Open Text (OTEX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Open Text

NasdaqGS•Technology•Software - Application

$23.06+0.45(0.02%)Market closed

Market Cap

$5.71B

P/E

8.9x

P/S

1.1x

P/B

1.4x

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.

How this company scores

GoodMetricSide Score: 79/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (14/25).

Profitability25/25

Growth16/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality24/25

Strengths

Rising free cash flowStrong marginsHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 8.9x5y range 8.9x – 67.8x

Currently below its 20-quarter median.

P/S · 1.1x5y range 1.0x – 2.5x

Currently below its 20-quarter median.

P/B · 1.4x5y range 1.4x – 2.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Revenue Decline

Watch

Revenue has softened, declining in 4 quarters. Watch for further erosion.

Price & Volume

Market Cap $5.71B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.25B
Q. Revenue: $1.35B
TTM EBITDA: $1.69B
TTM Op. Income: $1.08B
Q. Op. Income: $319.68M
TTM Net Income: $643.02M
Q. Net Income: $155.66M
EPS: $0.642
Shares Out.: $242.64M

$5.25B in TTM revenue grew 1.5% YoY, reaching $1.35B last quarter. TTM EBITDA of $1.69B and TTM operating income of $1.08B show growth is flowing through to the bottom line. TTM net income of $643.02M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 75.0%
EBITDA Margin: 34.5%
Op. Margin: 23.7%
Net Margin: 11.5%

Op. margin of 23.7% is up 9.8% YoY — cost efficiency is improving. Net margin at 11.5% and gross margin of 75.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 71% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 8.9x
P/S Ratio: 1.1x
P/B Ratio: 1.4x

At 8.9x P/E, the stock trades below typical market levels. P/S of 1.1x and P/B of 1.4x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 3 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $13.11B
Cash: $956.02M
Long-Term Debt: $5.73B
Book Value: $4.01B
D/E Ratio: 1.4
Debt/EBITDA: 12.3

With $13.11B in assets and $5.73B in long-term debt, D/E is 1.4and book value is $4.01B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $185.80M
TTM Free Cash Flow: $807.52M
FCF Margin: 15.4%
FCF / Net Income: 1.3

TTM FCF of $807.52M on $185.80M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 3 consecutive quarters — a weakening trend.