| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 2/6 |
TEMN Stock Overview
Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide.
Temenos Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CHF84.84 |
| 52 Week High | CHF151.85 |
| 52 Week Low | CHF69.64 |
| Beta | 1.09 |
| 1 Month Change | -11.03% |
| 3 Month Change | -10.51% |
| 1 Year Change | -44.04% |
| 3 Year Change | -51.42% |
| 5 Year Change | -0.89% |
| Change since IPO | 311.85% |
Recent News & Updates
Shareholder Returns
| TEMN | CH Software | CH Market | |
|---|---|---|---|
| 7D | 9.9% | 4.0% | 3.4% |
| 1Y | -44.0% | -23.6% | -12.4% |
Return vs Industry: TEMN underperformed the Swiss Software industry which returned -23.6% over the past year.
Return vs Market: TEMN underperformed the Swiss Market which returned -12.4% over the past year.
Price Volatility
| TEMN volatility | |
|---|---|
| TEMN Average Weekly Movement | 9.2% |
| Software Industry Average Movement | 6.7% |
| Market Average Movement | 4.6% |
| 10% most volatile stocks in CH Market | 7.6% |
| 10% least volatile stocks in CH Market | 2.4% |
Stable Share Price: TEMN is more volatile than 90% of Swiss stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: TEMN's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Swiss stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 8,185 | Max Chuard | https://www.temenos.com |
Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. The company provides Temenos Transact, a banking solution that offers banking software, and data and analytics; 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 Multifonds, a fund administration solution; Temenos SaaS solution that supports banks in various sectors and geographies; Temenos Quantum, a multi-experience development platform that delivers digital transformation; and Temenos AI that provides frictionless customer experiences and automate processes.
Temenos Fundamentals Summary
| TEMN fundamental statistics | |
|---|---|
| Market Cap | US$6.37b |
| Earnings (TTM) | US$180.13m |
| Revenue (TTM) | US$978.25m |
35.3x
P/E Ratio6.5x
P/S RatioIs TEMN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TEMN income statement (TTM) | |
|---|---|
| Revenue | US$978.25m |
| Cost of Revenue | US$324.20m |
| Gross Profit | US$654.05m |
| Other Expenses | US$473.91m |
| Earnings | US$180.13m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Jul 21, 2022
| Earnings per share (EPS) | 2.51 |
| Gross Margin | 66.86% |
| Net Profit Margin | 18.41% |
| Debt/Equity Ratio | 167.1% |
How did TEMN perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield44%
Payout RatioValuation
Is TEMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TEMN?
Other financial metrics that can be useful for relative valuation.
| What is TEMN's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$6.37b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 7.3x |
| Enterprise Value/EBITDA | 25.9x |
| PEG Ratio | 1.9x |
Price to Earnings Ratio vs Peers
How does TEMN's PE Ratio compare to its peers?
| TEMN PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 95x | ||
CDK CDK Global | 27.1x | 29.2% | US$6.4b |
MANH Manhattan Associates | 64.1x | 6.0% | US$7.6b |
SGE Sage Group | 22.6x | 9.3% | UK£6.6b |
NCR NCR | 266x | 114.1% | US$4.5b |
TEMN Temenos | 35.3x | 19.0% | CHF6.1b |
Price-To-Earnings vs Peers: TEMN is good value based on its Price-To-Earnings Ratio (35.3x) compared to the peer average (95x).
Price to Earnings Ratio vs Industry
How does TEMN's PE Ratio compare vs other companies in the European Software Industry?
Price-To-Earnings vs Industry: TEMN is expensive based on its Price-To-Earnings Ratio (35.3x) compared to the European Software industry average (32.4x)
Price to Earnings Ratio vs Fair Ratio
What is TEMN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 35.3x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TEMN's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of TEMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TEMN (CHF84.84) is trading below our estimate of fair value (CHF175.05)
Significantly Below Fair Value: TEMN is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: TEMN is poor value based on its PEG Ratio (1.9x)
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Future Growth
How is Temenos forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
19.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEMN's forecast earnings growth (19% per year) is above the savings rate (-0.3%).
Earnings vs Market: TEMN's earnings (19% per year) are forecast to grow faster than the Swiss market (6.1% per year).
High Growth Earnings: TEMN's earnings are forecast to grow, but not significantly.
Revenue vs Market: TEMN's revenue (11.4% per year) is forecast to grow faster than the Swiss market (4.3% per year).
High Growth Revenue: TEMN's revenue (11.4% 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 (36.4%)
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Past Performance
How has Temenos performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
6.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEMN has high quality earnings.
Growing Profit Margin: TEMN's current net profit margins (18.4%) are lower than last year (21.3%).
Past Earnings Growth Analysis
Earnings Trend: TEMN's earnings have grown by 6.8% per year over the past 5 years.
Accelerating Growth: TEMN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TEMN had negative earnings growth (-6.6%) over the past year, making it difficult to compare to the Software industry average (16.5%).
Return on Equity
High ROE: Whilst TEMN's Return on Equity (34.15%) is high, this metric is skewed due to their high level of debt.
Discover strong past performing companies
Financial Health
How is Temenos's financial position?
Financial Health Score
2/6Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: TEMN's short term assets ($442.0M) do not cover its short term liabilities ($865.9M).
Long Term Liabilities: TEMN's short term assets ($442.0M) do not cover its long term liabilities ($803.6M).
Debt to Equity History and Analysis
Debt Level: TEMN's net debt to equity ratio (148.8%) is considered high.
Reducing Debt: TEMN's debt to equity ratio has increased from 90.5% to 167.1% over the past 5 years.
Debt Coverage: TEMN's debt is well covered by operating cash flow (51.2%).
Interest Coverage: TEMN's interest payments on its debt are well covered by EBIT (13.1x coverage).
Balance Sheet
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Dividend
What is Temenos's current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.12%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TEMN's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.99%).
High Dividend: TEMN's dividend (1.12%) is low compared to the top 25% of dividend payers in the Swiss market (4.14%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, TEMN has been paying a dividend for less than 10 years.
Growing Dividend: TEMN's dividend payments have increased, but the company has only paid a dividend for 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (43.5%), TEMN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (20.7%), TEMN's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Max Chuard (48 yo)
3.33yrs
Tenure
US$8,839,294
Compensation
Mr. Max Chuard has been Chief Executive Officer of Temenos AG since March 01, 2019. Mr. Chuard was the Chief Financial Officer of Temenos AG (formerly known as Temenos Group AG) since July 11, 2012 until F...
CEO Compensation Analysis
Compensation vs Market: Max's total compensation ($USD8.84M) is above average for companies of similar size in the Swiss market ($USD2.28M).
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 considered experienced (3.3 years average tenure).
Board Members
Experienced Board: TEMN's board of directors are considered experienced (3.6 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 employee growth, exchange listings and data sources
Key Information
- Name: Temenos AG
- Ticker: TEMN
- Exchange: SWX
- Founded: 1993
- Industry: Application Software
- Sector: Software
- Implied Market Cap: CHF6.079b
- Shares outstanding: 71.65m
- Website: https://www.temenos.com
Number of Employees
Location
- Temenos AG
- 2 Rue de L’Ecole-de-Chimie
- Geneva
- Geneva
- 1205
- Switzerland
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/26 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.