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Open Text Corporation

Technology Updated August 11, 2026
$23.96
52W $19.78 – $39.90
49/100
$5.82B
5.3
1.04
AI Committee Verdict
Watch
49/100
Conviction: Contested · 33% agreement · 6 analysts
Contested

Is OTEX Bullish or Bearish?

Mixed. Innellis AI committee rates Open Text Corporation (OTEX) Watch with a composite score of 49/100 , based on 6 analysts with 33% agreement. Last updated August 11, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +10.93 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -9.07 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case — vix regime is low -- calm backdrop supports risk-taking. Growth Analyst remains cautious — revenue declining -0.2% yoy -- this is not a growth story right now. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • P/E of 11.7 is inexpensive for the broad market — Value
  • Dividend yield of 3.9% pays you to wait — Value
  • VIX regime is low -- calm backdrop supports risk-taking — Macro
  • Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
  • Debt-to-equity of 1.62 adds balance-sheet risk to the value case — Value
  • Revenue declining -0.2% YoY -- this is not a growth story right now — Growth
  • EPS declining -16.1% YoY despite any revenue growth — Growth
  • MACD histogram negative -- bearish momentum — Technical
  • High leverage (debt-to-equity 1.62) amplifies downside in a stress scenario — Risk
  • Current ratio of 0.80 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 11, 2026
Overall Committee Score
49/100
Agreement
33%
Analysts
6
Conviction
Contested
Sector Rank
Top 98%
of 284 Technology peers
Value Analyst neutral
57 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ P/E of 11.7 is inexpensive for the broad market
− Debt-to-equity of 1.62 adds balance-sheet risk to the value case
Growth Analyst bearish
18 / 100 · Moderate confidence
Growth story is weak, decelerating, or inconsistent
− Revenue declining -0.2% YoY -- this is not a growth story right now
Technical Analyst neutral
48 / 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst bearish
33 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 1.62) amplifies downside in a stress scenario
Macro Analyst bullish
78 / 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ VIX regime is low -- calm backdrop supports risk-taking
News Analyst bullish
61 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager neutral
55 / 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 2 existing position pair(s) are highly correlated already
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Technical Analysis

RSI (14)
40.1
Neutral
MACD Histogram
-0.063
Bearish Momentum
Trend Direction
Sideways
Weekly: Downtrend
Market Structure
Mixed
Support
$22.81
Resistance
$25.64
Bollinger %B
0.46
Inside Bands
Price vs Moving Averages
EMA 9
$24.86 Below
EMA 21
$24.34 Below
EMA 50
$23.66 Above
EMA 200
$25.61 Below

Fundamental Analysis

Valuation
100
Profitability
73
Financial Health
50
Cash Flow
70
Valuation
P/E Ratio 5.3×
P/B Ratio 1.49×
PEG Ratio 0.03
Dividend Yield 4.59%
52W High $39.90
52W Low $19.78
Quality & Growth
ROE 1601.9%
ROA 490.6%
Gross Margin 7355.2%
Operating Margin 2099.1%
Revenue Growth YoY
Debt / Equity 0.06
AI Fundamental Assessment
[reduced confidence: limited earnings history] P/E ratio of 5.3 (inexpensive relative to a 15-40x range); Price-to-book of 1.5x; PEG ratio of 0.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 16.0%; Return on assets of 4.9%; Net margin of 12.4%; Gross margin of 73.6%; Current ratio of 0.81 (tight short-term liquidity); Debt-to-equity of 0.06; Free cash flow per share is positive (5.98); Earnings-history trend unavailable; growth based on TTM year-over-year only.
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