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Technology One Limited (AU:TNE)
ASX:TNE
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Technology One Limited (TNE) AI Stock Analysis

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AU:TNE

Technology One Limited

(Sydney:TNE)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
AU$41.00
▲(6.25% Upside)
Technology One Limited's strong financial performance is the primary driver of its stock score, reflecting robust growth and profitability. However, the high P/E ratio suggests overvaluation, and technical indicators provide a neutral outlook, balancing the overall score.

Technology One Limited (TNE) vs. iShares MSCI Australia ETF (EWA)

Technology One Limited Business Overview & Revenue Model

Company DescriptionTechnology One Limited (TNE) is an Australian software company that specializes in providing enterprise software solutions for various sectors, including government, education, and healthcare. Founded in 1987, the company offers a comprehensive suite of integrated software applications designed to help organizations manage their operations efficiently. Its core products include enterprise resource planning (ERP) software, cloud services, and business intelligence tools, which are tailored to meet the specific needs of its clients, enabling them to streamline processes, enhance productivity, and drive innovation.
How the Company Makes MoneyTechnology One Limited generates revenue primarily through the sale of software licenses, subscription services, and ongoing support and maintenance contracts. The company's key revenue streams include initial software sales, which provide a one-time payment, and recurring revenue from cloud-based subscriptions and maintenance agreements that ensure ongoing customer support. Additionally, Technology One benefits from strategic partnerships with various organizations and government entities, which often lead to large-scale contracts and recurring business. The transition to cloud services has also contributed positively to its earnings, as many clients prefer subscription models for flexibility and cost-effectiveness.

Technology One Limited Financial Statement Overview

Summary
Technology One Limited exhibits strong financial health with impressive revenue growth and high profitability. The balance sheet shows financial stability with low leverage, and cash flow metrics indicate robust cash generation and effective management.
Income Statement
85
Very Positive
Technology One Limited has shown impressive revenue growth, with a 17.98% increase from 2023 to 2024. The company maintains a strong gross profit margin of 87.89% and a net profit margin of 23.30%, indicating high profitability. The EBIT margin is at 35.83%, and the EBITDA margin is 44.28%, showcasing efficient operational performance. Overall, the income statement reflects robust growth and profitability, with minimal weaknesses.
Balance Sheet
79
Positive
The company has a solid equity base with an equity ratio of 50.06%, indicating good financial stability. The debt-to-equity ratio is 0.16, reflecting conservative leverage. The return on equity is 31.11%, highlighting strong returns for shareholders. The balance sheet reveals a healthy financial position with low leverage risks, although there's room for improving asset utilization.
Cash Flow
82
Very Positive
Operating cash flow is strong, supporting a free cash flow to net income ratio of 1.02. The company has achieved a free cash flow growth rate of 15.98%, demonstrating effective cash management. The operating cash flow to net income ratio is 1.80, further indicating robust cash generation relative to net income. Cash flow metrics reflect efficient cash flow management with positive growth trends.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue551.40M506.54M429.38M368.23M311.30M298.27M
Gross Profit325.13M445.38M179.04M205.11M167.13M146.41M
EBITDA173.40M224.29M185.48M152.27M125.17M102.60M
Net Income132.98M118.01M102.88M88.84M72.69M62.95M
Balance Sheet
Total Assets743.85M757.44M636.74M588.25M509.14M402.80M
Cash, Cash Equivalents and Short-Term Investments211.87M278.69M223.26M175.87M144.21M125.24M
Total Debt56.48M59.67M33.16M35.30M33.39M29.34M
Total Liabilities328.15M378.18M330.73M349.15M318.91M260.63M
Stockholders Equity415.69M379.26M306.01M239.10M190.23M142.17M
Cash Flow
Free Cash Flow244.77M120.11M103.53M75.51M62.06M58.67M
Operating Cash Flow247.23M212.75M193.66M142.80M114.99M103.51M
Investing Cash Flow-215.05M-291.12M-115.13M-67.28M-63.16M-45.06M
Financing Cash Flow-66.87M-64.70M-56.22M-43.86M-32.87M-38.25M

Technology One Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price38.59
Price Trends
50DMA
38.72
Negative
100DMA
39.45
Negative
200DMA
35.37
Positive
Market Momentum
MACD
0.02
Positive
RSI
47.32
Neutral
STOCH
32.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TNE, the sentiment is Negative. The current price of 38.59 is below the 20-day moving average (MA) of 38.99, below the 50-day MA of 38.72, and above the 200-day MA of 35.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.32 is Neutral, neither overbought nor oversold. The STOCH value of 32.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TNE.

Technology One Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$1.33B17.8765.33%8.85%25.67%744.90%
AU$1.80B50.6635.71%1.14%5.11%12.91%
€12.70B95.2437.44%0.62%17.52%20.78%
$37.18B12.37-10.20%1.83%8.50%-7.62%
€1.63B18.4026.73%2.36%-4.10%341.80%
AU$1.08B379.69<0.01%-29.99%-66.84%
AU$977.20M-104.29-3.19%0.40%-280.65%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TNE
Technology One Limited
38.59
14.63
61.05%
AU:IRE
IRESS Limited
8.75
-1.06
-10.77%
AU:BVS
Bravura Solutions Limited
3.04
1.73
132.06%
AU:OCL
Objective Corporation Limited
19.26
3.80
24.58%
AU:NXL
Nuix Ltd.
2.44
-4.78
-66.20%
AU:RUL
RPMGlobal Holdings Ltd
4.86
1.91
64.75%

Technology One Limited Corporate Events

Technology One Limited Issues Unquoted Securities for Employee Incentive
Oct 14, 2025

Technology One Limited announced the issuance of unquoted securities, including options and performance rights, as part of an employee incentive scheme. This move is likely aimed at enhancing employee engagement and retention, potentially strengthening the company’s operational capabilities and market position.

The most recent analyst rating on (AU:TNE) stock is a Buy with a A$44.50 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

TechnologyOne Launches PLUS: A Revolutionary AI System for Enterprise Efficiency
Oct 9, 2025

TechnologyOne has launched PLUS, a revolutionary AI system designed to enhance enterprise software efficiency and capabilities. PLUS integrates a natural language interface with AI to streamline tasks across an organization, offering significant benefits to sectors such as education and public services. Built in Brisbane, PLUS promises to transform organizational operations by simplifying tasks, providing actionable insights, and improving productivity without the need for training or installation. This innovation marks a significant milestone in TechnologyOne’s mission to simplify complex systems and positions the company as a leader in AI-driven enterprise solutions.

The most recent analyst rating on (AU:TNE) stock is a Buy with a A$40.99 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

Technology One Limited Appoints New Director, Enhancing Governance
Oct 1, 2025

Technology One Limited has announced the appointment of Debra Eckersley as a new director, effective from October 1, 2025. This appointment is accompanied by the disclosure of her interests in the company’s securities, which include 6,000 ordinary shares held jointly and 179 shares held through a family trust. This move is expected to strengthen the company’s governance and potentially influence its strategic direction, reflecting positively on its market positioning.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$40.00 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

BlackRock Group Ceases Substantial Holding in Technology One
Sep 28, 2025

Technology One Limited has announced that BlackRock Group, including BlackRock Inc. and its subsidiaries, has ceased to be a substantial holder in the company. This change in substantial holding may impact the company’s shareholder dynamics and could influence voting interests, potentially affecting Technology One’s strategic decisions and market positioning.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$40.00 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

Technology One Limited Announces Cessation of Securities
Sep 25, 2025

Technology One Limited announced the cessation of certain securities due to the lapse of conditional rights. A total of 8,257 options and 3,413 performance rights have ceased because the conditions for these securities were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders regarding the company’s financial strategies and market positioning.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$38.50 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

Technology One Limited Issues Unquoted Securities for Employee Incentives
Sep 25, 2025

Technology One Limited announced the issuance of 146,607 unquoted securities under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees, potentially impacting its operational dynamics and aligning employee interests with company growth.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$38.50 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

BlackRock Group Ceases Substantial Holding in Technology One Limited
Sep 22, 2025

Technology One Limited has announced that BlackRock Group, including BlackRock Inc. and its subsidiaries, has ceased to be a substantial holder in the company. This change in shareholding could impact the company’s market perception and stakeholder dynamics, as BlackRock’s divestment might influence investor confidence and market strategies.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$40.00 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025