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Technology One

ASX:TNE
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TNE
ASX
A$3B
Market Cap
  1. Home
  2. AU
  3. Software
Company description

Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia, New Zealand, and internationally. The last earnings update was 154 days ago. More info.


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TNE Share Price and Events
7 Day Returns
-2.6%
ASX:TNE
-2.4%
AU Software
-0%
AU Market
1 Year Returns
67.2%
ASX:TNE
33.1%
AU Software
4.9%
AU Market
TNE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Technology One (TNE) -2.6% 3.7% 23.3% 67.2% 69.6% 223.3%
AU Software -2.4% -1.5% 15.5% 33.1% 83.2% 103.5%
AU Market -0% 1% 6.3% 4.9% 18.2% 4.8%
1 Year Return vs Industry and Market
  • TNE outperformed the Software industry which returned 33.1% over the past year.
  • TNE outperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
TNE
Industry
5yr Volatility vs Market
Related Companies

TNE Value

 Is Technology One undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Technology One to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Technology One.

ASX:TNE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:TNE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 30%) (0%))
1.09
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.09 * 5.96%)
8.81%

Discounted Cash Flow Calculation for ASX:TNE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Technology One is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:TNE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.81%)
2019 63.83 Analyst x3 58.67
2020 70.90 Analyst x3 59.89
2021 86.45 Analyst x2 67.11
2022 99.02 Est @ 14.54% 70.65
2023 109.78 Est @ 10.87% 71.99
2024 118.90 Est @ 8.3% 71.66
2025 126.63 Est @ 6.51% 70.14
2026 133.28 Est @ 5.25% 67.85
2027 139.10 Est @ 4.37% 65.08
2028 144.31 Est @ 3.75% 62.06
Present value of next 10 years cash flows A$665.10
ASX:TNE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$144.31 × (1 + 2.31%) ÷ (8.81% – 2.31%)
A$2,273.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$2,273.78 ÷ (1 + 8.81%)10
A$977.77
ASX:TNE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$665.10 + A$977.77
A$1,642.87
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,642.87 / 317.12
A$5.18
ASX:TNE Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.18
Current discount Discount to share price of A$8.31
= -1 x (A$8.31 - A$5.18) / A$5.18
-60.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Technology One is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Technology One's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Technology One's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:TNE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in AUD A$0.16
ASX:TNE Share Price ** ASX (2019-04-18) in AUD A$8.31
Australia Software Industry PE Ratio Median Figure of 20 Publicly-Listed Software Companies 35.57x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Technology One.

ASX:TNE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:TNE Share Price ÷ EPS (both in AUD)

= 8.31 ÷ 0.16

51.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Technology One is overvalued based on earnings compared to the AU Software industry average.
  • Technology One is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Technology One's expected growth come at a high price?
Raw Data
ASX:TNE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 51.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
14.3%per year
Australia Software Industry PEG Ratio Median Figure of 13 Publicly-Listed Software Companies 2.76x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

ASX:TNE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 51.48x ÷ 14.3%

3.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Technology One is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Technology One's assets?
Raw Data
ASX:TNE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in AUD A$0.57
ASX:TNE Share Price * ASX (2019-04-18) in AUD A$8.31
Australia Software Industry PB Ratio Median Figure of 100 Publicly-Listed Software Companies 3.54x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.67x
ASX:TNE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:TNE Share Price ÷ Book Value per Share (both in AUD)

= 8.31 ÷ 0.57

14.66x

* Primary Listing of Technology One.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Technology One is overvalued based on assets compared to the AU Software industry average.
X
Value checks
We assess Technology One's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Technology One has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TNE Future Performance

 How is Technology One expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Technology One expected to grow at an attractive rate?
  • Technology One's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Technology One's earnings growth is expected to exceed the Australia market average.
  • Technology One's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:TNE Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:TNE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 14.3%
ASX:TNE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 9.9%
Australia Software Industry Earnings Growth Rate Market Cap Weighted Average 33.5%
Australia Software Industry Revenue Growth Rate Market Cap Weighted Average 17.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:TNE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:TNE Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 401 92 79 6
2020-09-30 364 78 68 7
2019-09-30 326 68 59 7
ASX:TNE Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-09-30 299 49 51
2018-06-30 289 41 48
2018-03-31 280 33 45
2017-12-31 276 40 45
2017-09-30 273 46 44
2017-06-30 268 48 43
2017-03-31 262 50 42
2016-12-31 256 47 42
2016-09-30 249 44 41
2016-06-30 239 40 38
2016-03-31 230 37 34
2015-12-31 224 37 35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Technology One's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
  • Technology One's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:TNE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Technology One Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TNE Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 0.25 0.26 0.23 6.00
2020-09-30 0.22 0.23 0.20 7.00
2019-09-30 0.19 0.19 0.18 7.00
ASX:TNE Past Financials Data
Date (Data in AUD Millions) EPS *
2018-09-30 0.16
2018-06-30 0.15
2018-03-31 0.14
2017-12-31 0.14
2017-09-30 0.14
2017-06-30 0.14
2017-03-31 0.13
2016-12-31 0.13
2016-09-30 0.13
2016-06-30 0.12
2016-03-31 0.11
2015-12-31 0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Technology One is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Technology One's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Technology One has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TNE Past Performance

  How has Technology One performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Technology One's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Technology One's year on year earnings growth rate has been positive over the past 5 years.
  • Technology One's 1-year earnings growth exceeds its 5-year average (14.6% vs 12.5%)
  • Technology One's earnings growth has exceeded the AU Software industry average in the past year (14.6% vs 7.7%).
Earnings and Revenue History
Technology One's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Technology One Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TNE Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 298.65 50.98 44.54
2018-06-30 289.16 47.77 43.27
2018-03-31 279.67 44.55 42.00
2017-12-31 276.46 44.52 41.99
2017-09-30 273.25 44.49 41.97
2017-06-30 267.62 43.27 41.10
2017-03-31 262.00 42.05 40.24
2016-12-31 255.51 41.70 38.22
2016-09-30 249.02 41.34 36.21
2016-06-30 239.35 37.81 36.39
2016-03-31 229.69 34.28 36.58
2015-12-31 224.20 35.03 34.76
2015-09-30 218.72 35.79 32.95
2015-06-30 208.14 32.88 31.24
2015-03-31 197.55 29.97 29.52
2014-12-31 196.34 30.47 29.51
2014-09-30 195.12 30.97 29.49
2014-06-30 191.78 29.57 28.97
2014-03-31 188.44 28.17 28.45
2013-12-31 184.52 27.57 27.80
2013-09-30 180.59 26.98 27.16
2013-06-30 176.06 25.90 26.35
2013-03-31 171.53 24.81 25.53
2012-12-31 170.30 24.18 25.14
2012-09-30 169.07 23.56 24.76
2012-06-30 165.73 21.98 24.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Technology One has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Technology One used its assets more efficiently than the AU Software industry average last year based on Return on Assets.
  • Technology One has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Technology One's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Technology One has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TNE Health

 How is Technology One's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Technology One's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Technology One is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Technology One's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Technology One's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 39403.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Technology One Company Filings, last reported 6 months ago.

ASX:TNE Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 179.52 0.01 104.32
2018-06-30 179.52 0.01 104.32
2018-03-31 143.58 0.01 57.53
2017-12-31 143.58 0.01 57.53
2017-09-30 157.52 0.01 93.38
2017-06-30 157.52 0.01 93.38
2017-03-31 124.65 0.00 57.46
2016-12-31 124.65 0.00 57.46
2016-09-30 138.49 0.03 82.59
2016-06-30 138.49 0.03 82.59
2016-03-31 107.02 0.48 45.42
2015-12-31 107.02 0.48 45.42
2015-09-30 117.94 2.39 75.54
2015-06-30 117.94 2.39 75.54
2015-03-31 98.69 2.93 51.70
2014-12-31 98.69 2.93 51.70
2014-09-30 104.50 3.61 80.21
2014-06-30 104.50 3.61 80.21
2014-03-31 86.90 4.49 54.00
2013-12-31 86.90 4.49 54.00
2013-09-30 87.74 5.37 65.40
2013-06-30 87.74 5.37 65.40
2013-03-31 72.42 6.36 50.25
2012-12-31 72.42 6.36 50.25
2012-09-30 74.00 7.34 51.13
2012-06-30 74.00 7.34 51.13
  • Technology One's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (6.1% vs 0% today).
  • Debt is well covered by operating cash flow (971920%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 169.4x coverage).
X
Financial health checks
We assess Technology One's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Technology One has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TNE Dividends

 What is Technology One's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.34%
Current annual income from Technology One dividends. Estimated to be 1.66% next year.
If you bought A$2,000 of Technology One shares you are expected to receive A$27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Technology One's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
  • Technology One's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:TNE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Australia Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:TNE Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.16 6.00
2020-09-30 0.14 7.00
2019-09-30 0.12 7.00
ASX:TNE Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-11-19 0.111 1.599
2018-05-21 0.105 2.101
2017-11-20 0.102 2.035
2017-05-22 0.097 1.837
2016-11-21 0.095 1.774
2016-05-23 0.090 1.621
2015-11-25 0.088 1.869
2014-11-24 0.062 1.688
2013-11-25 0.056 2.115
2012-11-26 0.051 2.855
2011-11-21 0.061 5.229
2011-05-23 0.043 4.033
2010-11-22 0.042 4.297
2010-05-24 0.042 4.776
2010-01-11 0.038 4.809
2009-11-23 0.038 4.641
2009-05-25 0.033 4.008
2009-04-23 0.041 5.664

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Technology One is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • Technology One is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Technology One's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Technology One's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Technology One's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Technology One afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Technology One has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TNE Management

 What is the CEO of Technology One's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Edward Chung
COMPENSATION A$1,396,604
TENURE AS CEO 1.9 years
CEO Bio

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 23, 2017 and served as its Operating Officer of Products and Solutions at TechnologyOne Limited since October 07, 2014 until February 16, 2016 and served as its Operating Officer of Corporate Services since November 2007 until October 07, 2014. Mr. Chung served as the Chief Financial Officer of Queensland Rail, leading a finance team of approximately 300 staff where he was responsible for the areas of accounting, tax and treasury functions, as well as strategy and merger and acquisition activity. Mr. Chung's experience spans corporate law, audit, senior finance and commercial roles in both the public and private sector. He served as an Executive Director of TechnologyOne Limited from May 14, 2008 to August 10, 2015. Mr. Chung is a Chartered Accountant, Fellow of the Tax Institute of Australia and an Associate Member of the Australian Institute of Company Directors.

CEO Compensation
  • Edward's compensation has increased by more than 20% in the past year.
  • Edward's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Technology One management team in years:

2
Average Tenure
  • The tenure for the Technology One management team is about average.
Management Team

Adrian Di Marco

TITLE
Founder
COMPENSATION
A$1M
TENURE
32.3 yrs

Edward Chung

TITLE
Chief Executive Officer
COMPENSATION
A$1M
TENURE
1.9 yrs

Stuart MacDonald

TITLE
Chief Operating Officer
COMPENSATION
A$1M
TENURE
1.9 yrs

Paul Jobbins

TITLE
CFO & Operating Officer of Corporate Services
TENURE
0.5 yrs

Stephen Kennedy

TITLE
Head of Compliance & Risk and Group Company Secretary
TENURE
2 yrs

Lisa Watson

TITLE
Corporate Communications Manager

Paul MacRae

TITLE
General Manager of Human Resources & Payroll and Business Process Automation
TENURE
7.4 yrs

Gareth Pye

TITLE
Acting Operating Officer of Corporate Services & Deputy CFO
COMPENSATION
A$274K
TENURE
4.5 yrs

Michelle Reid

TITLE
Executive Secretary

Roger Phare

TITLE
Operating Officer of United Kingdom
COMPENSATION
A$521K
Board of Directors Tenure

Average tenure of the Technology One board of directors in years:

3.2
Average Tenure
  • The tenure for the Technology One board of directors is about average.
Board of Directors

Adrian Di Marco

TITLE
Founder
COMPENSATION
A$1M

Ron McLean

TITLE
Deputy Chair
COMPENSATION
A$128K
TENURE
1.7 yrs

Kevin Blinco

TITLE
Independent Non-Executive Director
COMPENSATION
A$128K
TENURE
15 yrs

Richard Anstey

TITLE
Independent Non-Executive Director
COMPENSATION
A$128K
TENURE
13.3 yrs

John MacTaggart

TITLE
Non-Executive Director
COMPENSATION
A$128K
TENURE
19.3 yrs

Jane Andrews

TITLE
Independent Non-Executive Director
COMPENSATION
A$128K
TENURE
3.2 yrs

Sharon Doyle

TITLE
Independent Non-Executive Director
COMPENSATION
A$75K
TENURE
0.9 yrs

Cliff Rosenberg

TITLE
Independent Non-Executive Director
AGE
54
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
31. Jan 19 Buy First State Super Financial Services Pty Ltd., Asset Management Arm Company 22. Sep 18 22. Jan 19 68,552 A$6.22 A$426,279
31. Jan 19 Buy Fss Trustee Corporation, Asset Management Arm Company 22. Sep 18 22. Jan 19 2,914,573 A$6.49 A$18,907,905
27. Nov 18 Sell Pinnacle Investment Management Limited Company 12. Sep 18 22. Nov 18 -5,864,343 A$5.66 A$-33,014,997
27. Nov 18 Buy Pinnacle Investment Management Limited Company 22. Oct 18 19. Nov 18 1,245,905 A$5.57 A$6,934,704
27. Nov 18 Sell John MacTaggart Individual 26. Nov 18 26. Nov 18 -4,000,000 A$5.55 A$-22,199,998
22. Nov 18 Sell Hyperion Asset Management Limited Company 21. Aug 18 20. Nov 18 -4,506,381 A$5.77 A$-25,183,709
22. Nov 18 Buy Hyperion Asset Management Limited Company 21. Aug 18 20. Nov 18 1,245,905 A$5.60 A$6,978,681
05. Sep 18 Buy First State Super Financial Services Pty Ltd., Asset Management Arm Company 01. Nov 17 31. Aug 18 13,722 A$5.00 A$68,610
05. Sep 18 Sell Fss Trustee Corporation, Asset Management Arm Company 01. Nov 17 31. Aug 18 -5,021,028 A$4.94 A$-24,786,794
05. Sep 18 Buy Fss Trustee Corporation, Asset Management Arm Company 01. Nov 17 31. Aug 18 4,963,083 A$5.02 A$24,928,005
27. Aug 18 Sell Pinnacle Investment Management Limited Company 26. Mar 18 22. Aug 18 -8,919,226 A$4.33 A$-38,630,837
27. Aug 18 Buy Pinnacle Investment Management Limited Company 22. May 18 17. Jul 18 4,701,877 A$4.44 A$20,893,151
22. Aug 18 Sell Hyperion Asset Management Limited Company 11. Jul 18 20. Aug 18 -3,272,433 A$5.03 A$-16,157,176
12. Jul 18 Sell Hyperion Asset Management Limited Company 14. Mar 17 10. Jul 18 -5,447,134 A$5.23 A$-27,791,425
12. Jul 18 Buy Hyperion Asset Management Limited Company 14. Mar 17 10. Jul 18 2,509,001 A$4.91 A$12,262,590
05. Jun 18 Buy Jane Andrews Individual 05. Jun 18 05. Jun 18 2,300 A$4.33 A$9,956
30. May 18 Buy Jane Andrews Individual 29. May 18 29. May 18 2,300 A$4.43 A$10,196
X
Management checks
We assess Technology One's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Technology One has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TNE News

Simply Wall St News

Can Technology One Limited (ASX:TNE) Maintain Its Strong Returns?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Technology One has a return on equity of 28% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Technology One Limited (ASX:TNE) Is An Attractive Investment To Consider

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

How Much Are Technology One Limited (ASX:TNE) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Technology One Limited (ASX:TNE). … That means that even when the share price was below the current price of AU$7.96, an insider wanted to cash in some shares. … John MacTaggart was the only individual insider to sell shares in the last twelve months

Simply Wall St -

Zooming in on ASX:TNE's 1.4% Dividend Yield

Historically, Technology One Limited (ASX:TNE) has paid a dividend to shareholders. … Let's take a look at Technology One in more detail. … View our latest analysis for Technology One

Simply Wall St -

Technology One Limited (ASX:TNE): What Does The Future Look Like?

Looking at Technology One Limited's (ASX:TNE) earnings update in September 2018,. … it seems that analyst forecasts are fairly optimistic, … the past 5-year average growth rate of 12%

Simply Wall St -

Could The Technology One Limited (ASX:TNE) Ownership Structure Tell Us Something Useful?

If you want to know who really controls Technology One Limited (ASX:TNE), then you'll have to look at the makeup of its share registry. … Taking a look at our data on the ownership groups (below), it's seems that. … Let's take a closer look to see what the different types of shareholder can tell us about TNE

Simply Wall St -

Is Technology One Limited's (ASX:TNE) High P/E Ratio A Problem For Investors?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Technology One Limited's (ASX:TNE) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Did Technology One Limited's (ASX:TNE) Recent Earnings Growth Beat The Trend?

It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. … Today I will assess TNE's latest performance announced on 30 September 2018 and compare these figures to its longer term trend and industry movements. … TNE's trailing twelve-month earnings (from 30 September 2018) of AU$51m has.

Simply Wall St -

Why Technology One Limited’s (ASX:TNE) Cash Is A Factor You Need To Consider

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I’ve analysed below, the health and outlook of Technology One’s cash flow, which will help you understand the stock from a cash standpoint. … Technology One generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating

Simply Wall St -

Technology One Limited (ASX:TNE): What's The Analyst Consensus Outlook?

The latest earnings update Technology One Limited (ASX:TNE) released in September 2018a … showed

Simply Wall St -

TNE Company Info

Description

Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions in Australia, New Zealand, and internationally. It operates through Sales and Marketing, Consulting, Research & Development, and Cloud segments. The company offers various business solutions, including enterprise asset management, financials, human resource and payroll, enterprise budgeting, supply chain, property and rating, student management, business intelligence, enterprise content management, performance planning, spatial, enterprise cash receipting, stakeholder management, and business process management. It also provides consulting and custom software development services for large scale and purpose built applications; and cloud hosting services. The company serves local government, education, government, asset intensive, project intensive, health and community services, and financial services industries, as well as corporates. Technology One Limited was founded in 1987 and is headquartered in Fortitude Valley, Australia.

Details
Name: Technology One Limited
TNE
Exchange: ASX
Founded: 1987
A$2,635,266,169
317,119,876
Website: http://www.technologyonecorp.com
Address: Technology One Limited
TechnologyOne HQ,
Level 11,
Fortitude Valley,
Queensland, 4006,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TNE Ordinary Shares Australian Securities Exchange AU AUD 08. Dec 1999
DB RW8 Ordinary Shares Deutsche Boerse AG DE EUR 08. Dec 1999
CHIA TNE Ordinary Shares Chi-X Australia AU AUD 08. Dec 1999
Number of employees
Current staff
Staff numbers
848
Technology One employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 10:31
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2018/11/19
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.