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Open TextOTEX -2.81%83 Debt-to-Equity is 1.49 as of Jun. 2026, which is 34% above its 10-year median of 1.11. GuruFocus rates OTEX with a GF Score™ of 83/100 and a GF Value™ of $30.87 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,243 Software companies, Open Text ranks worse than 91.31% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Open Text's Debt-to-Equity or its related term are showing as below:
OTEX'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.67 Med: 1.11 Max: 2.3
Current: 1.49
During the past 13 years, the highest Debt-to-Equity Ratio of Open Text was 2.30. The lowest was 0.67. And the median was 1.11.
OTEX's Debt-to-Equity is ranked worse than 91.31% of 2243
companies
in the Software industry
Industry Median: 0.2
vs OTEX: 1.49
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Open Text Debt-to-Equity Related Terms
Open Text Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Open Text's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Open Text's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Open Text Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Open Text's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Open Text's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Open Text (OTEX) has a Debt-to-Equity of 1.49 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Open Text and its competitors. This is 34% above median its historical median of 1.11. Over the past decade, Open Text's Debt-to-Equity has ranged from 0.67 to 2.30. According to the industry distribution chart, Open Text ranks #2048 out of 2243 companies in the Software industry, placing it in the top 91.3%.
Is Open Text's Debt-to-Equity too high?
Open Text's current Debt-to-Equity of 1.49 is 34% above median its 10-year median of 1.11. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 2.30. The Software industry median Debt-to-Equity is 0.20. Open Text's value of 1.49 is 645% above this industry median. Based on the distribution chart, Open Text ranks #2048 out of 2243 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Open Text has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's Debt-to-Equity compare to QH and SHOP?
According to the Software industry distribution chart, Open Text ranks #2048 out of 2243 companies for Debt-to-Equity. This places Open Text in the lower half of its industry. The industry median Debt-to-Equity is 0.20. Open Text's value of 1.49 is 645% above this benchmark. Historically, Open Text's own Debt-to-Equity has ranged from 0.67 to 2.30 over the past decade. While the company's 10-year median is 1.11 vs. the industry median of 0.20, Open Text has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,243 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current Debt-to-Equity of 1.49 is 645% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Open Text and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Debt-to-Equity is 1.49, which is 34% above median its own 10-year median of 1.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Open Text stock overvalued right now?
Based on GuruFocus' analysis, Open Text (OTEX) is currently considered Modestly Undervalued. The stock's GF Value™ is $30.87, compared to a current price of $24.93 — trading 19.2% below its estimated fair value. The current Debt-to-Equity is 1.49, which is 34% above median its 10-year median of 1.11 and 645% above the Software industry median of 0.20. Open Text's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Open Text (OTEX), the current Debt-to-Equity is 1.49 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Open Text (OTEX) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of $24.93 is trading 19.2% below its estimated GF Value™ of $30.87.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for OTEX:
Debt-to-Equity: 1.49 (34% above median its 10-year median of 1.11)
GF Value™: $30.87 vs. price of $24.93 (19.2% below fair value)
Industry Position: 645% above the Software median (#2048 of 2243)
No single metric tells the full story. See the OTEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
83GF Score
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