Open TextMEX:OTEXN 85 Interest Coverage is 3.22 as of Mar. 2026, which is 16% below its 10-year median of 3.82. GuruFocus rates MEX:OTEXN with a GF Score™ of 85/100 and a GF Value™ of MXN1,168.28. The stock has 4 warning signs investors should review. Among 1,705 Software companies, Open Text ranks worse than 85.16% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Open Text's
Operating Income
for the
three
months ended in Mar. 2026 was MXN4,961 Mil. Open Text's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,539 Mil.
Open Text's interest coverage for the quarter that ended in Mar. 2026 was 3.22.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Open Text's Interest Coverage or its related term are showing as below:
MEX:OTEXN'
s Interest Coverage Range Over the Past 10 Years
Min: 1.79 Med: 3.82 Max: 5.28
Current: 3.17
MEX:OTEXN's Interest Coverage is ranked worse than 85.16% of 1705
companies
in the Software industry
Industry Median: 24.67
vs MEX:OTEXN: 3.17
Open Text (MEX:OTEXN) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Open Text Interest Coverage Related Terms
Open Text Interest Coverage Historical Data
* Premium members only.
The historical data trend for Open Text's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:OTEXN vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Open Text's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Open Text's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Open Text's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:OTEXN) has a Interest Coverage of 3.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Open Text and its competitors. This is 16% below median its historical median of 3.82. Over the past decade, Open Text's Interest Coverage has ranged from 1.79 to 5.28. According to the industry distribution chart, Open Text ranks #1452 out of 1705 companies in the Software industry, placing it in the top 85.2%.
Is Open Text's Interest Coverage too high?
Open Text's current Interest Coverage of 3.22 is 16% below median its 10-year median of 3.82. Over the past 10 years, this metric has ranged from a low of 1.79 to a high of 5.28. The Software industry median Interest Coverage is 24.67. Open Text's value of 3.22 is 86.9% below this industry median. Based on the distribution chart, Open Text ranks #1452 out of 1705 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Open Text has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Open Text's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, Open Text ranks #1452 out of 1705 companies for Interest Coverage. This places Open Text in the lower half of its industry. The industry median Interest Coverage is 24.67. Open Text's value of 3.22 is 86.9% below this benchmark. Historically, Open Text's own Interest Coverage has ranged from 1.79 to 5.28 over the past decade. While the company's 10-year median is 3.82 vs. the industry median of 24.67, Open Text has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current Interest Coverage of 3.22 is 86.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Open Text and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Interest Coverage is 3.22, which is 16% below median its own 10-year median of 3.82. 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?
Open Text (MEX:OTEXN) has a current Interest Coverage of 3.22. The stock's GF Value™ is MXN1,168.28, compared to a current price of MXN777.91 — trading 33.4% below its estimated fair value. The current Interest Coverage is 3.22, which is 16% below median its 10-year median of 3.82 and 86.9% below the Software industry median of 24.67. Open Text's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Open Text (MEX:OTEXN), the current Interest Coverage is 3.22 as of Mar. 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 (MEX:OTEXN) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of MXN777.91 is trading 33.4% below its estimated GF Value™ of MXN1,168.28.
Key valuation signals for MEX:OTEXN:
Interest Coverage: 3.22 (16% below median its 10-year median of 3.82)
GF Value™: MXN1,168.28 vs. price of MXN777.91 (33.4% below fair value)
Industry Position: 86.9% below the Software median (#1452 of 1705)
No single metric tells the full story. See the MEX:OTEXN 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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