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Open Text Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Open Text has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Open Text's Piotroski F-Score or its related term are showing as below:

OTEX' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of Open Text was 8. The lowest was 4. And the median was 6.


Open Text Piotroski F-Score Historical Data

The historical data trend for Open Text's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Open Text Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 8.00 5.00 6.00 7.00

Open Text Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 6.00 8.00 7.00

Competitive Comparison

For the Software - Application subindustry, Open Text's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Open Text Piotroski F-Score Distribution

For the Software industry and Technology sector, Open Text's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Open Text's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 131.915 + 88.298 + 74.681 + 102.196 = $397 Mil.
Cash Flow from Operations was 189.669 + 216.644 + 323.557 + 251.94 = $982 Mil.
Revenue was 832.308 + 876.799 + 882.283 + 902.454 = $3,494 Mil.
Gross Profit was 574.185 + 615.618 + 608.047 + 633.793 = $2,432 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(9609.336 + 9519.364 + 10164.53 + 10162.639 + 10178.973) / 5 = $9926.9684 Mil.
Total Assets at the begining of this year (Jun21) was $9,609 Mil.
Long-Term Debt & Capital Lease Obligation was $4,408 Mil.
Total Current Assets was $2,285 Mil.
Total Current Liabilities was $1,468 Mil.
Net Income was 103.376 + -65.477 + 91.49 + 181.283 = $311 Mil.

Revenue was 804.013 + 855.644 + 832.931 + 893.527 = $3,386 Mil.
Gross Profit was 555.088 + 603.082 + 571.665 + 621.814 = $2,352 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(10234.822 + 10161.814 + 9769.098 + 9556.621 + 9609.336) / 5 = $9866.3382 Mil.
Total Assets at the begining of last year (Jun20) was $10,235 Mil.
Long-Term Debt & Capital Lease Obligation was $3,803 Mil.
Total Current Assets was $2,202 Mil.
Total Current Liabilities was $1,362 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Open Text's current Net Income (TTM) was 397. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Open Text's current Cash Flow from Operations (TTM) was 982. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=397.09/9609.336
=0.04132335

ROA (Last Year)=Net Income/Total Assets (Jun20)
=310.672/10234.822
=0.03035441

Open Text's return on assets of this year was 0.04132335. Open Text's return on assets of last year was 0.03035441. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Open Text's current Net Income (TTM) was 397. Open Text's current Cash Flow from Operations (TTM) was 982. ==> 982 > 397 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=4408.262/9926.9684
=0.44406931

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=3803.312/9866.3382
=0.38548364

Open Text's gearing of this year was 0.44406931. Open Text's gearing of last year was 0.38548364. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=2285.367/1468.258
=1.55651595

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=2202.06/1361.904
=1.61689811

Open Text's current ratio of this year was 1.55651595. Open Text's current ratio of last year was 1.61689811. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Open Text's number of shares in issue this year was 270.319. Open Text's number of shares in issue last year was 273.98. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2431.643/3493.844
=0.69597927

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2351.649/3386.115
=0.69449768

Open Text's gross margin of this year was 0.69597927. Open Text's gross margin of last year was 0.69449768. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=3493.844/9609.336
=0.36358849

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=3386.115/10234.822
=0.33084259

Open Text's asset turnover of this year was 0.36358849. Open Text's asset turnover of last year was 0.33084259. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Open Text has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Open Text  (NAS:OTEX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Open Text Piotroski F-Score Related Terms

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Open Text Business Description

Open Text logo
Traded in Other Exchanges
Address
275 Frank Tompa Drive, Waterloo, ON, CAN, N2L 0A1
Open Text Corp grew out of a technology project involving the Oxford English Dictionary at Canada's University of Waterloo in the mid-1980s. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, presentations). The company is based in Ontario, Canada.

Open Text Headlines

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