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OpenText: Strong Cash Flow, Weak Market Mood

February 3, 2026

OpenText’s stock price has drifted lower over recent months and now trades near multi-year lows, catching the eye of value-focused investors. The current price reflects skepticism rather than collapse, creating an interesting setup. From a value analysis perspective, the shares look inexpensive relative to earnings, free cash flow, and long-term margins. Recent results showed modest revenue growth, stable cloud momentum, and strong profitability, with adjusted margins above thirty percent and solid free cash flow generation. Dividends have been paid regularly and have grown gradually in recent years, supported by recurring cash flows. Management is reshaping the portfolio, divesting non-core assets and prioritizing efficiency, while continuing share buybacks. The stock is down mainly due to slower top-line growth, concerns about acquisitions, integration fatigue, and investor unease around leadership transition. Investing now could appeal to those focused on cash flow, margins, and shareholder returns. On the other hand, limited growth, execution risk, and competitive pressure remain real concerns. A recovery depends on renewed revenue acceleration and sustained cash flow strength. This review is for informational and educational purposes only, not a financial advice.
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