TSE:OTEX

Open Text (OTEX.TO)

34.64
+1.28 (3.84%)
as of Aug 13, 2026, 8:00:00 pm Market Open.
500 watching
0
Investor Insights
star iconAug 13, 2026, 12:00 am

This summary was created by AI, based on 22 opinions in the last 12 months.

Open Text (OTEX) is experiencing significant investor skepticism due to various factors, primarily associated with the impact of artificial intelligence (AI) on traditional software models. While some analysts see potential value in the company's low price-to-earnings (PE) ratio of 5.2x and a 4% dividend yield, others express concern over the lack of organic growth and the failure of acquisitions to boost operational performance. The stock is currently positioned below important resistance at $35, and many recommendations suggest either waiting for better entry points or looking to invest elsewhere. The recent management changes add to uncertainties about its direction, leading experts to recommend caution with investments in Open Text. Overall, the sentiment remains mixed, reflecting both potential for recovery and significant risks ahead.

consensus icon
Consensus
Negative
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Valuation
Undervalued
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Similar
CRM
TOP PICK
Enterprise content management. Cheap. Blew away earnings last week. Could get bought out at some point. Levered very well into corporate spending. Have some great partnerships including IBM (IBM-N), Oracle (ORCL-Q) and SAP (SAP-N). Valuation is about 10X earnings, which is relatively cheap. Could easily trade act $70-$80.
DON'T BUY
Software solutions. Well run but doesn’t have a great growth trajectory and doesn’t pay dividends.
PAST TOP PICK
(Top Pick Mar 5/10, Up 12.85%) A valuable asset. Eventually a big US player comes along and buys it.
PAST TOP PICK
(A Top Pick March 5/10. Up 11.55%.) Still a Buy.
PAST TOP PICK
(A Top Pick Dec 23/09. Up 6.62%.) Struggling a little bit in their European operations because of currency problems but still likes.
PAST TOP PICK
(A Top Pick Sept 8/09. Up 21.79%.)
BUY
Technically it is coming out of a multi-year base that he thinks is supportive of higher prices. Likes technology and software as a theme. Have some very attractive assets.
HOLD
Very attractive, one-of-a-kind. About the only great, world-leading independent left in their software area.
COMMENT
Gapped higher in February and then stayed up. History shows that when this happens, it may lead to an “island gap” but also you could have a “breakaway gap”. You want to make sure it does not break support at $47.80.
TOP PICK
Been a controversial name in the past. Benefiting from the growth of data and Emails within corporations. Solid balance sheet. Could be a takeover candidate.
TOP PICK
Companies are investing in their IT infrastructure. There is an explosion in electronic content. They get 85% of revenue from service fees and licensing. Generate a ton of cash. Ultimately they could be a pretty tasty acquisition target.
TOP PICK
Have $250 million+ in cash and growing at 47% a year. Just destroyed their guidance. Trading at only 11X earnings. Licensing revenue is strong.
TOP PICK
Consolidation going on in software and this company is well positioned. Their acquisitions are adding to their existing base pretty well. Compliance software is a growth area that everybody has to have. 11X forward earnings. Generating cash and have lots of cash on the balance sheet.
TOP PICK
This is now the big dog in software. They could get bought out. They are growing and delivering results. Document management is still important for compliance. Open Text is still a key player in this area. Balance sheet in great shape.
PAST TOP PICK
(A Top Pick June 13/08. Up 18.4%.) Sold his holdings for a profit. If it were to pull back in the low $30's he would consider it again.
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