Open Text Corporation designs, develops, markets, and sells information management software and solutions in North, Central, and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China.
FAIL · Does not pass the screen
23.06 USD
At the last full screen 2026-09-11
Screened 2026-09-11 · the tape above runs as of 22:12 UTC · 11 Sep · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its distribution label.
Open Text Corporation holds its Distribution at $23.06. Consolidating, no directional conviction, held for 63 days.
As held on the ledger · 2026-09-11
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 63 days
Price at the screen
$23.06
Valuation
8.94 trailing · 5.41 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.03
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
48.23%
Below 33%
Interest-bearing debt is 48.2% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.33%
Below 33%
Cash held in interest-bearing accounts and securities is 0.3% of assets, under the one-third limit.
Pass
Receivables
13.19%
Below 49%
Money owed to the company is 13.2% of assets, under the 49% limit.
Pass
Revenue purity
0.96%
Below 5%
Only 1.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-11 screen. The gold marker is the market price at the same screen. A 43.1% margin of safety to the base estimate.
Third-party analyst targets: 11 covering, consensus Hold. The average target sits +17% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-11 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Stale software business at a low price but no spark
Picture a company still selling filing cabinets in the era of cloud drives. Open Text sells information management tools across dozens of countries yet shows almost no momentum, with revenue edging up just 2% and margins stuck at 10%. The forward multiple of 5.2 times earnings looks cheap next to our fair value of 33.75 dollars, yet analysts see little upside and rate it with no consensus conviction at all.
We pass because the business lacks visible growth drivers or a clear moat. Return on equity sits at a modest 13% and the ethical screen raises no flags, but low single-digit expansion in a competitive software space rarely rewards patient capital. The 45% margin of safety on paper does not offset the absence of any real operating lift.
Risks centre on prolonged stagnation and execution drift in a market that rewards faster innovation. Currency moves across its global footprint add another layer of uncertainty that could erode even the thin growth on offer. Analysis, not advice.
The risks · The things to watch: its business and earnings are exposed to Canada and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
OTEX trades on Nasdaq (the company is based in Canada). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 5.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 22%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (11 analysts) rates it hold, with a mean price target of $29.
2026-08-08Markup$25.66+15.4%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 15.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 22%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (11 analysts) rates it hold, with a mean price target of $29.
2026-07-18Markup$22.23+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 22%. Our forward projection puts the odds of a 10% gain over the next month near 17%. The street (11 analysts) rates it hold, with a mean price target of $29.
2026-07-03Markup$22.23+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Markup$22.23Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
