Executive Summary
Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TNE's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-0.8%
TNE
3.5%
AU Software
-0.01%
AU Market
1 Year Return
49.2%
TNE
45.6%
AU Software
27.1%
AU Market
Return vs Industry: TNE exceeded the Australian Software industry which returned 45.6% over the past year.
Return vs Market: TNE exceeded the Australian Market which returned 27% over the past year.
Shareholder returns
| TNE | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 3.5% | -0.01% |
| 30 Day | 18.8% | 10.5% | -0.5% |
| 90 Day | 29.2% | 17.3% | 0.8% |
| 1 Year | 51.4%49.2% | 46.6%45.6% | 32.4%27.1% |
| 3 Year | 126.6%116.4% | 110.4%104.9% | 35.9%19.3% |
| 5 Year | 114.3%96.9% | 265.4%241.8% | 65.3%32.7% |
Long-Term 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
2 weeks ago | Simply Wall St
Are Strong Financial Prospects The Force That Is Driving The Momentum In Technology One Limited's ASX:TNE) Stock?1 month ago | Simply Wall St
Could The Technology One Limited (ASX:TNE) Ownership Structure Tell Us Something Useful?2 months ago | Simply Wall St
Estimating The Fair Value Of Technology One Limited (ASX:TNE)Valuation
Is Technology One undervalued compared to its fair value and its price relative to the market?
51.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TNE (A$11.58) is trading above our estimate of fair value (A$10.58)
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 (51.7x) compared to the Australian Software industry average (45.6x).
PE vs Market: TNE is poor value based on its PE Ratio (51.7x) compared to the Australian market (18.7x).
Price to Earnings Growth Ratio
PEG Ratio: TNE is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: TNE is overvalued based on its PB Ratio (24.2x) compared to the AU Software industry average (4.9x).
Future Growth
How is Technology One forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
12.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNE's forecast earnings growth (12.8% per year) is above the savings rate (1.9%).
Earnings vs Market: TNE's earnings (12.8% per year) are forecast to grow faster than the Australian market (11.5% per year).
High Growth Earnings: TNE's earnings are forecast to grow, but not significantly.
Revenue vs Market: TNE's revenue (11.2% per year) is forecast to grow faster than the Australian market (5.3% per year).
High Growth Revenue: TNE's revenue (11.2% 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 (43.8%).
Past Performance
How has Technology One performed over the past 5 years?
13.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNE has a high level of non-cash earnings.
Growing Profit Margin: TNE's current net profit margins (23.7%) are higher than last year (20.2%).
Past Earnings Growth Analysis
Earnings Trend: TNE's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: TNE's earnings growth over the past year (21%) exceeds its 5-year average (13% per year).
Earnings vs Industry: TNE earnings growth over the past year (21%) underperformed the Software industry 37.5%.
Return on Equity
High ROE: TNE's Return on Equity (46.9%) is considered outstanding.
Financial Health
How is Technology One's financial position?
Financial Position Analysis
Short Term Liabilities: TNE's short term assets (A$182.5M) exceed its short term liabilities (A$174.1M).
Long Term Liabilities: TNE's short term assets (A$182.5M) exceed its long term liabilities (A$28.9M).
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
Dividend
What is Technology One current dividend yield, its reliability and sustainability?
1.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TNE's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).
High Dividend: TNE's dividend (1.14%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).
Stability and Growth of Payments
Stable Dividend: TNE is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: TNE is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TNE is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TNE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Edward Chung
4.33yrs
Tenure
AU$1,771,448
Compensation
Mr. Edward James Chung, BCom, MCom, CA, FTIA, AICD, has been the Chief Executive Officer at TechnologyOne Limited since May 23, 2017 and served as its Chief Operating Officer from February 16, 2016 to May...
CEO Compensation Analysis
Compensation vs Market: Edward's total compensation ($USD1.29M) is about average for companies of similar size in the Australian market ($USD1.73M).
Compensation vs Earnings: Edward's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TNE's management team is considered experienced (4.3 years average tenure).
Board Members
Experienced Board: TNE's board of directors are considered experienced (4.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TNE 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$3.725b
- Shares outstanding: 321.65m
- Website: https://www.technologyonecorp.com
Number of Employees
Location
- Technology One Limited
- TechnologyOne HQ
- Level 11
- Fortitude Valley
- Queensland
- 4006
- Australia
Listings
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 | 2021/09/18 08:03 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/09/30 |
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.