Open Text Corporation (OTEX)
UndervaluedFundamental
84
Price
$27.95
Market Cap
$6.48B
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. The company has a strategic partnership with Cohere to develops and provides agentic AI to governments and regulated industries. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated with artificial intelligence on September 19, 2026, shared with all users
IBM sells enterprise content and document management (FileNet, Business Automation) plus IT operations software to the same large corporations and public bodies OpenText serves, and OpenText names it first among its competitors.
Microsoft covers the same need with SharePoint, Microsoft 365 and Purview, and increasingly with AI assistants on top of corporate documents, so it often wins the budget OpenText is bidding for even while partnering with it.
ServiceNow goes head to head with OpenText's IT Operations Management line for service desk, asset and workflow automation contracts inside large IT departments, and with it on enterprise AI agents.
Gen Digital (Norton, Avast) sells backup and endpoint protection to the same small businesses and consumers that OpenText addresses with Carbonite and Webroot.
Hyland, a private company that also owns Alfresco and Nuxeo, is the closest pure-play rival in content services: the same document-heavy workflows in healthcare, insurance and government that OpenText's Content line targets.
Box competes for the same corporate content budget with a cloud-native platform for storing, sharing and governing documents, and is the usual alternative when a customer wants simplicity instead of OpenText's on-premise heritage.
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
$54.16
Current Price
$27.95
Margin of Safety
+48.4%
Fair Value Range
$35.20 - $73.12
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
10.83
ROE
16.0%
P/B Ratio
1.69
P/FCF
8.38
Gross Margin
73.7%
ROIC
8.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
8.2%
WACC
5.8%
ROIC − WACC
+2.3 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (22)
- EPS shows upward trend
- EPS CAGR 9.89%
- ROIC 8.2%
- Gross margin 73.7%
- P/FCF 8.38
- P/B ratio 1.69
- 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 9.2%
- Earnings surprise, average 9.9%
- PEG ratio 0.56
- Earnings quality (operating cash flow / net income) 1.57
- Share dilution -5.7%
- Net margin trend 12.3% vs 8.4%
- Piotroski F-Score 9/9
Failed (3)
- Price CAGR -2.88%
- Low reliance on intangibles
- DCF valuation (Fairly Valued)
Unavailable (2)
- Dividend payout –
- Interest coverage
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Paul Thomas Jenkins CD, OC | Executive Chair | 66 |
| Mr. Ayman Antoun | CEO & Director | 59 |
| Mr. Christopher James McGourlay | President & Chief Client Officer | 56 |
| Mr. Steve Rai CPA | Executive VP & CFO | 55 |
| Mr. Cosmin Balota | Senior VP & Chief Accounting Officer | 50 |
| Mr. Todd M. Cione | President of Worldwide Sales | 55 |
| 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
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-08-06
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-05-07
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-01
via SEC EDGAR
Income History
via SEC EDGAR
Part 2 · The price and its context
This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Market Reaction Profile
How much OTEX moves, measured on its daily prices.
More volatile than 57% of the tracked stocks (90-day volatility).
- Volatility 30d
- 29.4%
- Volatility 90d
- 39.0%
- Beta vs S&P 500 (1y)
- 0.83Correlation 0.27
- Max drawdown (12m)
- -49.6%
- ATR (14d, % of price)
- 2.83%
Earnings reactions
How OTEX moved around its past quarterly results.
Next earnings release
Nov 5, 2026 · In 12 days · Before the open
EPS estimate: 0.93Revenue estimate: $1.2B
What usually happens
- Over the last 12 releases the stock moved a median of 5.5% the next day, up or down.
- Next-day moves: up 5, down 7 (out of 12).
- Of the 6 releases that beat estimates, the stock fell the next day after 2.
Release history
| Date | When | EPS est. | EPS actual | Surprise | Gap | 1 day | 5 days |
|---|---|---|---|---|---|---|---|
| Aug 6, 2026 | Before the open | 1.07 | 1.23 | +14.5% | +2.4% | 0.0% | -6.6% |
| May 7, 2026 | After the close | 0.94 | 1.01 | +7.5% | -2.2% | +4.3% | -5.5% |
| Feb 5, 2026 | After the close | 1.04 | 1.13 | +9.1% | +6.4% | +10.0% | +4.1% |
| Nov 5, 2025 | After the close | 0.94 | 1.01 | +7.5% | -0.2% | -5.4% | -8.4% |
| Aug 7, 2025 | After the close | 1.04 | 1.13 | +9.1% | +3.4% | +9.8% | +10.3% |
| Apr 30, 2025 | After the close | 0.75 | 0.82 | +8.6% | +0.9% | -4.6% | -0.8% |
| Feb 6, 2025 | After the close | n/a | n/a | n/a | +4.4% | -5.7% | -2.7% |
| Oct 31, 2024 | Before the open | n/a | n/a | n/a | -3.8% | -11.2% | -13.5% |
| Aug 1, 2024 | After the close | n/a | n/a | n/a | -3.2% | -6.6% | -1.5% |
| May 2, 2024 | After the close | n/a | n/a | n/a | -14.2% | -14.7% | -15.1% |
| Feb 1, 2024 | After the close | n/a | n/a | n/a | +3.1% | -2.3% | -6.8% |
| Nov 2, 2023 | After the close | n/a | n/a | n/a | +1.6% | +5.3% | +4.5% |
Release dates from SEC 8-K filings.
Updated 10/24/2026
Historical statistics for educational purposes only. They are not forecasts and not investment advice.
Price reaction to the news
Latest news on OTEX and what the price did next.
Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.
Latest News
Recent headlines for OTEX.