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Open Text Corporation (OTEX)

POSITIVE
TechnologySoftware - ApplicationCanada

Fundamental

82

Price

$24.34

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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No competitor list for this company yet.

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

Undervalued

Fair Value

$48.25

Current Price

$24.34

Margin of Safety

+49.5%

Fair Value Range

$31.36 - $65.13

Estimation Methods

Analyst Target:$27.95
DCF:$103.13
PE-based:$14.86
Graham Growth:$82.51
EPV:$39.62
Analyst Consensus:Strong Buy (7B / 2H / 0S)
Last Earnings Surprise:+14.54%

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

9/9

Strong financial health

score
criteria

Earnings Quality

1.57

High quality: earnings backed by cash

Share Dilution

-5.7%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Paul Thomas Jenkins CD, OCExecutive Chair66
Mr. Ayman AntounCEO & Director59
Mr. Steve Rai C.P.A.Executive VP & CFO55
Mr. Cosmin BalotaSenior VP & Chief Accounting Officer50
Mr. Todd M. CionePresident of Worldwide Sales55
Mr. Christopher James McGourlayPresident & Chief Client Officer56
Mr. Muhi S. MajzoubExecutive Vice President, Product and Engineering65
Ms. Shannon BellExecutive VP, Chief Digital Officer & Chief Information Officer50
Mr. Harry Edward BlountSenior VP & Global Head of Investor Relations-
Mr. Michael F. AcedoExecutive VP, Chief Legal Officer & Corporate Secretary44

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.

No recent news for OTEX.