Valuation remains strong (avg 95/100), but business quality is pulling the composite down (avg 60/100).
Broad-market heuristics · Not a buy/sell signal
Valuation and growth
Valuation
Growth
Under 20x, reasonable relative to earnings
Under 20x cash flow, well covered
5–10% CAGR, steady but not exceptional
5–10% CAGR, steady but not exceptional
Business Quality & Capital Allocation
Shrinking >2%, active buybacks
Expanded 3+pp, strong improvement
Net debt/FCF of 6.2x, high leverage
8–10%, clearing the bar
Open Text (OTEX) quality: score, margins and returns
Open Text (OTEX) scores 74/100 on Intrinsiqq's quality score (a solid business), a weighted blend of 8 metrics each scored 0 to 100, on 20.6% operating margins and 8.4% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.
Frequently asked
Is Open Text (OTEX) a high-quality business?+
Open Text scores 74 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a solid business on these measures. Recent figures include a 20.6% operating margin and a 8.4% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.
What does Open Text's quality score measure?+
Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from OTEX's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Open Text scores well and where it falls behind.
What is Open Text's return on invested capital (ROIC)?+
Open Text earns about 8.4% on its invested capital, which is modest. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to OTEX's margins and growth on this scorecard to judge durability.
How profitable is Open Text?+
Open Text runs an operating margin of about 20.6% and a net margin of about 12.3%. Revenue has grown at roughly 9.2% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.
SourceQuality score computed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 8 Aug 2026. How this is calculated.
Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.
Peers
Services-Computer Integrated Systems Design · Pick stocks to compare with OTEX
Held by ETFs
OTEX is in 57 US ETFs. The largest of them, with OTEX's weight in each:
Vanguard FTSE Developed Markets ETFVEA0.02%of the fund
Schwab International Equity ETFSCHF0.02%of the fund
State Street SPDR Portfolio Developed World ex-US ETFSPDW0.02%of the fund
iShares Core MSCI International Developed Markets ETFIDEV0.02%of the fund
Schwab Fundamental International Equity ETFFNDF0.05%of the fund
Vanguard International High Dividend Yield ETFVYMI0.03%of the fund
Spot a number that looks wrong? Check it in OTEX's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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