Executive Summary
Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions worldwide. More Details
Rewards
Risk Analysis
No risks detected for TNE from our risk checks.
Snowflake Analysis
Outstanding track record with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Technology One's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TNE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.0%
TNE
1.7%
AU Software
0.01%
AU Market
1 Year Return
22.2%
TNE
31.7%
AU Software
-5.7%
AU Market
Return vs Industry: TNE underperformed the Australian Software industry which returned 31.7% over the past year.
Return vs Market: TNE exceeded the Australian Market which returned -5.7% over the past year.
Shareholder returns
| TNE | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.0% | 1.7% | 0.01% |
| 30 Day | 14.2% | 13.5% | 5.4% |
| 90 Day | 4.6% | 22.2% | 4.0% |
| 1 Year | 23.9%22.2% | 32.7%31.7% | -2.4%-5.7% |
| 3 Year | 89.5%79.9% | 125.4%117.6% | 18.0%3.0% |
| 5 Year | 154.6%132.9% | 201.6%179.3% | 42.1%13.2% |
Price Volatility Vs. Market
How volatile is Technology One's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Shareholders Of Technology One (ASX:TNE) Must Be Happy With Their 149% Total Return3 weeks ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Technology One (ASX:TNE) Passed With EaseValuation
Is Technology One undervalued compared to its fair value and its price relative to the market?
47.21x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TNE (A$8.85) is trading above our estimate of fair value (A$6.19)
Significantly Below Fair Value: TNE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TNE is poor value based on its PE Ratio (47.2x) compared to the AU Software industry average (34.8x).
PE vs Market: TNE is poor value based on its PE Ratio (47.2x) compared to the Australian market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: TNE is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: TNE is overvalued based on its PB Ratio (26.7x) compared to the AU Software industry average (5.7x).
Next Steps
Future Growth
How is Technology One forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
17.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNE's forecast earnings growth (17.6% per year) is above the savings rate (2.3%).
Earnings vs Market: TNE's earnings (17.6% per year) are forecast to grow faster than the Australian market (17.5% per year).
High Growth Earnings: TNE's earnings are forecast to grow, but not significantly.
Revenue vs Market: TNE's revenue (12.1% per year) is forecast to grow faster than the Australian market (4.7% per year).
High Growth Revenue: TNE's revenue (12.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TNE's Return on Equity is forecast to be very high in 3 years time (48.1%).
Next Steps
Past Performance
How has Technology One performed over the past 5 years?
7.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNE has high quality earnings.
Growing Profit Margin: TNE's current net profit margins (20.2%) are higher than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: TNE's earnings have grown by 7.9% per year over the past 5 years.
Accelerating Growth: TNE's earnings growth over the past year (88.7%) exceeds its 5-year average (7.9% per year).
Earnings vs Industry: TNE earnings growth over the past year (88.7%) exceeded the Software industry 21%.
Return on Equity
High ROE: TNE's Return on Equity (56.5%) is considered outstanding.
Next Steps
Financial Health
How is Technology One's financial position?
Financial Position Analysis
Short Term Liabilities: TNE's short term assets (A$161.7M) do not cover its short term liabilities (A$181.8M).
Long Term Liabilities: TNE's short term assets (A$161.7M) exceed its long term liabilities (A$27.8M).
Debt to Equity History and Analysis
Debt Level: TNE is debt free.
Reducing Debt: TNE has not had any debt for past 5 years.
Debt Coverage: TNE has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TNE has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Technology One current dividend yield, its reliability and sustainability?
1.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TNE's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.14%).
High Dividend: TNE's dividend (1.38%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).
Stability and Growth of Payments
Stable Dividend: TNE's dividends per share have been stable in the past 10 years.
Growing Dividend: TNE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.5%), TNE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TNE's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Edward Chung
3.42yrs
Tenure
AU$1,605,763
Compensation
Mr. Edward James Chung, BCom, MCom, CA, FTIA, AICD, has been the Chief Executive Officer at TechnologyOne Limited since May 23, 2017 and served as its Chief Operating Officer from February 16, 2016 to May ...
CEO Compensation Analysis
Compensation vs Market: Edward's total compensation ($USD1.13M) is about average for companies of similar size in the Australian market ($USD1.30M).
Compensation vs Earnings: Edward's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | AU$1.48m | 4.38% A$ 122.1m | |
| Chief Executive Officer | 3.42yrs | AU$1.61m | 0.18% A$ 4.9m | |
| CFO & Operating Officer of Corporate Services and Company Secretary | 2yrs | AU$568.66k | no data | |
| Chief Operating Officer | 3.42yrs | AU$1.19m | no data | |
| Head of Governance | 3.5yrs | no data | no data | |
| Corporate Communications Manager | no data | no data | no data | |
| Group Director of Marketing | no data | no data | no data | |
| General Manager of Human Resources & Payroll and Business Process Automation | 8.92yrs | no data | no data | |
| Deputy CFO & Group Director of Corporate Development | 6yrs | AU$273.70k | no data | |
| Executive Secretary | no data | no data | no data | |
| Operating Officer of United Kingdom | no data | AU$520.79k | no data | |
| Local Government Sales Director | 6.17yrs | no data | no data |
4.8yrs
Average Tenure
Experienced Management: TNE's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | AU$1.48m | 4.38% A$ 122.1m | |
| Independent Non-Executive Director | 4.67yrs | AU$129.55k | 0.0096% A$ 266.7k | |
| Independent Non-Executive Director | 14.83yrs | AU$129.55k | 0.0080% A$ 222.5k | |
| Non-Executive Director | 20.83yrs | AU$129.55k | 9.69% A$ 269.7m | |
| Independent Deputy Chair | 3.17yrs | AU$129.55k | 0.022% A$ 608.1k | |
| Independent Non-Executive Director | 16.5yrs | AU$129.55k | 0.063% A$ 1.7m | |
| Independent Non-Executive Director | 1.67yrs | AU$75.57k | 0.0086% A$ 240.0k | |
| Independent Non-Executive Director | 2.42yrs | AU$129.55k | 0.0057% A$ 159.5k | |
| Independent Non-Executive Director | 0.58yr | no data | 0.0056% A$ 157.0k |
3.9yrs
Average Tenure
Experienced Board: TNE's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Technology One Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Technology One Limited
- Ticker: TNE
- Exchange: ASX
- Founded: 1987
- Industry: Application Software
- Sector: Software
- Market Cap: AU$2.784b
- Shares outstanding: 319.30m
- Website: https://www.technologyonecorp.com
Number of Employees
Location
- Technology One Limited
- TechnologyOne HQ
- Level 11
- Fortitude Valley
- Queensland
- 4006
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TNE | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
| TNE | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 1999 |
| RW8 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 1999 |
Biography
Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions worldwide. The company operates through Software, Consulting, and Cor ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 10:39 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.