OTEX Stock Analysis: Open Text | NASDAQ

Cloud Software, Cybersecurity, Content Management, Analytics

Total Rating 44

Safety 64

Buy Signal -0.88

Software - Application
Industry Rotation: +7.2

Market Cap: 5.81B
Avg Turnover: 43.6M

Risk 3d forecast

Volatility36.9%

VaR 5^th Pctl6.54%

VaR vs Median7.64%

Reward TTM

Sharpe Ratio-0.46

Rel. Str. IBD15.3

Rel. Str. Peer Group20.2

Character TTM

Beta0.687

Beta Downside0.799

Hurst Exponent0.464

Drawdowns 3y

Max DD50.41%

CAGR/Max DD-0.19

CAGR/Mean DD-0.38

EPS (Earnings per Share)

EPS CAGR: 1.81%
EPS Trend: 31.1%

Last SUE: 1.79
Qual. Beats: 5

Revenue

Rev. CAGR: 5.50%
Rev. Trend: 30.0%

Last SUE: 0.66
Qual. Beats: 0

Warnings

Below Avwap Earnings

Below Sma 200d

Tailwinds

No distinct edge detected

Seasonality 11.6 years of data

Jan +0.8% 20

Feb -4.6% 23

Mar -0.1% 7

Apr -0.9% 8

May +1.9% 23

Jun +0.1% 5

Jul +3.8% 55

Aug -0.6% 0

Sep -2.3% 15

Oct -5.2% 27

Nov +0.4% 13

Dec -1.0% 0

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.

Description: OTEX Open Text

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.

Headlines to Watch Out For

Cloud subscriptions accelerate recurring revenue mix
Micro Focus integration drives margin expansion and deleveraging
Enterprise IT budgets tighten on macro uncertainty

Piotroski VR-10 (Strict) 7.5

Net Income: 1.13b TTM > 0 and > 6% of Revenue
FCF/TA: 0.11 > 0.02 and ΔFCF/TA 6.43 > 1.0
NWC/Revenue: -5.53% < 20% (prev -10.56%; Δ 5.03% < -1%)
CFO/TA 0.14 > 3% & CFO 1.82b > Net Income 1.13b
Net Debt (5.22b) to EBITDA (3.12b): 1.67 < 3
Current Ratio: 0.81 > 1.5 & < 3
Outstanding Shares: last quarter (249.4m) vs 12m ago -3.24% < -2%
Gross Margin: 73.55% > 18% (prev 72.25%; Δ 1.30% > 0.5%)
Asset Turnover: 68.03% > 50% (prev 37.52%; Δ 30.51% > 0%)
Interest Coverage Ratio: 3.54 > 6 (EBIT TTM 2.06b / Interest Expense TTM 580.1m)

Altman Z'' 1.74

A: -0.04 (Total Current Assets 2.12b - Total Current Liabilities 2.62b) / Total Assets 13.1b
B: 0.15 (Retained Earnings 2.02b / Total Assets 13.1b)
C: 0.15 (EBIT TTM 2.06b / Avg Total Assets 13.4b)
D: 0.44 (Book Value of Equity 4.01b / Total Liabilities 9.09b)
Altman-Z'' = 1.74 = BBB

Beneish M -4.00

DSRI: 0.62 (Receivables 926.2m/846.4m, Revenue 9.14b/5.17b)
GMI: 0.98 (GM 72.25% / 73.55%)
AQI: -61.68 (AQ_t -49.26 / AQ_t-1 0.80)
SGI: 1.77 (Revenue 9.14b / 5.17b)
TATA: -0.05 (NI 1.13b - CFO 1.82b) / TA 13.1b)
Beneish M = -39.98 (Cap -4..+1) = AAA

What is the price of OTEX shares?

As of August 15, 2026, the stock is trading at USD 24.54 with a total of 1,189,106 shares traded. Over the past week, the price has changed by -1.60%, over one month by +9.21%, over three months by +10.89% and over the past year by -17.81%.

Current recommended Stop Loss: 22.70 (which is 7.5% or 1.8 ATR below the current price).

Is OTEX a buy, sell or hold?

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

What are the forecasts/targets for the OTEX price?

Analysts Target Price	28	13.9%

Open Text (OTEX) - Fundamental Data Overview as of 14 August 2026

Market Cap USD = 5.81b (5.81b USD * 1.0 USD.USD)
P/E Trailing = 9.2829
P/E Forward = 6.5104
P/S = 1.1053
P/B = 1.4911
P/EG = 1.0165
Revenue TTM = 9.14b USD
EBIT TTM = 2.06b USD
EBITDA TTM = 3.12b USD
Long Term Debt = 5.73b USD (from longTermDebt, last quarter)
Short Term Debt = 99.5m USD (from shortTermDebt, last quarter)
Debt = 6.17b USD (from shortLongTermDebtTotal, last quarter) + Leases 202.0m
Net Debt = 5.22b USD (calculated: Debt 6.17b - CCE 956.0m)
Enterprise Value = 11.0b USD (5.81b + Debt 6.17b - CCE 956.0m)
Interest Coverage Ratio = 3.54 (Ebit TTM 2.06b / Interest Expense TTM 580.1m)
EV/FCF = 7.40x (Enterprise Value 11.0b / FCF TTM 1.49b)
FCF Yield = 13.51% (FCF TTM 1.49b / Enterprise Value 11.0b)
FCF Margin = 16.29% (FCF TTM 1.49b / Revenue TTM 9.14b)
Net Margin = 12.36% (Net Income TTM 1.13b / Revenue TTM 9.14b)
Gross Margin = 73.55% ((Revenue TTM 9.14b - Cost of Revenue TTM 2.42b) / Revenue TTM)
Gross Margin QoQ = 73.74% (prev 73.08%)
Tobins Q-Ratio = 0.84 (Enterprise Value 11.0b / Total Assets 13.1b)
Interest Expense / Debt = 9.40% (Interest Expense 580.1m / Debt 6.17b)
Taxrate = 22.93% (336.4m / 1.47b)
NOPAT = 1.58b (EBIT 2.06b * (1 - 22.93%))
Current Ratio = 0.81 (Total Current Assets 2.12b / Total Current Liabilities 2.62b)
Debt / Equity = 1.54 (Debt 6.17b / totalStockholderEquity, last quarter 4.01b)
Debt / EBITDA = 1.67 (Net Debt 5.22b / EBITDA 3.12b)
Debt / FCF = 3.50 (Net Debt 5.22b / FCF TTM 1.49b)
Total Stockholder Equity = 4.00b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.41% (Net Income 1.13b / Total Assets 13.1b)
RoE = 28.29% (Net Income TTM 1.13b / Total Stockholder Equity 4.00b)
RoCE = 21.12% (EBIT 2.06b / Capital Employed (Equity 4.00b + L.T.Debt 5.73b))
RoIC = 15.64% (NOPAT 1.58b / Invested Capital 10.1b)
WACC = 7.80% (E(5.81b)/V(12.0b) * Re(8.40%) + D(6.17b)/V(12.0b) * Rd(9.40%) * (1-Tc(0.23)))
Discount Rate = 8.40% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.54 | Cagr: -3.95%
[DCF] Terminal Value 77.97% ; FCFF base≈1.17b ; Y1≈1.34b ; Y5≈1.97b
[DCF] Fair Price = 100.5 (EV 29.6b - Net Debt 5.22b = Equity 24.4b / Shares 242.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 31.15 | EPS CAGR: 1.81% | SUE: 1.79 | # QB: 5
Revenue Correlation: 29.99 | Revenue CAGR: 5.50% | SUE: 0.66 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.93 | Chg30d=-13.37% | Revisions=+44% | Analysts=11
EPS next Quarter (2026-12-31): EPS=1.01 | Chg30d=-11.98% | Revisions=+22% | Analysts=9
EPS current Year (2027-06-30): EPS=3.90 | Chg30d=-12.91% | Revisions=-17% | GrowthEPS=-11.7% | GrowthRev=-1.6%
EPS next Year (2028-06-30): EPS=4.26 | Chg30d=-24.25% | Revisions=-25% | GrowthEPS=+9.1% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: +21% (up=10, down=6)