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OTEX

Strong BuyFLAG

Open Text Corporation · Technology · Canada · $6.1B · Avg Vol: $43M/d

85
StockRank
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Q
53
V
87
M
43
P/E (TTM)
9.4x
ROE
16.2%
D/E
1.5x
Dividend %
4.5%
AI CONVICTION THESIS

Open Text is very cheap at V86 with a buyback retiring 5.78% of shares, a large capital return, but momentum at M48 is below the calibrated floor and quality sits exactly on the floor at Q50, so stage one fails.

COMPANY DESCRIPTION

Open Text Corporation provides Enterprise Information Management (EIM) software and services, enabling organizations to manage and leverage their unstructured digital content. As a market leader in a critical enterprise software segment, the company benefits from a broad product portfolio, deep industry expertise, and high customer retention rates due to software embeddedness. Open Text is a prominent Canadian software company with a global footprint, known for strategic acquisitions to expand its EIM offerings and maintain competitive edge.

FINANCIAL SUMMARY (USD)

Year20212022202320242025CAGRTTM2027E2028EFwd CAGR
Revenue3.5B4.5B5.8B5.2B13.9%5.2B5.1B5.2B0.0%
EPS1.141.460.561.711.7110.7%2.581.511.65-1.2%
Shares265.8M270.9M267.8M254.8M-4.2%242.7M
Debt4.5B9.2B6.7B6.6B14.1%6.0B
Equity4.0B4.0B4.2B3.9B-0.9%
Op CF981.8M779.2M967.7M830.6M-5.4%1.0B
Inv CF-971.0M-5.7B2.1B-153.5M
Fin CF138.5M4.4B-3.0B-834.7M
Loading 1Y...
PRICE (1Y)+7.6%
21.5222.7523.9725.2026.42Jul 20Aug 10Aug 28
SMA 50SMA 200

Close
$25.10
RSI (14)
54.1
52W High
$38.70
From 52W High
0.6%

SCORE BREAKDOWN

Quality
53
ROIC
11.5%67.4
ROE
16.2%74.5
GP/Assets
30.8%68.8
Op. Margin
24.1%87.3
FCF/Assets
6.2%64.5
Piotroski
419.7
Int. Cover
3.4x33.4
D/E Ratio
1.49x6.8
Current Ratio
0.81x6.1
Value
87
P/E (TTM)
9.4x92.1
EV/EBITDA
6.6x86.1
P/FCF
7.5x90.9
P/B
1.4x78.1
P/S
1.1x76.7
Div Yield
4.5%90.0
Momentum
43
52W High %
65%48.3
RS 6M
-9%45.6
SMA 50/200
0.93x32.6
EPS Rev 4W
-4.8%7.7
EPS Rev 12W
-4.8%12.2
EPS Improve
+65%45.3
Q Growth
440%90.4

FUNDAMENTALS

Market Cap
$6.1B
P/E (Forward)
5.7x
Gross Margin
77.1%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of OTEX are excluded.

TickerCompanyMkt CapStockRankSignal
OTEXOpen Text Corporation(you)$6.1B85Strong Buy
DSG.TOThe Descartes Systems Group Inc.$7.0B77Buy
LMN.VLumine Group Inc.$4.6B78Buy
KXS.TOKinaxis Inc.$3.5B87Strong Buy
DCBO.TODocebo Inc.$639M91Strong Buy
ENGH.TOEnghouse Systems Limited$675M95Strong Buy
LSPD.TOLightspeed Commerce Inc.$1.4B57Hold
CSU.TOConstellation Software Inc.$48.2B66Buy
SHOPN.MXShopify Inc.$194.1B81Strong Buy
TCS.TOTecsys Inc.$322M68Buy

Peer medians: ROE -2.2% · P/E 38.7x · Gross margin 47.8%

Open Text Corporation (OTEX): Stock Score Summary

Open Text Corporation (OTEX) has a MoatMap StockRank of 85/100 based on Quality (53/100), Value (87/100), and Momentum (43/100) factor scores. The current signal is STRONG BUY. Open Text is very cheap at V86 with a buyback retiring 5.78% of shares, a large capital return, but momentum at M48 is below the calibrated floor and quality sits exactly on the floor at Q50, so stage one fails.

Open Text Corporation provides Enterprise Information Management (EIM) software and services, enabling organizations to manage and leverage their unstructured digital content. As a market leader in a critical enterprise software segment, the company benefits from a broad product portfolio, deep industry expertise, and high customer retention rates due to software embeddedness. Open Text is a prominent Canadian software company with a global footprint, known for strategic acquisitions to expand its EIM offerings and maintain competitive edge.

Key Financial Metrics

Price$25.10
Market Cap$6.1B
P/E (TTM)9.43
P/E (Forward)5.71
Price/Book1.44
Return on Equity16.2%
Return on Invested Capital11.5%
Debt/Equity1.49x
Gross Margin77.1%
Operating Margin24.1%
Revenue Growth2.9%
Dividend Yield4.5%
Free Cash Flow$808M

Open Text Corporation operates in the Software - Application industry, part of the Technology sector (Canada).

Frequently Asked Questions

What is Open Text Corporation’s (OTEX) StockRank?
MoatMap’s StockRank for Open Text Corporation (OTEX) is 85/100, with a Strong Buy signal. It is a composite of Quality (53), Value (87), and Momentum (43) factor ranks across MoatMap’s 20,000+ stock universe.
Does Open Text Corporation have an economic moat?
Open Text Corporation (OTEX) has a Quality factor score of 53/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Open Text Corporation a buy, hold, or sell?
MoatMap’s current signal for Open Text Corporation (OTEX) is Strong Buy, based on a StockRank of 85/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Open Text Corporation in?
Open Text Corporation (OTEX) operates in the Technology sector, specifically the Software - Application industry (Canada).