text is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Environmental, social, and governance (ESG) summary
|Total ESG score||19.6|
|Total ESG percentile||13.6|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
Open Text share dividends
Dividend payout ratio: 28.13% of net profits
Recently Open Text has paid out, on average, around 28.13% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.59% 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 3.59% return on their shares, in the form of dividend payments. In Open Text's case, that would currently equate to about $0.884 per share.
While Open Text's payout ratio might seem fairly standard, it's worth remembering that Open Text may be investing much of the rest of its net profits in future growth.
Open Text's most recent dividend payout was on 23 September 2022. The latest dividend was paid out to all shareholders who bought their shares by 1 September 2022 (the "ex-dividend date").
Have Open Text's shares ever split?
Open Text's shares were split on a 2:1 basis on 25 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 shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Open Text shares which in turn could have impacted Open Text's share price.
Open Text share price volatility
Over the last 12 months, Open Text's shares have ranged in value from as little as $26.77 up to $51.4961. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Open Text's is 0.9848. This would suggest that Open Text's shares are less volatile than average (for this exchange).
Open Text overview
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.
Open Text in the news
OpenText and Solarity Initiate Strategic Partnership
ULTA Beauty taking steps to modernize its workforce with OpenText Solutions
Earnings are growing at Open Text (NASDAQ:OTEX) but shareholders still don't like its prospects
Frequently asked questionsWhat percentage of Open Text is owned by insiders or institutions?
Currently 1.8% of Open Text shares are held by insiders and 75.78% by institutions. How many people work for Open Text?
Latest data suggests 14,800 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 What is Open Text's CUSIP number?
Open Text's Committee on Uniform Securities Identification Procedures number is: 683715106
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