Open TextMEX:OTEXN 85 ROE % is 17.27% as of Mar. 2026, which is 97% above its 10-year median of 8.78. 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 2,681 Software companies, Open Text ranks better than 69.23% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Open Text's annualized net income for the quarter that ended in Mar. 2026 was MXN12,454 Mil. Open Text's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was MXN72,129 Mil. Therefore, Open Text's annualized ROE % for the quarter that ended in Mar. 2026 was 17.27%.
The historical rank and industry rank for Open Text's ROE % or its related term are showing as below:
MEX:OTEXN'
s ROE % Range Over the Past 10 Years
Min: 3.8 Med: 8.78 Max: 37.63
Current: 12.8
During the past 13 years, Open Text's highest ROE % was 37.63%. The lowest was 3.80%. And the median was 8.78%.
MEX:OTEXN's ROE % is ranked better than 69.23% of 2681
companies
in the Software industry
Industry Median: 4.71
vs MEX:OTEXN: 12.80
Open Text (MEX:OTEXN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Open Text ROE % Related Terms
Open Text ROE % Historical Data
* Premium members only.
The historical data trend for Open Text's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Open Text's ROE % distribution charts can be found below:
* The bar in red indicates where Open Text's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Open Text (MEX:OTEXN) has a ROE % of 17.27% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Open Text and its competitors. This is 97% above median its historical median of 8.78. Over the past decade, Open Text's ROE % has ranged from 3.80 to 37.63. According to the industry distribution chart, Open Text ranks #825 out of 2681 companies in the Software industry, placing it in the top 30.8%.
Is Open Text's ROE % too high?
Open Text's current ROE % of 17.27% is 97% above median its 10-year median of 8.78. Over the past 10 years, this metric has ranged from a low of 3.80 to a high of 37.63. The Software industry median ROE % is 4.71. Open Text's value of 17.27% is 266.7% above this industry median. Based on the distribution chart, Open Text ranks #825 out of 2681 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 ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Open Text ranks #825 out of 2681 companies for ROE %. This puts Open Text in the upper half of its industry. The industry median ROE % is 4.71. Open Text's value of 17.27% is 266.7% above this benchmark. Historically, Open Text's own ROE % has ranged from 3.80 to 37.63 over the past decade. While the company's 10-year median is 8.78 vs. the industry median of 4.71, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.71, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current ROE % of 17.27% is 266.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Open Text and its competitors. For the Software industry, the median ROE % is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current ROE % is 17.27%, which is 97% above median its own 10-year median of 8.78. 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 ROE % of 17.27%. 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 ROE % is 17.27%, which is 97% above median its 10-year median of 8.78 and 266.7% above the Software industry median of 4.71. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Open Text (MEX:OTEXN), the current ROE % is 17.27% 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:
ROE %: 17.27% (97% above median its 10-year median of 8.78)
GF Value™: MXN1,168.28 vs. price of MXN777.91 (33.4% below fair value)
Industry Position: 266.7% above the Software median (#825 of 2681)
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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