Does OPEN TEXT CORP have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores OPEN TEXT CORP (OTEX) 43.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 10, balance-sheet safety 40, capital discipline 11.

Is OTEX stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $20.67 per share versus a recent price of $23.27 — 13% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has OTEX's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 43.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

OPEN TEXT CORP

OTEX · Technology · $5.9B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power100

Median gross margin 69.0% over 10y, very stable.

Returns on capital10

Median ROIC 6.4%, above the 9% hurdle in 10% of years.

Balance-sheet safety40

Net debt/EBITDA 5.8x, no material interest expense disclosed.

Capital discipline11

Owner earnings -4.8%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

13% above value

Owner earnings (normalized): $292.6M
Est. intrinsic value / share: $20.67
Recent price: $23.27
Discount to value: 13% above value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

20 years of fundamentals

The business, in plain English

OPEN TEXT CORP booked $5.2B of revenue in FY2025 in the Technology sector and kept 72.3% of it as gross profit — a high-margin business by that measure. After every other cost, 8.4% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $595.7M (FY2007) to $5.2B (FY2025) — about 12.8% a year compounded over 18 years.

It earned 8.8% on invested capital in FY2025, with a median of 8.8% across 19 filed years. The Returns on Capital filter above scores it 10/100.

The balance sheet carried $6.4B of total debt in FY2025 against $292.6M of owner earnings — roughly 21.8 years of owner earnings to retire it all. Balance-Sheet Safety scores it 40/100.

The share count rose 383.3% between FY2009 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 11/100.

Put together: Pricing Power is the strongest of the four filters (100/100) and Returns on Capital the weakest (10/100), which is how OTEX lands at 43/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$5.2B FY2025

Gross marginRevenue kept after cost of goods72.3% FY2025

Return on invested capitalOperating profit on the capital employed8.8% FY2025

Owner earningsCash an owner could take out$292.6M FY2025

Gaps in a line mean that item isn’t in OTEX’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale43.0 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — OTEX has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#278 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#276GWRE Guidewire Software, Inc.43.2 out of 100, Shallow moatShallow moat
#277U UNITY SOFTWARE INC.43.2 out of 100, Shallow moatShallow moat
#279AI C3.ai, Inc.43.0 out of 100, Shallow moatShallow moat
#280QXL QUANTUM X LABS INC.42.9 out of 100, Shallow moatShallow moat

Compare OTEX with its nearest peers →All Technology companies on the Index →

Common questions about OTEX

Does OPEN TEXT CORP have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores OPEN TEXT CORP (OTEX) 43.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 10, balance-sheet safety 40, capital discipline 11.
Is OTEX stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $20.67 per share versus a recent price of $23.27 — 13% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has OTEX's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 43.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

Embed this score on your site

One iframe, no script. The badge shows OTEX’s live Moat Score, updates itself as new filings are scored, and links back here. How it works.

<iframe
  src="https://buylikebuffett.com/embed/OTEX"
  width="340" height="150" style="border:0"
  title="OTEX Moat Score — The Moat Index"
  loading="lazy"></iframe>

Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell OTEX. See the disclaimer.