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Temenos

SWX:TEMN
Snowflake Description

Solid track record with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TEMN
SWX
CHF12B
Market Cap
  1. Home
  2. CH
  3. Software
Company description

Temenos AG, together with its subsidiaries, develops, markets, and sells integrated banking software systems primarily to banking and other financial institutions worldwide. The last earnings update was 3 days ago. More info.


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  • Temenos has significant price volatility in the past 3 months.
TEMN Share Price and Events
7 Day Returns
5.2%
SWX:TEMN
13.2%
Europe Software
0.3%
CH Market
1 Year Returns
39.4%
SWX:TEMN
29.5%
Europe Software
2.7%
CH Market
TEMN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Temenos (TEMN) 5.2% 16.3% 25.6% 39.4% 222.4% 430.9%
Europe Software 13.2% 14.2% 25.2% 29.5% 67.8% 113.6%
CH Market 0.3% -0.8% 4.9% 2.7% 12.2% 12%
1 Year Return vs Industry and Market
  • TEMN outperformed the Software industry which returned 29.5% over the past year.
  • TEMN outperformed the Market in Switzerland which returned 2.7% over the past year.
Price Volatility
TEMN
Industry
5yr Volatility vs Market

Value

 Is Temenos 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 Temenos 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Temenos.

SWX:TEMN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:TEMN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
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- 18%) (5.69%))
1.125
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.125 * 5.96%)
9.98%

Discounted Cash Flow Calculation for SWX:TEMN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Temenos 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.

SWX:TEMN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.98%)
2019 319.67 Analyst x6 290.66
2020 353.14 Analyst x7 291.96
2021 411.81 Analyst x6 309.57
2022 442.50 Analyst x2 302.45
2023 491.00 Analyst x1 305.15
2024 531.56 Est @ 8.26% 300.38
2025 567.52 Est @ 6.77% 291.60
2026 599.97 Est @ 5.72% 280.30
2027 629.88 Est @ 4.99% 267.57
2028 658.05 Est @ 4.47% 254.17
Present value of next 10 years cash flows $2,893.82
SWX:TEMN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $658.05 × (1 + 3.28%) ÷ (9.98% – 3.28%)
$10,136.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $10,136.00 ÷ (1 + 9.98%)10
$3,915.03
SWX:TEMN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,893.82 + $3,915.03
$6,808.85
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,808.85 / 69.36
$98.17
SWX:TEMN Discount to Share Price
Calculation Result
Exchange Rate USD/CHF
(Reporting currency to currency of SWX:TEMN)
1.014
Value per Share
(CHF)
= Value per Share in USD x Exchange Rate (USD/CHF)
= $98.17 x 1.014
CHF99.54
Value per share (CHF) From above. CHF99.54
Current discount Discount to share price of CHF165.90
= -1 x (CHF165.90 - CHF99.54) / CHF99.54
-66.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Temenos is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Temenos's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Temenos's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:TEMN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.54
SWX:TEMN Share Price ** SWX (2019-04-18) in CHF CHF165.9
SWX:TEMN Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 0.986 $163.62
Europe Software Industry PE Ratio Median Figure of 138 Publicly-Listed Software Companies 29.34x
Switzerland Market PE Ratio Median Figure of 174 Publicly-Listed Companies 18.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Temenos.

SWX:TEMN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:TEMN Share Price ÷ EPS (both in USD)

= 163.62 ÷ 2.54

64.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Temenos is overvalued based on earnings compared to the Europe Software industry average.
  • Temenos is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Temenos's expected growth come at a high price?
Raw Data
SWX:TEMN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 64.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
17.8%per year
Europe Software Industry PEG Ratio Median Figure of 75 Publicly-Listed Software Companies 2.12x
Switzerland Market PEG Ratio Median Figure of 122 Publicly-Listed Companies 2.22x

*Line of best fit is calculated by linear regression .

SWX:TEMN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 64.54x ÷ 17.8%

3.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Temenos is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Temenos's assets?
Raw Data
SWX:TEMN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.73
SWX:TEMN Share Price * SWX (2019-04-18) in CHF CHF165.9
SWX:TEMN Share Price converted to USD reporting currency Exchange rate (CHF/ USD) 0.986 $163.62
Europe Software Industry PB Ratio Median Figure of 243 Publicly-Listed Software Companies 2.81x
Switzerland Market PB Ratio Median Figure of 210 Publicly-Listed Companies 1.71x
SWX:TEMN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:TEMN Share Price ÷ Book Value per Share (both in USD)

= 163.62 ÷ 4.73

34.6x

* Primary Listing of Temenos.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Temenos is overvalued based on assets compared to the Europe Software industry average.
X
Value checks
We assess Temenos's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Temenos 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.

Future Performance

 How is Temenos expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

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!
Annual Growth Rate
17.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Temenos expected to grow at an attractive rate?
  • Temenos's earnings growth is expected to exceed the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Temenos's earnings growth is expected to exceed the Switzerland market average.
  • Temenos's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:TEMN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:TEMN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 17.8%
SWX:TEMN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 13.3%
Europe Software Industry Earnings Growth Rate Market Cap Weighted Average 13.7%
Europe Software Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.6%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*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
Raw Data
SWX:TEMN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:TEMN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,690 617 401 3
2022-12-31 1,476 555 340 3
2021-12-31 1,250 477 302 13
2020-12-31 1,102 409 252 14
2019-12-31 988 354 199 12
SWX:TEMN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 872 351 176
2018-12-31 841 344 168
2018-09-30 819 326 158
2018-06-30 797 315 151
2018-03-31 766 294 143
2017-12-31 735 288 138
2017-09-30 694 266 133
2017-06-30 668 264 126
2017-03-31 647 261 122
2016-12-31 634 247 116
2016-09-30 612 252 98
2016-06-30 596 252 86

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Temenos's earnings are expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
  • Temenos's revenue is expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:TEMN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Temenos Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:TEMN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.50 5.50 5.50 1.00
2022-12-31 4.67 4.67 4.67 1.00
2021-12-31 4.21 4.94 3.51 9.00
2020-12-31 3.50 3.81 3.11 10.00
2019-12-31 2.78 2.97 2.67 9.00
SWX:TEMN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.54
2018-12-31 2.43
2018-09-30 2.29
2018-06-30 2.17
2018-03-31 2.05
2017-12-31 1.98
2017-09-30 1.91
2017-06-30 1.81
2017-03-31 1.75
2016-12-31 1.69
2016-09-30 1.45
2016-06-30 1.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Temenos is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Temenos's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Temenos 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.

Past Performance

  How has Temenos 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
Below we compare Temenos's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Temenos's year on year earnings growth rate has been positive over the past 5 years.
  • Temenos's 1-year earnings growth exceeds its 5-year average (23% vs 18.9%)
  • Temenos's earnings growth has exceeded the Europe Software industry average in the past year (23% vs 15.8%).
Earnings and Revenue History
Temenos's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Temenos Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:TEMN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 871.90 176.04 238.55
2018-12-31 840.86 168.23 231.59
2018-09-30 818.96 158.42 234.18
2018-06-30 797.43 151.15 225.36
2018-03-31 765.62 143.13 214.65
2017-12-31 735.36 138.41 202.83
2017-09-30 693.90 132.84 191.98
2017-06-30 668.14 126.13 185.50
2017-03-31 647.40 121.78 178.81
2016-12-31 634.04 115.83 174.72
2016-09-30 611.63 98.25 167.20
2016-06-30 596.03 85.96 173.18
2016-03-31 569.59 71.77 166.63
2015-12-31 542.50 66.34 167.43
2015-09-30 507.23 76.09 145.84
2015-06-30 476.01 73.06 141.07
2015-03-31 461.16 80.56 138.34
2014-12-31 468.70 91.63 139.46
2014-09-30 480.21 83.77 146.38
2014-06-30 476.02 82.11 144.17
2014-03-31 473.75 76.33 140.09
2013-12-31 467.80 68.22 139.77
2013-09-30 457.37 56.48 146.40
2013-06-30 457.84 48.27 147.81
2013-03-31 453.48 39.25 147.04
2012-12-31 450.21 25.12 148.44
2012-09-30 443.03 -12.84 75.75
2012-06-30 453.86 -6.61 233.74

*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.
  • Whilst Temenos made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Temenos used its assets more efficiently than the Europe Software industry average last year based on Return on Assets.
  • Temenos has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Temenos's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Temenos has a total score of 5/6, 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.

Health

 How is Temenos'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 Temenos's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Temenos's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Temenos's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Temenos's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x 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.
Raw Data

All data from Temenos Company Filings, last reported 2 weeks ago.

SWX:TEMN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 332.65 646.21 96.81
2018-12-31 298.77 814.08 294.02
2018-09-30 231.23 530.74 91.93
2018-06-30 224.80 504.49 87.96
2018-03-31 410.61 450.21 195.31
2017-12-31 379.51 440.18 171.82
2017-09-30 446.08 438.87 161.08
2017-06-30 387.52 552.88 252.91
2017-03-31 414.90 379.03 209.89
2016-12-31 399.14 371.96 198.21
2016-09-30 408.03 388.96 115.84
2016-06-30 370.91 385.79 99.86
2016-03-31 384.50 393.50 113.60
2015-12-31 375.30 460.45 194.52
2015-09-30 334.42 501.18 83.59
2015-06-30 308.34 509.48 64.03
2015-03-31 318.40 513.03 106.41
2014-12-31 342.04 292.09 195.75
2014-09-30 345.10 299.71 137.39
2014-06-30 412.74 316.55 198.31
2014-03-31 427.59 316.46 220.29
2013-12-31 408.17 213.09 118.09
2013-09-30 355.60 255.43 57.18
2013-06-30 370.45 215.04 67.38
2013-03-31 389.88 210.67 92.79
2012-12-31 387.78 214.36 118.29
2012-09-30 354.35 248.94 72.64
2012-06-30 340.62 223.72 62.56
  • Temenos's level of debt (194.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (74% vs 194.3% today).
  • Debt is well covered by operating cash flow (54.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.9x coverage).
X
Financial health checks
We assess Temenos's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Temenos has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

Dividends

 What is Temenos'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
Dividend payments
0.45%
Current annual income from Temenos dividends. Estimated to be 0.62% next year.
If you bought CHF2,000 of Temenos shares you are expected to receive CHF9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Temenos's pays a lower dividend yield than the bottom 25% of dividend payers in Switzerland (1.91%).
  • Temenos's dividend is below the markets top 25% of dividend payers in Switzerland (3.55%).
Upcoming dividend payment

Purchase Temenos before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
SWX:TEMN Annualized Past and Future Dividends
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 14 Analyst Estimates (S&P Global) See Below
Europe Software Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 1.3%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 167 Stocks 3.1%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.3%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.9%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:TEMN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.35 2.00
2022-12-31 1.23 2.00
2021-12-31 1.15 13.00
2020-12-31 0.98 14.00
2019-12-31 0.84 14.00
SWX:TEMN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-29 0.740 0.484
2018-03-26 0.643 0.468
2018-02-13 0.680 0.569
2017-03-31 0.545 0.548
2016-02-16 0.436 0.748
2015-02-18 0.388 1.053
2015-02-10 0.424 1.264
2014-03-25 0.344 1.074
2014-02-18 0.392 1.144
2013-03-01 0.300 1.211

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Temenos is not paying a notable dividend for Switzerland, therefore no need to check if the payments are stable.
  • Temenos is not paying a notable dividend for Switzerland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Temenos's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Temenos's dividends as it is not paying a notable one for Switzerland.
Future Payout to shareholders
  • No need to calculate the sustainability of Temenos's dividends in 3 years as they are not expected to pay a notable one for Switzerland.
X
Income/ dividend checks
We assess Temenos's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Temenos afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Temenos has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Temenos's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Max Chuard
COMPENSATION $0
AGE 45
TENURE AS CEO 0.1 years
CEO Bio

Mr. Max Chuard has been Chief Executive Officer of Temenos AG since March 1, 2019. Mr. Chuard was the Chief Financial Officer of Temenos Group AG from July 11, 2012 to 2019 and was its Chief Operating Officer from December 5, 2015 to 2018. Mr. Chuard served as Director of Investor Relations and Corporate Finance of Temenos Group AG until July 11, 2012. He served as Director of M&A and Investor Relations and IR Member of the Executive Board of Temenos Group AG and as its Director of Corporate Finance. He joined Temenos Group AG in 2002, initially responsible for acquisitions and special projects; he then assumed responsibilities for Corporate Finance and Investor Relations. Mr. Chuard served as Member of the Executive Board at Temenos Group AG until November 30, 2007. He spent five years in investment banking, initially at JP Morgan and then at SWICORP, a Swiss merchant bank. He graduated from HEC Lausanne in Switzerland with a degree in business administration and a major in corporate finance. He is a Swiss national. He holds positions on the Board of Directors of a number of operating companies within the Group. Mr. Chuard holds Bachelor's Degree in Corporate Finance from HEC - Lausanne.

CEO Compensation
  • Insufficient data for Max to compare compensation growth.
  • Insufficient data for Max to establish whether their remuneration is reasonable compared to companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Temenos management team in years:

1.3
Average Tenure
49
Average Age
  • The average tenure for the Temenos management team is less than 2 years, this suggests a new team.
Management Team

Andreas Andreades

TITLE
Executive Chairman
COMPENSATION
$6M
AGE
53

Max Chuard

TITLE
Chief Executive Officer
AGE
45
TENURE
0.1 yrs

Takis Spiliopoulos

TITLE
Chief Financial Officer
AGE
48
TENURE
0.1 yrs

Jean-Michel Hilsenkopf

TITLE
Chief Operating Officer
AGE
55
TENURE
0.2 yrs

André Loustau

TITLE
Chief Technology Officer
AGE
60
TENURE
18.3 yrs

Adam Snyder

TITLE
Head of Investor Relations

Deirdre Dempsey

TITLE
General Counsel
AGE
47
TENURE
11.3 yrs

Carl Robertson

TITLE
Chief Marketing Officer
AGE
46
TENURE
2.3 yrs

Guylaine Gaudreau

TITLE
Group Human Resources Director
AGE
49
TENURE
3.3 yrs

Enrique O’Reilly

TITLE
Managing Director - Latin America & Caribbean
AGE
55
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Temenos board of directors in years:

6.3
Average Tenure
66.5
Average Age
  • The tenure for the Temenos board of directors is about average.
Board of Directors

Andreas Andreades

TITLE
Executive Chairman
COMPENSATION
$6M
AGE
53
TENURE
6.8 yrs

Sergio Giacoletto-Roggio

TITLE
Vice-Chairman
COMPENSATION
$155K
AGE
69
TENURE
4.9 yrs

Ian Cookson

TITLE
Independent & Non-Executive Director
COMPENSATION
$112K
AGE
71
TENURE
6.8 yrs

Thibault de Tersant

TITLE
Independent & Non-Executive Director
COMPENSATION
$158K
AGE
61
TENURE
6.8 yrs

George Koukis

TITLE
Non-Executive Director
COMPENSATION
$113K
AGE
72
TENURE
18.3 yrs

Erik Hansen

TITLE
Independent & Non-Executive Director
COMPENSATION
$114K
AGE
66
TENURE
5.9 yrs

Amy Yip

TITLE
Independent & Non-Executive Director
COMPENSATION
$112K
AGE
67
TENURE
4.9 yrs

Peter Spenser

TITLE
Independent & Non-Executive Director
COMPENSATION
$105K
AGE
64
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Temenos's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Temenos 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.

News

Simply Wall St News

What Percentage Of Temenos AG (VTX:TEMN) Shares Do Insiders Own?

The big shareholder groups in Temenos AG (VTX:TEMN) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

A Close Look At Temenos AG’s (VTX:TEMN) 20% ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

If You Had Bought Temenos (VTX:TEMN) Stock Five Years Ago, You Could Pocket A 366% Gain Today

And highest quality companies can see their share prices grow by huge amounts. … During five years of share price growth, Temenos achieved compound earnings per share (EPS) growth of 20% per year. … This EPS growth is slower than the share price growth of 36% per year, over the same period.

Simply Wall St -

What Do Analysts Think About The Future Of Temenos AG's (VTX:TEMN)?

Based on Temenos AG's (VTX:TEMN) earnings update on 31 December 2018,. … in-line with its track record, as upcoming earnings growth is expected to be 19% next year, similar to the range of average earnings growth for the past five years of 18% per year

Simply Wall St -

Should We Worry About Temenos AG's (VTX:TEMN) P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Why Temenos AG (VTX:TEMN) Could Be Worth Watching

Temenos AG (VTX:TEMN), which is in the software business, and is based in Switzerland,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Temenos’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Should You Be Excited About Temenos AG's (VTX:TEMN) 69% Return On Equity?

Our data shows Temenos has a return on equity of 69% for the last year. … One way to conceptualize this, is that for each CHF1 of shareholders' equity it has, the company made CHF0.69 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholders Own Temenos AG (VTX:TEMN)?

The big shareholder groups in Temenos AG (VTX:TEMN) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of CHF7.9b, Temenos is rather large.

Simply Wall St -

Understanding Your Return On Investment In Temenos AG (VTX:TEMN)

and looking to gauge the potential return on investment in Temenos AG (VTX:TEMN). … Therefore, looking at how efficiently Temenos is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Temenos AG (VTX:TEMN) Investors Are Paying Above The Intrinsic Value

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

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.

Details
Name: Temenos AG
TEMN
Exchange: SWX
Founded: 1993
CHF11,506,445,748
69,357,720
Website: http://www.temenos.com
Address: Temenos AG
2 Rue de L’Ecole-de-Chimie,
Geneva,
Geneva, 1205,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX TEMN Common Shares SIX Swiss Exchange CH CHF 27. Jun 2001
OTCPK TMNS.F Common Shares Pink Sheets LLC US USD 27. Jun 2001
DB TE8N Common Shares Deutsche Boerse AG DE EUR 27. Jun 2001
LSE 0QOA Common Shares London Stock Exchange GB CHF 27. Jun 2001
BATS-CHIXE TEMNZ Common Shares BATS 'Chi-X Europe' GB CHF 27. Jun 2001
OTCPK TMSN.Y SPONSORED ADR Pink Sheets LLC US USD 09. Nov 2011
Number of employees
Current staff
Staff numbers
5,388
Temenos employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 20:49
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/19
Last earnings filing: 2019/04/16
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.