Open TextMEX:OTEXN 85 Pretax Margin % is 16.14% as of Mar. 2026, which is 22% above its 10-year median of 13.18. 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 2,823 Software companies, Open Text ranks better than 73.96% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Open Text's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN3,733 Mil. Open Text's Revenue for the
three
months ended in Mar. 2026 was MXN23,127 Mil. Therefore, Open Text's pretax margin for the quarter that ended in Mar. 2026 was 16.14%.
The historical rank and industry rank for Open Text's Pretax Margin % or its related term are showing as below:
MEX:OTEXN'
s Pretax Margin % Range Over the Past 10 Years
Min: 4.93 Med: 13.18 Max: 19.22
Current: 11.92
MEX:OTEXN's Pretax Margin % is ranked better than 73.96% of 2823
companies
in the Software industry
Industry Median: 3.53
vs MEX:OTEXN: 11.92
Open Text (MEX:OTEXN) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Open Text Pretax Margin % Related Terms
Open Text Pretax Margin % Historical Data
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The historical data trend for Open Text's Pretax 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.
MEX:OTEXN vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, Open Text's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Open Text's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Open Text's Pretax 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 (MEX:OTEXN) has a Pretax Margin % of 16.14% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Open Text and its competitors. This is 22% above median its historical median of 13.18. Over the past decade, Open Text's Pretax Margin % has ranged from 4.93 to 19.22. According to the industry distribution chart, Open Text ranks #735 out of 2823 companies in the Software industry, placing it in the top 26%.
Is Open Text's Pretax Margin % too high?
Open Text's current Pretax Margin % of 16.14% is 22% above median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 4.93 to a high of 19.22. The Software industry median Pretax Margin % is 3.53. Open Text's value of 16.14% is 357.2% above this industry median. Based on the distribution chart, Open Text ranks #735 out of 2823 companies in the Software industry, which is above the industry midpoint. 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 Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Open Text ranks #735 out of 2823 companies for Pretax Margin %. This puts Open Text in the upper half of its industry. The industry median Pretax Margin % is 3.53. Open Text's value of 16.14% is 357.2% above this benchmark. Historically, Open Text's own Pretax Margin % has ranged from 4.93 to 19.22 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 3.53, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current Pretax Margin % of 16.14% is 357.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Open Text and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Pretax Margin % is 16.14%, which is 22% above median its own 10-year median of 13.18. 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 Pretax Margin % of 16.14%. 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 Pretax Margin % is 16.14%, which is 22% above median its 10-year median of 13.18 and 357.2% above the Software industry median of 3.53. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Open Text (MEX:OTEXN), the current Pretax Margin % is 16.14% 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:
Pretax Margin %: 16.14% (22% above median its 10-year median of 13.18)
GF Value™: MXN1,168.28 vs. price of MXN777.91 (33.4% below fair value)
Industry Position: 357.2% above the Software median (#735 of 2823)
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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