ASX:TNE

Stock Analysis Report

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Executive Summary

Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions worldwide. More Details


Snowflake Analysis

Flawless balance sheet with proven track record 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 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

-2.6%

TNE

-0.6%

AU Software

-0.06%

AU Market


1 Year Return

-0.4%

TNE

27.5%

AU Software

1.0%

AU Market

Return vs Industry: TNE underperformed the Australian Software industry which returned 27.5% over the past year.

Return vs Market: TNE underperformed the Australian Market which returned 1% over the past year.


Shareholder returns

TNEIndustryMarket
7 Day-2.6%-0.6%-0.06%
30 Day-1.8%7.2%9.3%
90 Day18.4%14.9%12.0%
1 Year1.0%-0.4%28.6%27.5%4.4%1.0%
3 Year86.2%77.4%124.5%116.0%23.9%8.5%
5 Year115.7%98.2%203.0%181.5%60.2%27.7%

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

Valuation

Is Technology One undervalued compared to its fair value and its price relative to the market?

45.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TNE (A$8.96) is trading above our estimate of fair value (A$8.29)

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 (45.4x) compared to the AU Software industry average (34.5x).

PE vs Market: TNE is poor value based on its PE Ratio (45.4x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: TNE is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: TNE is overvalued based on its PB Ratio (20.1x) compared to the AU Software industry average (5.8x).


Next Steps

Future Growth

How is Technology One forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNE's forecast earnings growth (13.7% per year) is above the savings rate (2.3%).

Earnings vs Market: TNE's earnings (13.7% per year) are forecast to grow slower than the Australian market (18.1% per year).

High Growth Earnings: TNE's earnings are forecast to grow, but not significantly.

Revenue vs Market: TNE's revenue (9.3% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: TNE's revenue (9.3% 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 (42.6%).


Next Steps

Past Performance

How has Technology One performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TNE has high quality earnings.

Growing Profit Margin: TNE's current net profit margins (21.1%) are higher than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: TNE's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: TNE's earnings growth over the past year (7.7%) is below its 5-year average (10% per year).

Earnings vs Industry: TNE earnings growth over the past year (7.7%) underperformed the Software industry 20.2%.


Return on Equity

High ROE: TNE's Return on Equity (44.3%) 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$207.0M) exceed its short term liabilities (A$204.0M).

Long Term Liabilities: TNE's short term assets (A$207.0M) exceed its long term liabilities (A$29.8M).


Debt to Equity History and Analysis

Debt Level: TNE is debt free.

Reducing Debt: TNE currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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?

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TNE's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: TNE's dividend (1.44%) is low compared to the top 25% of dividend payers in the Australian market (5.02%).


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 (65.2%), 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 (66.9% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Edward Chung

3.58yrs

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 ($USD1.32M) is about average for companies of similar size in the Australian market ($USD1.33M).

Compensation vs Earnings: Edward's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adrian Di Marco
Founderno dataAU$1.56m4.36%
A$ 126.4m
Edward Chung
Chief Executive Officer3.58yrsAU$1.77m0.18%
A$ 5.1m
Paul Jobbins
CFO & Operating Officer of Corporate Services and Company Secretary2.17yrsAU$764.19kno data
Stuart MacDonald
Chief Operating Officer3.58yrsAU$1.29mno data
Stephen Kennedy
Head of Governance3.67yrsno datano data
Lisa Watson
Corporate Communications Managerno datano datano data
Darren Needham-Walker
Group Director of Marketingno datano datano data
Paul MacRae
General Manager of Human Resources & Payroll and Business Process Automation9.08yrsno datano data
Gareth Pye
Deputy CFO & Group Director of Corporate Development6.17yrsAU$273.70kno data
Michelle Reid
Executive Secretaryno datano datano data
Roger Phare
Operating Officer of United Kingdomno dataAU$520.79kno data
Cliff Combes
Local Government Sales Director6.33yrsno datano data

4.9yrs

Average Tenure

Experienced Management: TNE's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adrian Di Marco
Founderno dataAU$1.56m4.36%
A$ 126.4m
Jane Andrews
Independent Non-Executive Director4.83yrsAU$141.00k0.0095%
A$ 276.3k
Richard Anstey
Independent Non-Executive Director15yrsAU$141.00k0.0079%
A$ 230.2k
John MacTaggart
Non-Executive Director21yrsAU$141.00k9.63%
A$ 279.3m
Ronald McLean
Independent Deputy Chair3.33yrsAU$141.00k0.022%
A$ 629.8k
Kevin Blinco
Independent Non-Executive Director16.67yrsAU$141.00k0.059%
A$ 1.7m
Clifford Rosenberg
Independent Non-Executive Director1.83yrsAU$141.00k0.0086%
A$ 248.5k
Sharon Doyle
Independent Non-Executive Director2.58yrsAU$141.00k0.0057%
A$ 165.0k
Peter Ball
Independent Non-Executive Director0.75yrAU$82.25k0.0056%
A$ 162.7k

4.1yrs

Average Tenure

Experienced Board: TNE's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TNE insiders have only sold shares 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$2.900b
  • Shares outstanding: 321.10m
  • Website: https://www.technologyonecorp.com

Number of Employees


Location

  • Technology One Limited
  • TechnologyOne HQ
  • Level 11
  • Fortitude Valley
  • Queensland
  • 4006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1999
TNECHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1999
RW8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 07:04
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.