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Open TextOTEX -2.81%85 FCF Margin % is 9.04% as of Jun. 2026, which is 51% below its 10-year median of 18.58. GuruFocus rates OTEX with a GF Score™ of 85/100 and a GF Value™ of $30.87 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,819 Software companies, Open Text ranks better than 80.35% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Open Text's Free Cash Flow for the
three
months ended in Jun. 2026 was $122 Mil. Open Text's Revenue for the
three
months ended in Jun. 2026 was $1,349 Mil. Therefore, Open Text's FCF Margin % for the quarter that ended in Jun. 2026 was 9.04%.
The historical data trend for Open Text's FCF Margin % 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 FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Software Industry
For the Software industry and Technology sector, Open Text's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Open Text's FCF Margin % 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 FCF Margin % of 9.04% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Open Text and its competitors. This is 51% below median its historical median of 18.58. Over the past decade, Open Text's FCF Margin % has ranged from 13.30 to 28.36. According to the industry distribution chart, Open Text ranks #554 out of 2819 companies in the Software industry, placing it in the top 19.7%.
Is Open Text's FCF Margin % too high?
Open Text's current FCF Margin % of 9.04% is 51% below median its 10-year median of 18.58. Over the past 10 years, this metric has ranged from a low of 13.30 to a high of 28.36. The Software industry median FCF Margin % is 2.37. Open Text's value of 9.04% is 281.4% above this industry median. Based on the distribution chart, Open Text ranks #554 out of 2819 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Open Text has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's FCF Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Open Text ranks #554 out of 2819 companies for FCF Margin %. This places Open Text in the top 20% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.37. Open Text's value of 9.04% is 281.4% above this benchmark. Historically, Open Text's own FCF Margin % has ranged from 13.30 to 28.36 over the past decade. While the company's 10-year median is 18.58 vs. the industry median of 2.37, 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 FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.37, based on 2,819 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current FCF Margin % of 9.04% is 281.4% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Open Text and its competitors. For the Software industry, the median FCF Margin % is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current FCF Margin % is 9.04%, which is 51% below median its own 10-year median of 18.58. 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 FCF Margin % is 9.04%, which is 51% below median its 10-year median of 18.58 and 281.4% above the Software industry median of 2.37. Open Text's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Open Text (OTEX), the current FCF Margin % is 9.04% 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:
FCF Margin %: 9.04% (51% below median its 10-year median of 18.58)
GF Value™: $30.87 vs. price of $24.93 (19.2% below fair value)
Industry Position: 281.4% above the Software median (#554 of 2819)
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.
85GF Score
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FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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