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Incorporated in 1991, OpenText has grown to be a leader in Information Management offering a comprehensive line of Information Management products and services that power and protect businesses of all sizes. OpenText s Information Management solutions manage the creation, capture, use, analysis and lifecycle of structured and unstructured data.
17.27% operating margin is respectable but not wide. ROIC at 7.89%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 10.4% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 15% versus the prior year, cash generation momentum has weakened. Net debt of $5.49B represents 8.0x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$5.21B
▼ -10.4% YoY
Net Income (TTM)
$516M
▼ -6.3% YoY
Op. Margin
18.14%
▲ +1.9pp YoY
ROIC
7.98%
▲ +2.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$810M
▼ -15.0% YoY
Op. Cash Flow (TTM)
$979M
▼ -14.2% YoY
Net Debt
$5.16B
Cash & Equiv.
$1.25B
5Y CAGR: +10.7%
5Y CAGR: -4.9%
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