OTEX
NEUTRAL
$23.12
Live
Open Text Corporation · NASDAQ
Target $33.09
(+43.1%)
$20.0
52W Range
$39.9
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Apr 16, 2026
Market cap
$5.88B
P/E
12.99
ROE
10.5%
Profit margin
8.4%
Debt/Equity
1.63
Dividend yield
4.89%
AI Analysis
AI-powered fundamental assessment
Confidence
80%
OTEX presents a classic value trap profile: fundamentally cheap but lacking growth catalysts. The Piotroski F-Score of 5/9 indicates stable financial health, and the stock currently trades below its Graham Number ($25.5), suggesting a defensive margin of safety. However, this is offset by alarming growth metrics, including a -23.90% YoY earnings decline and a technical trend score of 0/100. While the dividend yield is attractive, the combination of high debt (D/E 1.63) and poor liquidity (Current Ratio 0.94) warrants caution.
Key Strengths
Strong Gross Margins (76.23%) indicating high product value
Attractive Dividend Yield of 4.89% with a sustainable payout ratio
Very low Forward P/E (5.25) suggesting significant undervaluation relative to earnings
Consistent track record of beating earnings estimates (3 of last 4 quarters)
Trading below the Graham Number ($25.5), providing a defensive valuation floor
Key Risks
Negative YoY Earnings Growth (-23.90%) and stagnant revenue growth
Weak liquidity position with Current Ratio (0.94) and Quick Ratio (0.82) below 1.0
High leverage with a Debt/Equity ratio of 1.63
Severe long-term price depreciation (-46.4% over 5 years)
Bearish technical trend (0/100) and poor insider sentiment (40/100)
AI Fair Value Estimate
Based on comprehensive analysis
$21.5
-7.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
54
Moderate
85
20
30
55
80
AI Verdict
Undervalued but Stagnant
Key drivers: Low P/E multiples, Negative growth trajectory, High dividend yield, Liquidity constraints
Confidence
85%
Value
85/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 12.99 is low for Tech
- Price is below Graham Number ($25.5)
Watchpoints
- Intrinsic value formula suggests a much lower floor ($12.46)
Future
20/100
Ref Growth rates
Positives
- Positive analyst target price ($33.09)
Watchpoints
- Negative YoY Revenue and Earnings growth
- Bearish technical trend
Past
30/100
Ref Historical trends
Positives
- Consistent earnings beats over 25 quarters
Watchpoints
- Poor 5Y (-46.4%) and 3Y (-34.7%) price performance
Health
55/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 5/9 (Stable)
Watchpoints
- Current Ratio < 1.0
- Debt/Equity 1.63
Dividend
80/100
Ref Yield, Payout
Positives
- High yield (4.89%)
- Reasonable payout ratio (62.87%)
Watchpoints
- Dividend strength is offset by declining earnings
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$23.12
Analyst Target
$33.09
Upside/Downside
+43.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for OTEX and closest competitors.
Updated 2026-04-15
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
OTEX
Open Text Corporation
Primary
|
-46.4% | -34.7% | -6.4% | -39.8% | +3.5% | +7.2% |
|
DBX
Dropbox, Inc.
Peer
|
-14.8% | +11.9% | -7.3% | -18.9% | -11.7% | +3.9% |
|
PLXS
Plexus Corp.
Peer
|
+143.3% | +130.0% | +82.8% | +48.3% | +14.0% | -0.2% |
|
ALGM
Allegro MicroSystems, Inc.
Peer
|
+15.8% | -31.1% | +18.6% | +4.5% | -27.3% | -2.5% |
|
ARW
Arrow Electronics, Inc.
Peer
|
+11.2% | +0.7% | -2.2% | -8.7% | +3.7% | -1.3% |
OTE
Open Text Corporation
Primary
5Y
-46.4%
3Y
-34.7%
1Y
-6.4%
6M
-39.8%
1M
+3.5%
1W
+7.2%
DBX
Dropbox, Inc.
Peer
5Y
-14.8%
3Y
+11.9%
1Y
-7.3%
6M
-18.9%
1M
-11.7%
1W
+3.9%
PLX
Plexus Corp.
Peer
5Y
+143.3%
3Y
+130.0%
1Y
+82.8%
6M
+48.3%
1M
+14.0%
1W
-0.2%
ALG
Allegro MicroSystems, Inc.
Peer
5Y
+15.8%
3Y
-31.1%
1Y
+18.6%
6M
+4.5%
1M
-27.3%
1W
-2.5%
ARW
Arrow Electronics, Inc.
Peer
5Y
+11.2%
3Y
+0.7%
1Y
-2.2%
6M
-8.7%
1M
+3.7%
1W
-1.3%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
12.99
Forward P/E
5.25
PEG Ratio
N/A
P/B Ratio
1.42
P/S Ratio
1.14
EV/Revenue
2.15
EV/EBITDA
7.32
Market Cap
$5.88B
Profitability
Profit margins and return metrics
Profit Margin
8.42%
Operating Margin
23.49%
Gross Margin
76.23%
ROE
10.55%
ROA
4.87%
Growth
Revenue and earnings growth rates
Revenue Growth
-0.6%
Earnings Growth
-23.9%
Q/Q Revenue Growth
-0.58%
Q/Q Earnings Growth
-26.9%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.63
High debt
Current Ratio
0.94
Weak
Quick Ratio
0.82
Poor
Cash/Share
$5.09
Financial Statement Flow
Interactive flow visualization showing how money moves through the company Q4 2025
Revenue
$1.3B
Gross Margin
74.0%
Op. Margin
23.5%
Net Margin
12.7%
Total Assets
$13.6B
Liabilities
$9.5B
Equity
$4.0B
Debt/Equity
2.36x
Operating CF
$0.3B
CapEx
$-0.0B
Free Cash Flow
$0.3B
FCF Yield
88%
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-07
$N/A
2026-02-05
$1.13
+10.2% surprise
2025-11-05
$1.05
+6.1% surprise
2025-08-07
$0.97
+17.1% surprise
Technology Sector Comparison
Comparing OTEX against 407 companies in the Technology sector
(35 bullish, 145 neutral, 227 bearish)
P/E Ratio
12.99
This Stock
vs
93.88
Sector Avg
-86.2%
(Discount)
Return on Equity (ROE)
10.55%
This Stock
vs
-34.23%
Sector Avg
-130.8%
(Below Avg)
Profit Margin
8.42%
This Stock
vs
-12.19%
Sector Avg
-169.1%
(Weaker)
Debt to Equity
1.63
This Stock
vs
0.66
Sector Avg
+146.8%
(Higher)
Revenue Growth
-0.6%
This Stock
vs
6059.24%
Sector Avg
-100.0%
(Slower)
Current Ratio
0.94
This Stock
vs
4.06
Sector Avg
-76.9%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
OTEX
Open Text Corporation
|
NEUTRAL | $5.88B | 12.99 | 10.5% | 8.4% | $23.12 | |
|
DBX
Dropbox, Inc.
|
NEUTRAL | $5.91B | 12.76 | -% | 20.2% | $23.6 | Compare |
|
PLXS
Plexus Corp.
|
NEUTRAL | $5.97B | 34.61 | 12.6% | 4.3% | $222.88 | Compare |
|
ALGM
Allegro MicroSystems, Inc.
|
BEARISH | $5.77B | - | -1.4% | -1.6% | $31.13 | Compare |
|
ARW
Arrow Electronics, Inc.
|
NEUTRAL | $6.01B | 13.08 | 7.6% | 1.6% | $116.66 | Compare |
OTEX
Open Text Corporation
NEUTRAL
Mkt Cap
$5.9B
P/E
13.0
ROE
10.5%
Price
$23.12
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
11 analysts
Citigroup
2026-02-09
Neutral
Neutral
RBC Capital
2026-02-06
Sector Perform
Sector Perform
CIBC
2026-01-16
Neutral
Neutral
Citigroup
2025-12-23
Neutral
Neutral
UBS
2025-11-07
Neutral
Neutral
Jefferies
2025-11-06
Hold
Hold
Citigroup
2025-10-30
Neutral
Neutral
CIBC
2025-10-29
Neutral
Neutral
Barclays
2025-10-21
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning OTEX from our newsroom.
Newest → oldest
No matching news yet.