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Market Cap

CHF9.6b

Last Updated

2021/05/16 02:33 UTC

Data Sources

Company Financials +

Executive Summary

Temenos AG, together with its subsidiaries, develops, markets, and sells integrated banking software systems primarily to banking and other financial institutions worldwide. More Details


Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

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.


Market Performance


7 Day Return

1.8%

TEMN

-2.9%

CH Software

-0.8%

CH Market


1 Year Return

4.7%

TEMN

17.4%

CH Software

17.7%

CH Market

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.


Shareholder returns

TEMNIndustryMarket
7 Day1.8%-2.9%-0.8%
30 Day-8.4%-4.1%-1.8%
90 Day26.2%-1.3%2.4%
1 Year5.3%4.7%21.1%17.4%21.1%17.7%
3 Year-7.3%-8.3%36.6%29.5%30.1%15.3%
5 Year153.9%148.6%99.7%83.6%59.6%30.5%

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

Valuation

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

24.5%

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).


Future Growth

How is Temenos forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

15.3%

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%)


Past Performance

How has Temenos performed over the past 5 years?

13.0%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Temenos's current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 16 2021Ex Dividend DateMay 25 2021Dividend Pay DateMay 27 20212 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

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.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Max Chuard (47 yo)

2.17yrs

Tenure

US$7,447,087

Compensation

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.


Leadership Team

Experienced Management: TEMN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: TEMN's board of directors are considered experienced (4 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Temenos AG's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Temenos AG
  • 2 Rue de L’Ecole-de-Chimie
  • Geneva
  • Geneva
  • 1205
  • Switzerland

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 02:33
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.