Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Open Text Corporation (OTEX)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$49.39 - $153.55$79.09
Multi-Stage$33.53 - $36.58$35.03
Blended Fair Value$57.06
Current Price$29.20
Upside95.41%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.55%11.97%1.041.031.000.910.810.730.650.560.460.38
YoY Growth--1.56%3.01%9.21%12.81%11.63%11.76%15.96%20.76%21.48%13.28%
Dividend Yield--3.57%3.09%2.84%3.46%1.66%1.72%1.59%1.48%1.44%1.18%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)490.20
(-) Cash Dividends Paid (M)270.97
(=) Cash Retained (M)219.23
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)98.0461.2736.76
Cash Retained (M)219.23219.23219.23
(-) Cash Required (M)-98.04-61.27-36.76
(=) Excess Retained (M)121.19157.95182.46
(/) Shares Outstanding (M)260.13260.13260.13
(=) Excess Retained per Share0.470.610.70
LTM Dividend per Share1.041.041.04
(+) Excess Retained per Share0.470.610.70
(=) Adjusted Dividend1.511.651.74
WACC / Discount Rate8.72%8.72%8.72%
Growth Rate5.50%6.50%7.50%
Fair Value$49.39$79.09$153.55
Upside / Downside69.14%170.86%425.86%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)490.20522.06556.00592.13630.62671.61691.76
Payout Ratio55.28%62.22%69.17%76.11%83.06%90.00%92.50%
Projected Dividends (M)270.97324.84384.56450.68523.77604.45639.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.72%8.72%8.72%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)295.98298.78301.59
Year 2 PV (M)319.27325.35331.49
Year 3 PV (M)340.91350.70360.67
Year 4 PV (M)361.00374.88389.16
Year 5 PV (M)379.60397.93416.97
PV of Terminal Value (M)7,024.857,364.157,716.44
Equity Value (M)8,721.609,111.809,516.32
Shares Outstanding (M)260.13260.13260.13
Fair Value$33.53$35.03$36.58
Upside / Downside14.82%19.96%25.29%

High-Yield Dividend Screener

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