Technology One
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
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Technology One.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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.
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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess Technology One's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) 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
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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess Technology One's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Technology One Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Technology One's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Technology One Company Filings, last reported 6 months ago.
| 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).
Financial health checks
We assess Technology One's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Technology One has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
A$2,000 of
Technology One
shares you are expected to receive
A$27
in your first year as a dividend.
Dividend Amount
- Technology One's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
- Technology One's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| Australia Software Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 1.3% |
| Australia Market Average Dividend Yield | Market Cap Weighted Average of 417 Stocks | 4.3% |
| Australia Minimum Threshold Dividend Yield | 10th Percentile | 1.6% |
| Australia Bottom 25% Dividend Yield | 25th Percentile | 2.5% |
| Australia Top 25% Dividend Yield | 75th Percentile | 5.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in A$) | 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 |
| 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.
Income/ dividend checks
We assess Technology One's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the Technology One management team is about average.
Management Team
Adrian Di Marco
Founder
A$1M
32.3 yrs
Edward Chung
Chief Executive Officer
A$1M
1.9 yrs
Stuart MacDonald
Chief Operating Officer
A$1M
1.9 yrs
Paul Jobbins
CFO & Operating Officer of Corporate Services
0.5 yrs
Stephen Kennedy
Head of Compliance & Risk and Group Company Secretary
2 yrs
Lisa Watson
Corporate Communications Manager
Paul MacRae
General Manager of Human Resources & Payroll and Business Process Automation
7.4 yrs
Gareth Pye
Acting Operating Officer of Corporate Services & Deputy CFO
A$274K
4.5 yrs
Michelle Reid
Executive Secretary
Roger Phare
Operating Officer of United Kingdom
A$521K
Board of Directors Tenure
Average tenure of the Technology One board of directors in years:
- The tenure for the Technology One board of directors is about average.
Board of Directors
Adrian Di Marco
Founder
A$1M
Ron McLean
Deputy Chair
A$128K
1.7 yrs
Kevin Blinco
Independent Non-Executive Director
A$128K
15 yrs
Richard Anstey
Independent Non-Executive Director
A$128K
13.3 yrs
John MacTaggart
Non-Executive Director
A$128K
19.3 yrs
Jane Andrews
Independent Non-Executive Director
A$128K
3.2 yrs
Sharon Doyle
Independent Non-Executive Director
A$75K
0.9 yrs
Cliff Rosenberg
Independent Non-Executive Director
54
0.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | 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 | ||
Management checks
We assess Technology One's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleWhy 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 - – Full articleHow 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 - – Full articleZooming 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 - – Full articleTechnology 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 - – Full articleCould 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 - – Full articleIs 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 - – Full articleDid 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 - – Full articleWhy 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 - – Full articleTechnology 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 - – Full articleTNE 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
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.
