OTEX Open Text

Open Text (OTEX) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 8.17%, WACC is 7.51%, and the economic spread is 0.66%. On balance, the company marginally exceed their cost of capital, suggesting modest but present value creation. Supporting metrics show ROE at 10.63% and ROA at 4.03%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Multiple analysis puts the company at trailing P/E of 13.62, forward P/E of 5.39, PEG of 0.80. Trailing P/E sits modestly above forward P/E, a spread that is consistent with steady earnings progress and limited near-term re-rating potential. Growth-adjusted, the company looks reasonably valued — the PEG ratio implies the market is not extrapolating the growth narrative aggressively. At 0.94, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

On the margin front: gross margin sits at 74.46%, operating margin at 20.63%, and free cash flow margin at 16.96%. At this gross margin level, the company demonstrates significant pricing power and production efficiency. Operating margins sit in a healthy range — not exceptional, but indicating reasonable operational efficiency. Strong free cash flow margins point to businesses with meaningful financial flexibility and limited dependence on external capital. This margin set supports the view that earnings quality is high and cash generation is not merely accounting-driven.

On the forward picture: TTM revenue growth of -4.30% reflecting a challenging top-line environment for the company. Consensus EPS estimates point to 152.6% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. Analyst price targets suggest street expectations point to meaningful upside if execution holds on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the company can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Across the metrics reviewed, the evidence is consistently constructive — quality, growth, and valuation are pulling in the same direction.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.