Open Text Corporation (OTEX)
UndervaluedFundamental
91
Price
$22.93
Market Cap
$5.43B
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 on September 19, 2026 with claude-haiku-4-5 — 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
$56.82
Current Price
$22.93
Margin of Safety
+59.7%
Fair Value Range
$36.93 - $76.71
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
8.69
ROE
16.0%
P/B Ratio
1.35
P/FCF
6.72
Gross Margin
73.7%
ROIC
8.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
8.2%
WACC
5.1%
ROIC − WACC
+3.1 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (24)
- EPS shows upward trend
- EPS CAGR 9.89%
- ROIC 8.2%
- Gross Margin 73.7%
- P/FCF 6.72
- P/B Ratio 1.35
- 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
- DCF valuation (Undervalued)
- ROE 16.1%
- Revenue Growth 5Y 9.2%
- Analyst Consensus 67% Buy
- Earnings Surprise avg 9.6%
- PEG Ratio 0.47
- Earnings Quality (OCF/NI) 1.57
- Share Dilution -5.7%
- Net Margin Trend 12.3% vs 8.4%
- Piotroski F-Score 9/9
Failed (2)
- Price CAGR -2.88%
- Low reliance on intangibles
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
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
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.
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
Latest News
Recent headlines for OTEX, sourced from Markets Gazette.