Temenos AG, together with its subsidiaries, develops, markets, and sells integrated banking software systems primarily to banking and other financial institutions worldwide. More Details
Proven track record with reasonable growth potential.
Share Price & News
How has Temenos's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TEMN is more volatile than 90% of Swiss stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: TEMN's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Swiss stocks.
7 Day Return
1 Year Return
Return vs Industry: TEMN underperformed the Swiss Software industry which returned 17.4% over the past year.
Return vs Market: TEMN underperformed the Swiss Market which returned 17.7% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Temenos's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StA Closer Look At Temenos AG's (VTX:TEMN) Impressive ROE
3 weeks ago | Simply Wall StHow Much Of Temenos AG (VTX:TEMN) Do Insiders Own?
1 month ago | Simply Wall StIs Temenos (VTX:TEMN) Using Too Much Debt?
Is Temenos undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TEMN (CHF132.9) is trading below our estimate of fair value (CHF175.94)
Significantly Below Fair Value: TEMN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TEMN is poor value based on its PE Ratio (54.2x) compared to the European Software industry average (47.2x).
PE vs Market: TEMN is poor value based on its PE Ratio (54.2x) compared to the Swiss market (24.4x).
Price to Earnings Growth Ratio
PEG Ratio: TEMN is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: TEMN is overvalued based on its PB Ratio (21.1x) compared to the XE Software industry average (4.6x).
How is Temenos forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEMN's forecast earnings growth (15.3% per year) is above the savings rate (-0.3%).
Earnings vs Market: TEMN's earnings (15.3% per year) are forecast to grow faster than the Swiss market (12.6% per year).
High Growth Earnings: TEMN's earnings are forecast to grow, but not significantly.
Revenue vs Market: TEMN's revenue (10.8% per year) is forecast to grow faster than the Swiss market (4.5% per year).
High Growth Revenue: TEMN's revenue (10.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TEMN's Return on Equity is forecast to be high in 3 years time (36.9%)
How has Temenos performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEMN has high quality earnings.
Growing Profit Margin: TEMN's current net profit margins (21.3%) are higher than last year (16.7%).
Past Earnings Growth Analysis
Earnings Trend: TEMN's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: TEMN's earnings growth over the past year (20.9%) exceeds its 5-year average (13% per year).
Earnings vs Industry: TEMN earnings growth over the past year (20.9%) underperformed the Software industry 21.3%.
Return on Equity
High ROE: Whilst TEMN's Return on Equity (38.51%) is high, this metric is skewed due to their high level of debt.
How is Temenos's financial position?
Financial Position Analysis
Short Term Liabilities: TEMN's short term assets ($398.5M) do not cover its short term liabilities ($596.1M).
Long Term Liabilities: TEMN's short term assets ($398.5M) do not cover its long term liabilities ($1.0B).
Debt to Equity History and Analysis
Debt Level: TEMN's debt to equity ratio (176%) is considered high.
Reducing Debt: TEMN's debt to equity ratio has increased from 101.8% to 176% over the past 5 years.
Debt Coverage: TEMN's debt is well covered by operating cash flow (44.8%).
Interest Coverage: TEMN's interest payments on its debt are well covered by EBIT (9.8x coverage).
What is Temenos's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TEMN's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.52%).
High Dividend: TEMN's dividend (0.65%) is low compared to the top 25% of dividend payers in the Swiss market (3.6%).
Stability and Growth of Payments
Stable Dividend: TEMN is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.
Growing Dividend: TEMN is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TEMN is not paying a notable dividend for the Swiss market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TEMN's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Max Chuard (47 yo)
Mr. Max Chuard has been Chief Executive Officer of Temenos AG since March 1, 2019 and serves as its Member of the Executive Committee since February 12, 2019. Mr. Chuard was the Chief Financial Officer of ...
CEO Compensation Analysis
Compensation vs Market: Max's total compensation ($USD7.45M) is about average for companies of similar size in the Swiss market ($USD5.84M).
Compensation vs Earnings: Max's compensation has been consistent with company performance over the past year.
Experienced Management: TEMN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: TEMN's board of directors are considered experienced (4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Temenos AG's company bio, employee growth, exchange listings and data sources
- Name: Temenos AG
- Ticker: TEMN
- Exchange: SWX
- Founded: 1993
- Industry: Application Software
- Sector: Software
- Market Cap: CHF9.646b
- Shares outstanding: 72.58m
- Website: https://www.temenos.com
Number of Employees
- Temenos AG
- 2 Rue de L’Ecole-de-Chimie
Temenos AG, together with its subsidiaries, develops, markets, and sells integrated banking software systems primarily to banking and other financial institutions worldwide. The company provides Temenos Tr...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/16 02:33|
|End of Day Share Price||2021/05/14 00:00|
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.