# Open Text Corporation (OTEX) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / Software. Price $25.76, market value $6.3 billion.

## Valuation
- **P/E (trailing): 10.0×** (5-yr avg 26.3×, 3-yr avg 13.8×). Open Text Corporation trades at 10.0× trailing earnings, well below its own five-year average of 26.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 6.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.11**. A PEG of 0.11 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.3×**. Enterprise value is 6.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.9%** (5-yr avg 10.2%). Free cash flow equals 12.9% of the market value, above its five-year average of 10.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 10.0%**. The inverse of the P/E: 10.0% of the price is earned each year.

## Profitability
- **Gross margin: 69.7%**. Open Text Corporation keeps 69.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 22.8%**. 22.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 12.3%**. 12.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.0%**. 16.0% on shareholders' equity is solid.
- **Return on invested capital: 9.8%**. Return on all capital, debt included, is 9.8%.
- **Return on assets: 4.9%**. Each dollar of assets produces 4.9% of profit.

## Growth
- **Revenue growth (1 yr): 1.5%** (3-yr 5.4%/yr, 5-yr 9.2%/yr). Revenue grew 1.5% over the last year, against 9.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 52.7%** (3-yr 66.4%/yr, 5-yr 16.9%/yr). Earnings per share rose 52.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 7.2%/yr**. Free cash flow has compounded at 7.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.49**. Debt is 1.49 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.8×**. It would take 2.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.5×**. Operating profit covers interest 3.5× over, a safe margin.
- **Current ratio: 0.81** (quick 0.81). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.50**. A Z-score of 1.50 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 9/9**. 9 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 4.35%** ($1.10 per share, trailing). Open Text Corporation yields 4.35%, an income-level yield.
- **Payout ratio: 42%** (33% of free cash flow). 42% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 8.2%/yr** (1-yr 4.9%). The dividend has grown 8.2% a year over five years.
- **Shareholder yield: 11.8%**. Dividends plus net buybacks return 11.8% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (11 analysts). 11 analysts cover Open Text Corporation; the consensus is hold, with an average price target of $27.95 (+9% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -28.7%** (YTD -16.8%, 3-mo 1.6%). The shares are down 28.7% over twelve months including dividends.
- **From 52-week high: -32.7%** (30.2% above the low). Trading 33% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.79** (volatility 38%). Beta of 0.79 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=OTEX · Page: https://foliofundamentals.com/stocks/otex

Not investment advice.