Open Text Corp (OTEX) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Open Text Corp stock (OTEX) is currently trading at $22.08. Open Text Corp PE ratio is 12.91. Open Text Corp PS ratio (Price-to-Sales) is 1.08. Analyst consensus price target for OTEX is $33.09. WallStSmart rates OTEX as Hold.
- OTEX PE ratio analysis and historical PE chart
- OTEX PS ratio (Price-to-Sales) history and trend
- OTEX intrinsic value — DCF, Graham Number, EPV models
- OTEX stock price prediction 2025 2026 2027 2028 2029 2030
- OTEX fair value vs current price
- OTEX insider transactions and insider buying
- Is OTEX undervalued or overvalued?
- Open Text Corp financial analysis — revenue, earnings, cash flow
- OTEX Piotroski F-Score and Altman Z-Score
- OTEX analyst price target and Smart Rating
Open Text Corp
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OTEX Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Open Text Corp (OTEX)
OTEX trades 109% above its Graham fair value of $11.63, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Open Text Corp (OTEX) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, operating margin, price/sales. Concerns around revenue growth and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Open Text Corp (OTEX) Key Strengths (6)
90.81% of shares held by major funds and institutions
Good growth relative to its price
Strong operational efficiency: $24 kept per $100 revenue
Paying $1.08 for every $1 of annual revenue
Trading at 1.40x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Open Text Corp (OTEX) Areas to Watch (4)
Revenue declining -0.60%, a shrinking business
Earnings declining -23.90%, profits shrinking
Thin profit margins with limited profitability
Moderate profitability with room for improvement
Open Text Corp (OTEX) Detailed Analysis Report
Overall Assessment
This company scores 58/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.2/10) while 4 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., PEG Ratio, Operating Margin. Valuation metrics including PEG Ratio (1.02), Price/Sales (1.08), Price/Book (1.40) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 23.50%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Profit Margin. Growth concerns include Revenue Growth at -0.60%, EPS Growth at -23.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 10.50%, Profit Margin at 8.42%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 10.50% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -0.60% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Institutional Own., PEG Ratio) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
OTEX Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
OTEX's Price-to-Sales ratio of 1.08x trades at a deep discount to its historical average of 8.45x (0th percentile). The current valuation is 94% below its historical high of 17.17x set in Jan 2014, and 0% above its historical low of 1.08x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~1.2x as trailing revenue scaled faster than the stock price.
Compare OTEX with Competitors
Top SOFTWARE - APPLICATION stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Open Text Corp (OTEX) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Open Text Corp operates as a stable business with moderate growth and solid fundamentals. Revenue reached 5.2B with 60% decline year-over-year. Profit margins are thin at 8.4%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 1050.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 279M in free cash flow and 319M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 60% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Open Text Corp push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 4.9%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 6.6B is significantly higher than cash (1.3B). Monitor refinancing risk.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Open Text Corp.
Bottom Line
Open Text Corp offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Open Text Corp(OTEX)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Open Text Corporation offers a suite of software products and services. The company is headquartered in Waterloo, Canada.