OTEX

Open Text Corporation

Fundamental data last updated:November 2, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

CA

Next Earnings Date

Pending Announcement

Business Summary

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.S. Corp., Deloitte Consulting LLP, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.

 


VALUATION

P/E

11.24

Market Cap ($M USD)

$5.66B

Forward P/E

4.12

PEG

0.02

PRICE TO SALES

1.09

PRICE TO BOOK

1.45

EV / EBITDA

6.87

5-Year Average P/E

Free Cash Flow Yield

14.28%

DCF Value

$138.05

Graham Number

$27.35

Price to FCF

7.00

EV to FCF

13.41

Earnings Yield

8.89%

FCF Yield

14.28%

DIVIDEND

Yield

4.67%

Annual Payout

$1.09

Payout Ratio

52.49%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.07

Next Year EPS Growth Estimate

$5.66

Next Year Revenue Growth Estimate

$5.27B

Return on Equity (ROE)

12.93%

FREE CASH FLOW

Operating Margin

21.09%

Debt-to-Equity

1.69

Piotroski F-Score

8

Altman Z-Score

1.17

Return on Invested Capital (ROIC)

10.11%

Current Ratio

0.92

Quick Ratio

0.92

Net Debt to EBITDA

3.28

Interest Coverage

3.12

Gross Profit margin

71.16%

FCF PER SHARE

$3.26

REVENUE PER SHARE

$20.94

Gainseekers Quantitative Analysis

Summary

OTEX appears significantly undervalued based on its DCF value and Graham Number, suggesting a market mispricing. The Forward P/E of 4.32 and an Earnings Yield of 8.43% indicate strong potential for growth at a bargain price. However, the Altman Z-score of 1.36 raises concerns about financial distress risk. Despite these worries, the stock’s valuation metrics suggest a compelling opportunity for value investors willing to navigate potential volatility.

AI Exposure / Tech Reliance

Operating within the Software - Application industry, OTEX is well-positioned to leverage AI and tech advancements. Its sector naturally aligns with digital transformation trends, providing a platform for innovation. This positioning could enhance its adaptability and competitive edge in a rapidly evolving market.

The Bull Case

For value and GARP investors, OTEX offers a tantalizing proposition. A robust ROIC of 10.14% and a Piotroski F-Score of 9 highlight its operational efficiency and financial health. The FCF Yield of 13.09% and strong operating margin of 21.09% underscore its ability to generate cash and sustain dividends. These metrics suggest a company with solid pricing power and capital efficiency, making it an attractive buy.

The Bear Case

Despite its strengths, OTEX faces structural risks. The Debt/Equity ratio of 1.69 signals potential leverage concerns, compounded by a Current Ratio below 1.0, indicating liquidity challenges. Trading significantly below its 52-week high, the stock shows technical weakness. These factors, combined with a modest interest coverage ratio of 3.12, suggest caution for risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$31.20

Institutional Ownership %

1-Year Beta

1.05

Insider Buying % (6 Mo)

Distance to 52-Week High

71.17%

Distance to 52-Week Low

14.20%

EARNINGS SURPRISE %

9.96%

50-DAY SMA

$22.77

200-DAY SMA

$29.91

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.