OTEX Stock Analysis: Open Text | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 5.661m USD | 12M Return: -18.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 30.8M
EPS Trend: 41.0%
Qual. Beats: 4
Rev. Trend: 2.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Open Text Corporation is a Canadian enterprise information management software company that operates globally across the Americas, EMEA, and APAC. Incorporated in 1991 and headquartered in Waterloo, Canada, the company trades on NASDAQ under the ticker OTEX and is classified within the Application Software sub-industry (GICS Information Technology).
Its business model is built on three primary revenue streams: recurring cloud services and subscriptions (including SaaS, APIs, data services, and managed/hosted offerings), software licensing fees, and consulting/learning services for implementation, training, and integration. This mix reflects the broader Application Software sectors ongoing transition from perpetual licensing toward subscription and consumption-based pricing.
Open Text sells a portfolio of business clouds covering content management, cybersecurity, DevOps, business network, observability and service management, and analytics, alongside AI and developer API services. The company serves G10K organizations, large enterprises, public sector agencies, mid-market firms, and SMBs, and is supported by strategic partnerships with hyperscalers (Google Cloud, AWS, Microsoft) and major enterprise software vendors (SAP, Oracle, Salesforce), as well as global systems integrators such as Accenture, Deloitte, and TCS.
- Cloud subscriptions accelerate recurring revenue mix
- Micro Focus integration drives margin expansion and deleveraging
- Enterprise IT budgets tighten on macro uncertainty
| Net Income: 513.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.97 > 1.0 |
| NWC/Revenue: -3.80% < 20% (prev -6.93%; Δ 3.13% < -1%) |
| CFO/TA 0.07 > 3% & CFO 977.5m > Net Income 513.8m |
| Net Debt (5.38b) to EBITDA (1.59b): 3.39 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (248.0m) vs 12m ago -6.02% < -2% |
| Gross Margin: 71.16% > 18% (prev 69.83%; Δ 1.34% > 0.5%) |
| Asset Turnover: 38.27% > 50% (prev 37.95%; Δ 0.32% > 0%) |
| Interest Coverage Ratio: 2.76 > 6 (EBIT TTM 967.5m / Interest Expense TTM 350.7m) |
| A: -0.01 (Total Current Assets 2.35b - Total Current Liabilities 2.54b) / Total Assets 13.4b |
| B: 0.15 (Retained Earnings 1.95b / Total Assets 13.4b) |
| C: 0.07 (EBIT TTM 967.5m / Avg Total Assets 13.6b) |
| D: 0.42 (Book Value of Equity 3.98b / Total Liabilities 9.39b) |
| Altman-Z'' = 1.30 = BB |
| DSRI: 1.16 (Receivables 740.9m/641.0m, Revenue 5.19b/5.22b) |
| GMI: 0.98 (GM 69.83% / 71.16%) |
| AQI: 0.98 (AQ_t 0.78 / AQ_t-1 0.80) |
| SGI: 0.99 (Revenue 5.19b / 5.22b) |
| TATA: -0.03 (NI 513.8m - CFO 977.5m) / TA 13.4b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of July 28, 2026, the stock is trading at USD 23.62 with a total of 1,468,509 shares traded. Over the past week, the price has changed by +1.24%, over one month by +6.93%, over three months by +6.17% and over the past year by -18.47%.
Current recommended Stop Loss: 21.10 (which is 10.7% or 2.8 ATR below the current price).
Open Text has received a consensus analysts rating of 3.25. Therefore, it is recommended to hold OTEX.
- StrongBuy: 0
- Buy: 3
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 29 | 22.8% |
P/E Trailing = 11.3252
P/E Forward = 5.2356
P/S = 1.0871
P/B = 1.4251
P/EG = 1.0165
Revenue TTM = 5.19b USD
EBIT TTM = 967.5m USD
EBITDA TTM = 1.59b USD
Long Term Debt = 6.17b USD (from longTermDebt, last quarter)
Short Term Debt = 99.7m USD (from shortTermDebt, last quarter)
Debt = 6.64b USD (from shortLongTermDebtTotal, last quarter) + Leases 203.8m
Net Debt = 5.38b USD (calculated: Debt 6.64b - CCE 1.26b)
Enterprise Value = 11.0b USD (5.66b + Debt 6.64b - CCE 1.26b)
Interest Coverage Ratio = 2.76 (Ebit TTM 967.5m / Interest Expense TTM 350.7m)
EV/FCF = 13.67x (Enterprise Value 11.0b / FCF TTM 807.6m)
FCF Yield = 7.32% (FCF TTM 807.6m / Enterprise Value 11.0b)
FCF Margin = 15.56% (FCF TTM 807.6m / Revenue TTM 5.19b)
Net Margin = 9.90% (Net Income TTM 513.8m / Revenue TTM 5.19b)
Gross Margin = 71.16% ((Revenue TTM 5.19b - Cost of Revenue TTM 1.50b) / Revenue TTM)
Gross Margin QoQ = 65.31% (prev 74.03%)
Tobins Q-Ratio = 0.83 (Enterprise Value 11.0b / Total Assets 13.4b)
Interest Expense / Debt = 5.28% (Interest Expense 350.7m / Debt 6.64b)
Taxrate = 16.66% (102.7m / 616.8m)
NOPAT = 806.3m (EBIT 967.5m * (1 - 16.66%))
Current Ratio = 0.92 (Total Current Assets 2.35b / Total Current Liabilities 2.54b)
Debt / Equity = 1.67 (Debt 6.64b / totalStockholderEquity, last quarter 3.98b)
Debt / EBITDA = 3.39 (Net Debt 5.38b / EBITDA 1.59b)
Debt / FCF = 6.66 (Net Debt 5.38b / FCF TTM 807.6m)
Total Stockholder Equity = 3.97b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.79% (Net Income 513.8m / Total Assets 13.4b)
RoE = 12.93% (Net Income TTM 513.8m / Total Stockholder Equity 3.97b)
RoCE = 9.53% (EBIT 967.5m / Capital Employed (Equity 3.97b + L.T.Debt 6.17b))
RoIC = 7.56% (NOPAT 806.3m / Invested Capital 10.7b)
WACC = 6.72% (E(5.66b)/V(12.3b) * Re(9.43%) + D(6.64b)/V(12.3b) * Rd(5.28%) * (1-Tc(0.17)))
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.73 | Cagr: -4.05%
[DCF] Terminal Value 77.97% ; FCFF base≈763.6m ; Y1≈875.3m ; Y5≈1.29b
[DCF] Fair Price = 57.73 (EV 19.4b - Net Debt 5.38b = Equity 14.0b / Shares 242.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 40.97 | EPS CAGR: 3.07% | SUE: 1.31 | # QB: 4
Revenue Correlation: 2.06 | Revenue CAGR: 0.18% | SUE: -0.22 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.09 | Chg30d=+2.03% | Revisions=+44% | Analysts=5
EPS current Year (2026-06-30): EPS=4.23 | Chg30d=-0.02% | Revisions=+0% | GrowthEPS=+10.8% | GrowthRev=+1.0%
EPS next Year (2027-06-30): EPS=4.48 | Chg30d=-0.16% | Revisions=+0% | GrowthEPS=+5.7% | GrowthRev=+0.9%
[Analyst] Revisions Ratio: +36% (up=6, down=2)