Stock AnalizOpen Text Corp. OTEX
EDP Services · IPO 1996 · data as of November 13, 2026
Open Text Corp. (OTEX) is a technology company listed in the US with a market value of about $6.0B. In the twelve months to September 30, 2026 it had revenue of $5.2B and net income of $652M, a net margin of 12.5%.
Its overall Stock Analiz score is 3.6 out of 5 (good). The strongest part is value (5/5); the weakest is future growth (2/5).
Key numbers: a P/E of 9.4, a price to free cash flow of 7.1, 5-year revenue growth of 9% a year, a 5-year average ROIC of 6%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 54% above the current price.
Score: 3.6 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Profit margin improving
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
Checks not passed
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- 5-year average ROIC above 12%
- More cash than debt, or low debt to equity
- Debt below 3 years of free cash flow
- Liabilities below 60% of assets
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.2B | $5.2B | $5.2B | $5.8B | $4.5B | $3.5B | $3.4B | $3.1B | $2.9B | $2.8B | $2.3B |
| Net income | $652M | $643M | $436M | $465M | $150M | $397M | $311M | $234M | $286M | $242M | $1.0B |
| Free cash flow | $845M | $808M | $687M | $808M | $655M | $889M | $812M | $882M | $812M | $603M | $361M |
| EPS (diluted) | $2.64 | $2.58 | $1.65 | $1.71 | $0.56 | $1.46 | $1.14 | $0.86 | $1.06 | $0.91 | $4.01 |
| Net margin | 12.5% | 12.3% | 8.4% | 8.1% | 3.4% | 11.4% | 9.2% | 7.5% | 10.0% | 8.6% | 44.8% |
| ROIC | — | 8.1% | 7.6% | 5.2% | 2.6% | 5.8% | 7.3% | 4.0% | 5.7% | 4.4% | 3.9% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 11 analysts is $28.14, 13% above the current price; targets range from $25.00 to $33.00; the consensus rating is “Hold”; expected EPS is $3.94 for the fiscal year ending June 30, 2027.
Frequently asked questions
What is Open Text’s P/E ratio?
About 9.4, based on the last twelve months of diluted earnings per share (forward P/E about 6.2).
Is Open Text stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 54% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Open Text pay a dividend?
Yes. The dividend yield is about 4.49%, and it has paid dividends for 10 years in our data.
Is Open Text a good stock to buy?
We do not give buy or sell advice. Open Text scores 3.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.