Technology One Limited (TNE) AI Stock Analysis

• Market Cap: €12.84B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 96.3
• Beta (1Y): 1.26
• Revenue Growth: 17.52%
• EPS Growth: 20.78%
• Country: AU
• Employees: 1,300
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 327,368,530
• 10 Day Avg. Volume: 877,476
• 30 Day Avg. Volume: 1,056,287
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €41.68
• Price Target Upside: 7.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: AU$42.00 ▲(8.00% Upside)

Technology One Limited's strong financial performance is the primary driver of its stock score, showcasing robust growth and profitability. However, technical indicators suggest potential bearish trends, and the high P/E ratio indicates overvaluation concerns. The lack of earnings call data and corporate events limits additional insights.

Technology One Limited Business Overview & Revenue Model

Company Description

Technology One Limited researches, develops, markets, sells, implements, and supports integrated enterprise business software solutions worldwide. The company operates through Software and Consulting segments. It offers various business solutions, including enterprise asset management, human resource and payroll, financials, enterprise budgeting, supply chain, property and rating, student management, business intelligence, enterprise content management, performance planning, spatial, enterprise cash receipting, stakeholder management, timetabling and scheduling, and business process management. The company serves local government, education, government, health and community services, asset and project intensive, and financial and corporate organizations. Technology One Limited was incorporated in 1983 and is based in Fortitude Valley, Australia.

How the Company Makes Money

Technology One Limited generates revenue primarily through its SaaS offerings, where clients subscribe to use its software for a recurring fee. This subscription model provides a steady and predictable income stream. Key revenue streams include software licensing fees, maintenance fees, and professional services such as consulting and implementation. The company also benefits from long-term contracts with government entities and large organizations, which contribute to its financial stability. Strategic partnerships and continuous investment in research and development further enhance its competitive advantage and market share, driving revenue growth.

Technology One Limited Financial Statement Overview

Summary

Technology One Limited exhibits strong financial health with impressive revenue growth and high profitability. The income statement shows robust growth, the balance sheet indicates financial stability with low leverage, and cash flow metrics reflect efficient management and positive growth trends.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	506.54M	506.54M	429.38M	368.23M	311.30M	298.27M
Gross Profit	301.28M	445.38M	247.93M	205.11M	167.13M	146.41M
EBITDA	152.86M	224.29M	185.48M	152.27M	125.17M	102.60M
Net Income	118.01M	118.01M	102.88M	88.84M	72.69M	62.95M
Balance Sheet
Total Assets	757.44M	757.44M	636.74M	588.25M	509.14M	402.80M
Cash, Cash Equivalents and Short-Term Investments	278.69M	278.69M	223.26M	175.87M	144.21M	125.24M
Total Debt	59.67M	59.67M	33.16M	35.30M	33.39M	29.34M
Total Liabilities	378.18M	378.18M	386.82M	349.15M	318.91M	260.63M
Stockholders Equity	379.26M	379.26M	306.01M	239.10M	190.23M	142.17M
Cash Flow
Free Cash Flow	206.42M	120.11M	103.53M	75.51M	62.06M	58.67M
Operating Cash Flow	212.75M	212.75M	193.66M	142.80M	114.99M	103.51M
Investing Cash Flow	-291.12M	-291.12M	-115.13M	-67.28M	-63.16M	-45.06M
Financing Cash Flow	-64.70M	-64.70M	-56.22M	-43.86M	-32.87M	-38.25M

Technology One Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TNE, the sentiment is Positive. The current price of 38.89 is above the 20-day moving average (MA) of 38.23, below the 50-day MA of 38.94, and above the 200-day MA of 34.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:TNE.

Technology One Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCL	74 Outperform	AU$1.96B	55.04	35.71%	1.10%	5.11%	12.91%
BVS	70 Outperform	AU$1.49B	20.11	65.33%	7.82%	25.67%	744.90%
TNE	68 Neutral	€12.84B	96.29	37.44%	0.62%	17.52%	20.78%
IRE	66 Neutral	AU$1.60B	18.55	26.73%	2.41%	-4.10%	341.80%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NXL	57 Neutral	AU$1.01B	308.39	-3.19%	―	0.40%	-280.65%
RUL	53 Neutral	AU$1.05B	161.02	11.59%	―	9.76%	-28.92%

Technology One Limited Corporate Events

TechnologyOne Completes Strategic Share Acquisition

Technology One Limited has completed the on-market acquisition of 750,000 shares through its Employee Share Trust, as part of its Omnibus Incentive Plan. This strategic move supports the company’s commitment to delivering shares for vested options and rights, potentially enhancing employee engagement and aligning interests with stakeholders.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$38.10 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.

TechnologyOne Appoints New Company Secretary

Technology One Limited has appointed Mr. Matthew Thompson as the new Company Secretary, effective July 15, 2025. Mr. Thompson, who has been with TechnologyOne since June 2022 as Group General Counsel, brings extensive experience in corporate law, M&A, and governance. This appointment is expected to strengthen the company’s governance framework, enhancing its operational efficiency and industry positioning.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$38.10 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 New Equity Securities

Technology One Limited has announced the issuance of 52,436 ordinary fully paid securities, effective from July 9, 2025. This move is part of the company’s ongoing efforts to manage its equity securities, which could impact its market positioning and stakeholder interests by potentially increasing the company’s capital base.

The most recent analyst rating on (AU:TNE) stock is a Buy with a A$26.20 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

Technology One Limited announced the cessation of certain securities, specifically 10,419 options and 1,690 performance rights, due to the lapse of conditional rights as the conditions were not satisfied. This announcement indicates a potential impact on the company’s capital structure and may influence stakeholder perceptions regarding the company’s operational and financial strategies.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$38.10 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 Equity Securities for Employee Incentive

Technology One Limited has announced the issuance of 17,234 unquoted equity securities as part of an employee incentive scheme. This move is likely aimed at retaining talent and aligning employee interests with company performance, potentially strengthening its market position and operational effectiveness.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$38.10 price target. To see the full list of analyst forecasts on Technology One Limited stock, see the AU:TNE Stock Forecast page.