Open Text (TSX:OTEX) Quality Rank

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

TSX:OTEX Open Text Corp TSX:OTEX
85 GF Score
Price C$31.90
GF Value C$45.68
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is Open Text Quality Rank?

The Quality Rank measures the business quality of a company relative to other companies. It is ranked based on the strength of the balance sheet, as well as the profitability and growth of the business. The ranked companies are split in equal numbers and then ranked from 1 to 10, with 10 being the highest.

The rank of balance sheet (30%)

The rank of balance sheet is done through the ranking of:
  • Interest coverage
  • Zscore
  • Debt to revenue
  • Equity to asset
  • Cash to debt

The rank of Profitability (70%)

The ranking of Profitability is done by ranking:
  • Operating margin mean rank (10-year mean average profit margine)
  • Operating margin growth rank
  • Fscore
  • Predictability rank
  • Revenue growth rank (5 year), when the growth is higher than 25%, set it as 25%
  • Num of year profit (number of years that is profitable within the last 10 years)
  • ROIC median (10-year median of ROIC)

Open Text Quality Rank Related Terms

TSX:OTEX
85GF Score
Open Text Corp TSX:OTEX
Quality Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Open Text (TSX:OTEX) Overvalued in 2026?

Based on GuruFocus' analysis, Open Text stock appears to be undervalued. The current stock price of C$31.90 is trading 30.2% below its estimated GF Value™ of C$45.68. GuruFocus considers Open Text to be Possible Value Trap.

Key valuation signals for TSX:OTEX:

  • Quality Rank:
  • GF Value™: C$45.68 vs. price of C$31.90 (30.2% below fair value)
  • GF Score™: 85/100 with 4 warning signs

No single metric tells the full story. See the TSX:OTEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Open Text Business Description

Other Exchanges OTEX:USAOTX:Germany
Address 275 Frank Tompa Drive, Waterloo, ON, CAN, N2L 0A1
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

Get the complete analysis for TSX:OTEX

Quality Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$31.90
Price
C$45.68
GF Value