OPEN TEXT CORP (OTEX)
Services-Computer Integrated Systems Design · Services-Computer Integrated Systems Design · NASDAQ
$24.49
+1.32%
Investingg Score
54.7 / 100
Hold
Business overview
- Gross margin stands at 73.7%
- Operating margin is 20.6%
- Free cash flow margin is recorded at 15.4%
These margins demonstrate a strong ability to turn revenue into profit and cash, highlighting a solid underlying business model.
Financial health
- Balance sheet pillar score is 29 out of 100
- Risk pillar score is 100 out of 100
While risk metrics score favorably, the weak balance sheet score highlights underlying financial vulnerabilities that warrant caution.
- Gross Margin
- 73.7%
- Operating Margin
- 20.6%
- Current Ratio
- 0.8x
- Debt / Equity
- 1.43
- Free Cash Flow (TTM)
- $0.8B
- Interest Coverage
- 3x
Valuation
- P/E ratio is 10.22
- Forward P/E ratio is 5.76
- P/S ratio is 1.15
- Free cash flow yield is 13.6%
These attractive valuation multiples and high cash flow yield indicate that the stock may be priced favorably relative to its earnings.
- P/E (TTM)
- 10.2x
- Forward P/E
- 5.8x
- Price / Sales
- 1.1x
- EV / EBITDA
- Data unavailable
- FCF Yield
- 13.6%
Key risks
- Slow revenue growth of 1.5% year-over-year limits top-line expansion.
- Weak balance sheet score of 29 points to potential underlying financial strain.
- Sideways technical trend and price below the 200-day moving average indicate a lack of upward momentum.
Market cap $5.9B · data as of 2026-08-19
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Analyze OTEX with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.