OTEX · NASDAQ · STOCK
Open Text (OTEX) Stock Analysis
$25.39
52W $19.77 – $39.90
59/100
$6.05B
5.5
1.02
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is OTEX Bullish or Bearish?
Bullish.
Innellis AI committee rates Open Text Corporation (OTEX) Buy with a composite score of 59/100
, based on 6 analysts with 50% agreement.
Last updated October 14, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +15.56 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -4.44 from today. The band boundary is 60.0, 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. Value Analyst sees a compelling case — p/e of 8.9 is inexpensive for the broad market. Risk Analyst remains cautious — current ratio of 0.81 is tight -- limited short-term liquidity cushion. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 8.9 is inexpensive for the broad market — Value
- Price-to-book of 1.3x is a discount to asset value — Value
- ROE of 16.1% shows genuine earnings power backing the valuation — Value
- Dividend yield of 2.6% pays you to wait — Value
- EPS growing 56.6% YoY — Growth
- 4 consecutive earnings beats -- consistent execution — Growth
Bear Case
- RSI at 84 is in overbought territory — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
- Current ratio of 0.81 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 October 14, 2026
Overall Committee Score
59/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 44%
of 287 Technology peers
Value Analyst
bullish
78
/ 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 8.9 is inexpensive for the broad market
Growth Analyst
bullish
72
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 56.6% YoY
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− RSI at 84 is in overbought territory
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Current ratio of 0.81 is tight -- limited short-term liquidity cushion
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
58
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
35
/ 100 · Low confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− 2 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 61.9 to 59.4.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- Macro Analyst: score 80->65 (-15).
- Portfolio Manager: score 30->35 (+5).
- Technical Analyst: +1 bearish signal(s).
Comparing 2026-10-13 to 2026-10-14 (1 day apart).
Technical Analysis
RSI (14)
84.0
Overbought
MACD Histogram
0.326
Bullish Momentum
Trend Direction
Sideways
Weekly: Downtrend
Market Structure
Lh Ll
Support
$22.81
Resistance
$25.64
Bollinger %B
1.07
Above Upper Band
Price vs Moving Averages
EMA 9
$23.84
Above
EMA 21
$23.45
Above
EMA 50
$23.49
Above
EMA 200
$24.87
Above
Fundamental Analysis
Valuation
100
Growth
93
Profitability
73
Financial Health
26
Cash Flow
70
Valuation
P/E Ratio
5.5×
P/B Ratio
1.55×
PEG Ratio
0.03
Dividend Yield
4.43%
52W High
$39.90
52W Low
$19.77
Quality & Growth
ROE
1601.9%
ROA
490.6%
Gross Margin
7355.2%
Operating Margin
2099.1%
Revenue Growth YoY
—
Debt / Equity
1.49
AI Fundamental Assessment
P/E ratio of 5.5 (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 1.49; Free cash flow per share is positive (5.98); Most recent quarter beat estimates by 14.5%; 4 consecutive earnings beats; EPS growth accelerating (-10.6% -> +21.8% QoQ); Analyst estimates rising over recent quarters
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