Temenos AG, together with its subsidiaries, develops, markets, and sells integrated banking software systems primarily to banking and other financial institutions worldwide.
Reasonable growth potential with questionable track record.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: TEMN underperformed the Swiss Software industry which returned 29.8% over the past year.
Return vs Market: TEMN underperformed the Swiss Market which returned 17.7% over the past year.
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 day ago | Simply Wall StWhat Does Temenos AG's (VTX:TEMN) P/E Ratio Tell You?
2 weeks ago | Simply Wall StDo Temenos's (VTX:TEMN) Earnings Warrant Your Attention?
3 weeks ago | Simply Wall StHere's Why Temenos (VTX:TEMN) Can Manage Its Debt Responsibly
Is Temenos undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TEMN (CHF164.1) is trading above our estimate of fair value (CHF144.77)
Significantly Below Fair Value: TEMN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TEMN is poor value based on its PE Ratio (65.1x) compared to the Software industry average (33.1x).
PE vs Market: TEMN is poor value based on its PE Ratio (65.1x) compared to the Swiss market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: TEMN is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: TEMN is overvalued based on its PB Ratio (26.6x) compared to the XE Software industry average (3.4x).
How is Temenos forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEMN's forecast earnings growth (17.5% per year) is above the savings rate (-0.6%).
Earnings vs Market: TEMN's earnings (17.5% per year) are forecast to grow faster than the Swiss market (10.6% per year).
High Growth Earnings: TEMN's earnings are forecast to grow, but not significantly.
Revenue vs Market: TEMN's revenue (12.1% per year) is forecast to grow faster than the Swiss market (3.3% per year).
High Growth Revenue: TEMN's revenue (12.1% 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 (35.4%)
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 (18.6%) are lower than last year (20%).
Past Earnings Growth Analysis
Earnings Trend: TEMN's earnings have grown significantly by 20.7% per year over the past 5 years.
Accelerating Growth: TEMN's earnings growth over the past year (7.7%) is below its 5-year average (20.7% per year).
Earnings vs Industry: TEMN earnings growth over the past year (7.7%) underperformed the Software industry 8.1%.
Return on Equity
High ROE: Whilst TEMN's Return on Equity (40.69%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
How is Temenos's financial position?
Financial Position Analysis
Short Term Liabilities: TEMN's short term assets ($541.4M) do not cover its short term liabilities ($674.2M).
Long Term Liabilities: TEMN's short term assets ($541.4M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: TEMN's debt to equity ratio (253%) is considered high.
Reducing Debt: TEMN's debt to equity ratio has increased from 85.3% to 253% over the past 5 years.
Debt Coverage: TEMN's debt is well covered by operating cash flow (30.8%).
Interest Coverage: TEMN's interest payments on its debt are well covered by EBIT (10.6x coverage).
Inventory Level: TEMN has a low level of unsold assets or inventory.
Debt Coverage by Assets: TEMN's debt is not covered by short term assets (assets are 0.5x debt).
What is Temenos's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Temenos before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TEMN's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.72%).
High Dividend: TEMN's dividend (0.52%) is low compared to the top 25% of dividend payers in the Swiss market (3.35%).
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 (46yo)
Mr. Max Chuard has been Chief Executive Officer of Temenos AG since March 1, 2019 and serves as its Member of the Executive Committee. Mr. Chuard was the Chief Financial Officer of Temenos Group AG from Ju ...
|Executive Chairman||7.6yrs||US$6.33m||no data|
|CEO & Member of the Executive Committee||0.9yrs||no data||no data|
|CFO & Member of the Executive Committee||0.9yrs||no data||no data|
|CTO & Member of the Executive Committee||0yrs||no data||no data|
|COO & Member of the Executive Committee||1yrs||no data||no data|
|Chief Product Officer & Member of the Executive Committee||0yrs||no data||no data|
|Chief Client Officer & Member of the Executive Committee||1yrs||no data||no data|
|President of North America & Member of the Executive Committee||1.1yrs||no data||no data|
|Head of Investor Relations||0yrs||no data||no data|
|General Counsel||12.1yrs||no data||no data|
Experienced Management: TEMN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
|Executive Chairman||7.6yrs||US$6.33m||no data|
|Independent Vice-Chairman||5.8yrs||US$154.72k||0.013% $1.5m|
|Independent & Non-Executive Director||7.7yrs||US$157.62k||0.0042% $494.0k|
|Non-Executive Director||19.1yrs||US$112.71k||0.021% $2.5m|
|Independent & Non-Executive Director||6.8yrs||US$114.16k||0.015% $1.8m|
|Independent & Non-Executive Director||5.8yrs||US$111.67k||no data|
|Independent & Non-Executive Director||7.7yrs||US$111.67k||0.022% $2.6m|
|Independent & Non-Executive Director||2.8yrs||US$105.00k||no data|
Experienced Board: TEMN's board of directors are considered experienced (7.2 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: CHF11.679b
- Shares outstanding: 70.95m
- Website: https://www.temenos.com
Number of Employees
- Temenos AG
- 2 Rue de L’Ecole-de-Chimie
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TEMN||SWX (SIX Swiss Exchange)||Yes||Common Shares||CH||CHF||Jun 2001|
|TMNS.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Jun 2001|
|TE8N||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jun 2001|
|0QOA||LSE (London Stock Exchange)||Yes||Common Shares||GB||CHF||Jun 2001|
|TMSN.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||Nov 2011|
|TE8A||DB (Deutsche Boerse AG)||SPONSORED ADR||DE||EUR||Nov 2011|
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 T24 Transact, a core banking solution, which offers banking software, data and analytics, and risk and compliance solutions; and Temenos Payments, a payment solution that gives banks real-time control, customer service experience, and cost efficiencies and risk management solutions. It also offers Temenos Infinity, a digital banking product; Temenos WealthSuite, which empowers a wealth manager’s business; fund administration solutions; SaaS solution that supports banks in different sectors and geographies; Islamic banking solutions; and banking software for community financial institutions. In addition, the company provides business intelligence, private wealth management, mobile and Internet banking, and other software applications; consultancy services; support services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. Temenos AG was founded in 1993 and is headquartered in Geneva, Switzerland.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 21:05|
|End of Day Share Price||2020/02/19 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.