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Upturn AI SWOT - About
OTEX 
Open Text Corp (OTEX)
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Upturn Advisory Summary
03/27/2025: OTEX (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -20.04% | Avg. Invested days 39 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.73B USD | Price to earnings Ratio 10.35 | 1Y Target Price 35.09 |
Price to earnings Ratio 10.35 | 1Y Target Price 35.09 | ||
Volume (30-day avg) 1450520 | Beta 1.17 | 52 Weeks Range 24.61 - 37.21 | Updated Date 04/1/2025 |
52 Weeks Range 24.61 - 37.21 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 4.16% | Basic EPS (TTM) 2.45 |
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 - | When - | Estimate - | Actual - |
Profitability
Profit Margin 12.21% | Operating Margin (TTM) 23.05% |
Management Effectiveness
Return on Assets (TTM) 4.3% | Return on Equity (TTM) 16% |
Valuation
Trailing PE 10.35 | Forward PE 6.11 | Enterprise Value 12238030040 | Price to Sales(TTM) 1.24 |
Enterprise Value 12238030040 | Price to Sales(TTM) 1.24 | ||
Enterprise Value to Revenue 2.26 | Enterprise Value to EBITDA 5.84 | Shares Outstanding 264000000 | Shares Floating 253360324 |
Shares Outstanding 264000000 | Shares Floating 253360324 | ||
Percent Insiders 2.11 | Percent Institutions 75.54 |
Analyst Ratings
Rating 3.64 | Target Price 35.38 | Buy 1 | Strong Buy 4 |
Buy 1 | Strong Buy 4 | ||
Hold 9 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Open Text Corp
Company Overview
History and Background
Open Text Corp. was founded in 1991 as a spin-off from the University of Waterloo. Initially focused on search technology, it has evolved into a major provider of Enterprise Information Management (EIM) solutions through organic growth and acquisitions.
Core Business Areas
- OpenText Information Management (IM): Offers content services, process automation, and experience solutions to manage digital information across its lifecycle.
- OpenText Security and Protection (S&P): Provides cybersecurity solutions for data protection, endpoint security, and digital identity management.
Leadership and Structure
Mark J. Barrenechea is the CEO & CTO. The company operates with a functional organizational structure, with key departments including sales, marketing, engineering, and finance. It has a hierarchical structure.
Top Products and Market Share
Key Offerings
- OpenText Content Cloud: Cloud-based content management platform. Competitors include Microsoft SharePoint, Box, and Google Drive. Market share varies based on specific segments, but OpenText is a significant player in the EIM space.
- OpenText Cybersecurity: Includes endpoint security, data loss prevention (DLP) and threat detection capabilities. Competitors include CrowdStrike, Palo Alto Networks and Trellix. Again, market share varies but OpenText is a significant player in the cybersecurity space.
Market Dynamics
Industry Overview
The EIM and cybersecurity markets are experiencing growth due to increasing data volumes, regulatory requirements, and rising cybersecurity threats. Cloud adoption is a major trend.
Positioning
Open Text Corp. is positioned as a leading provider of EIM and cybersecurity solutions, focusing on large enterprises and organizations with complex information management needs. It competes on breadth of portfolio and integration capabilities.
Total Addressable Market (TAM)
The combined TAM for EIM and cybersecurity is estimated to be in the hundreds of billions of dollars. Open Text Corp. is positioned to capture a share of this TAM through its diverse product portfolio and strategic acquisitions.
Upturn SWOT Analysis
Strengths
- Broad product portfolio
- Strong brand recognition in the EIM space
- Established customer base
- Extensive partner ecosystem
- History of strategic acquisitions
Weaknesses
- Integration challenges from acquisitions
- High debt levels
- Complex product offerings
- Competition from larger tech companies
- Revenue growth has been inconsistent
Opportunities
- Growing demand for cloud-based EIM solutions
- Increasing cybersecurity threats
- Expansion into new markets
- Cross-selling opportunities across its product lines
- AI Integration
Threats
- Intense competition
- Rapid technological changes
- Economic downturns
- Data privacy regulations
- Security Breaches
Competitors and Market Share
Key Competitors
- MSFT
- ORCL
- SAP
- SNOW
Competitive Landscape
Open Text Corp. competes with larger, more diversified technology companies, as well as smaller, niche players. Its competitive advantages include its broad product portfolio and expertise in EIM. Its disadvantages include its complexity and higher debt levels.
Major Acquisitions
Micro Focus
- Year: 2023
- Acquisition Price (USD millions): 6000
- Strategic Rationale: Expanded Open Text's portfolio in areas like application modernization and security, creating cross-selling opportunities and scale.
Growth Trajectory and Initiatives
Historical Growth: Growth has been a mix of organic expansion and acquisitions. Future growth depends on integration success and market factors.
Future Projections: Analyst estimates vary, but generally project continued growth in line with the EIM and cybersecurity markets.
Recent Initiatives: Recent initiatives include focusing on cloud-based solutions, AI, and expanding its cybersecurity offerings through acquisitions.
Summary
Open Text is a significant player in the EIM and Cybersecurity space, with a wide range of product offerings and a history of growth via acquisition. Challenges include integration of acquired companies, high debt and competition from larger tech companies. Opportunities lie in cloud migration and expansion into high-growth areas. They need to monitor market dynamics and adapt quickly.
Similar Companies
MSFT
Microsoft Corporation
MSFT
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ORCL
Oracle Corporation
ORCL
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SAP
SAP SE ADR
SAP
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SNOW
Snowflake Inc.
SNOW
Snowflake Inc.
Sources and Disclaimers
Data Sources:
- Company Website
- Financial News Outlets
- Analyst Reports
- Gartner Reports
Disclaimers:
This analysis is based on publicly available information and analyst estimates and should not be considered 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 | Vice Chairman, CEO & CTO Mr. Mark J. Barrenechea | ||
Sector Technology | Industry Software - Application | Full time employees 21800 | Website https://www.opentext.com |
Full time employees 21800 | Website https://www.opentext.com | ||
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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