Open Text Corporation (OTEX)
POSITIVEFundamental
82
Price
$24.22
Market Cap
$5.95B
Part 1 · What the company is worth
Overview
Open Text Corporation provides data management solutions for enterprise AI in North, Central and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China. Its products and solutions help organizations collect, connect, contextualize, protect, govern, use, and secure data across their operations. The company offers cloud services and subscriptions, including software as a service offerings, application programming interfaces and data services, and private cloud products, such as hosted services and managed service arrangements; foundational platform of technology services; and packaged business applications, as well as managed services and outsourced B2B integration solutions, including program implementation, operational management, and customer support. It also engages in licensing software products to customers; and consulting and learning services, such as implementation, training, and integration of licensed product offerings into the customer's systems. In addition, the company offers content, business network, observability and service management, cybersecurity, application delivery management, and analytics. It has partnerships with SAP SE, Google Cloud, Amazon Web Services, Microsoft Corporation, Oracle Corporation, and SALESFORCE, INC., as well as global systems integrators, including Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. The company serves global 10,000 organizations, enterprise companies, public sector agencies, mid-market companies, SMBS, and direct consumers. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.
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Direct competitors
Who this company fights with for the same customers
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Balance Sheet & Liquidity
Revenue
$5.25B
Trailing 12 months (through 6/30/2026)
Net Income
$643M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$808M
Total Equity
$4.01B
Total Liabilities
$9.09B
Current Ratio
0.81
Interest Coverage
-
Debt/EBITDA
3.66
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$48.25
Current Price
$24.22
Margin of Safety
+49.8%
Fair Value Range
$31.36 - $65.13
Estimation Methods
Valuation Metrics
P/E Ratio
9.53
ROE
16.0%
P/B Ratio
1.48
P/FCF
7.37
Gross Margin
73.7%
ROIC
8.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
8.2%
WACC
5.4%
ROIC − WACC
+2.8 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (23)
- EPS shows upward trend
- EPS CAGR 9.89%
- ROIC 8.2%
- Gross Margin 73.7%
- P/FCF 7.37
- P/B Ratio 1.48
- Debt/Equity ratio
- Operating Margin 20.6%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Price below Graham Number
- ROE 16.1%
- Revenue Growth 5Y 10.7%
- Analyst Consensus 78% Buy
- Earnings Surprise avg 9.6%
- PEG Ratio 0.65
- Earnings Quality (OCF/NI) 1.57
- Share Dilution -5.7%
- Net Margin Trend 12.3% vs 8.4%
- Piotroski F-Score 9/9
Failed (3)
- Price CAGR -2.23%
- Low reliance on intangibles
- DCF valuation (Fairly valued)
Unavailable (2)
- Dividend Payout NaN%
- Interest Coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Paul Thomas Jenkins CD, OC | Executive Chair | 66 |
| Mr. Ayman Antoun | CEO & Director | 59 |
| Mr. Steve Rai C.P.A. | Executive VP & CFO | 55 |
| Mr. Cosmin Balota | Senior VP & Chief Accounting Officer | 50 |
| Mr. Todd M. Cione | President of Worldwide Sales | 55 |
| Mr. Christopher James McGourlay | President & Chief Client Officer | 56 |
| Mr. Muhi S. Majzoub | Executive Vice President, Product and Engineering | 65 |
| Ms. Shannon Bell | Executive VP, Chief Digital Officer & Chief Information Officer | 50 |
| Mr. Harry Edward Blount | Senior VP & Global Head of Investor Relations | - |
| Mr. Michael F. Acedo | Executive VP, Chief Legal Officer & Corporate Secretary | 44 |
Audit Risk
2
Board Risk
9
Compensation Risk
7
Shareholder Rights Risk
3
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for OTEX, sourced from Markets Gazette.