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TEMN

Temenos SWX:TEMN Stock Report

Last Price

CHF84.84

Market Cap

CHF6.1b

7D

9.9%

1Y

-44.0%

Updated

26 Jun, 2022

Data

Company Financials +
TEMN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends2/6

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

Summary of all time highs, changes and price drops for Temenos
Historical stock prices
Current Share PriceCHF84.84
52 Week HighCHF151.85
52 Week LowCHF69.64
Beta1.09
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 IPO311.85%

Recent News & Updates

Shareholder Returns

TEMNCH SoftwareCH Market
7D9.9%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

Is TEMN's price volatile compared to industry and market?
TEMN volatility
TEMN Average Weekly Movement9.2%
Software Industry Average Movement6.7%
Market Average Movement4.6%
10% most volatile stocks in CH Market7.6%
10% least volatile stocks in CH Market2.4%

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

FoundedEmployeesCEOWebsite
19938,185Max Chuardhttps://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

How do Temenos's earnings and revenue compare to its market cap?
TEMN fundamental statistics
Market CapUS$6.37b
Earnings (TTM)US$180.13m
Revenue (TTM)US$978.25m

35.3x

P/E Ratio

6.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEMN income statement (TTM)
RevenueUS$978.25m
Cost of RevenueUS$324.20m
Gross ProfitUS$654.05m
Other ExpensesUS$473.91m
EarningsUS$180.13m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)2.51
Gross Margin66.86%
Net Profit Margin18.41%
Debt/Equity Ratio167.1%

How did TEMN perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

44%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TEMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation 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.

TEMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.3x
Enterprise Value/EBITDA25.9x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does TEMN's PE Ratio compare to its peers?

TEMN PE Ratio vs Peers
The above table shows the PE ratio for TEMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average95x
CDK CDK Global
27.1x29.2%US$6.4b
MANH Manhattan Associates
64.1x6.0%US$7.6b
SGE Sage Group
22.6x9.3%UK£6.6b
NCR NCR
266x114.1%US$4.5b
TEMN Temenos
35.3x19.0%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.

TEMN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.3x
Fair PE Ration/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

4/6

Future 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

2/6

Past 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.


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Financial Health

How is Temenos's financial position?

Financial Health Score

2/6

Financial 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

2/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.