Technology One Limited (TNE) AI Stock Analysis

• Market Cap: AU$13.27B
• Dividend Yield: 0.5%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 99.5
• Beta (1Y): 1.29
• Revenue Growth: 17.52%
• EPS Growth: 20.78%
• Country: AU
• Employees: 1,300
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 327,368,530
• 10 Day Avg. Volume: 939,503
• 30 Day Avg. Volume: 1,051,088
• PEG Ratio: 1.77
• Price to Book (P/B): 14.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 45.33
• 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: AU$37.98
• Price Target Upside: -6.34% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 65 Neutral
• Price Target: AU$45.00 ▲(10.97%Upside)

Technology One Limited demonstrates a strong financial foundation with robust growth prospects, supported by high profitability and effective cash flow management. However, the high P/E ratio suggests potential overvaluation, and technical indicators warn of overbought conditions, which might lead to short-term volatility.

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 the sale of its enterprise software solutions. The company's revenue model is based on software licensing fees, which include both initial license fees and annual subscription fees for cloud-based services. Additionally, Technology One earns money from customer support and maintenance services, which provide ongoing technical support and updates for their software products. The company also offers consulting services, helping clients implement and customize their ERP systems to meet specific organizational needs. Technology One's strategic partnerships and long-term contracts with public and private sector clients contribute significantly to its steady earnings stream.

Technology One Limited Financial Statement Overview

Summary

Technology One Limited exhibits strong financial health, characterized by impressive revenue growth, high profitability, and robust cash flow management. Strong equity base and low leverage further enhance financial stability.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
506.54M	429.38M	368.23M	311.30M	298.27M
	Gross Profit
445.38M	247.93M	205.11M	167.13M	146.41M
	EBIT
146.63M	119.99M	113.01M	98.62M	83.21M
	EBITDA
224.29M	185.48M	152.27M	125.17M	102.60M
	Net Income Common Stockholders
118.01M	102.88M	88.84M	72.69M	62.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
278.69M	223.26M	175.87M	144.21M	125.24M
	Total Assets
757.44M	636.74M	588.25M	509.14M	402.80M
	Total Debt
59.67M	33.16M	35.30M	33.39M	29.34M
	Net Debt
4.46M	-165.11M	-140.56M	-110.82M	-95.90M
	Total Liabilities
378.18M	386.82M	349.15M	318.91M	260.63M
	Stockholders Equity
379.26M	306.01M	239.10M	190.23M	142.17M
Cash Flow		Free Cash Flow
120.11M	103.53M	75.51M	62.06M	58.67M
	Operating Cash Flow
212.75M	193.66M	142.80M	114.99M	103.51M
	Investing Cash Flow
-291.12M	-115.13M	-67.28M	-63.16M	-45.06M
	Financing Cash Flow
-64.70M	-56.22M	-43.86M	-32.87M	-38.25M

Technology One Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 40.55 is below the 20-day moving average (MA) of 40.80, above the 50-day MA of 34.72, and above the 200-day MA of 29.57, indicating a neutral trend. The MACD of 1.63 indicates Positive momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	AU$1.74B	54.21	36.92%	0.99%	7.00%	19.41%
RUL	73 Outperform	AU$657.74M	101.02	11.59%	―	9.76%	-28.92%
BVS	66 Neutral	AU$995.35M	13.88	57.04%	2.88%	18.63%	―
TNE	65 Neutral	AU$13.27B	99.53	37.44%	0.50%	17.52%	20.78%
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
IRE	61 Neutral	€1.53B	17.34	27.46%	1.20%	-3.98%	―
NXL	56 Neutral	AU$747.46M	308.39	-0.19%	―	17.64%	96.99%

Technology One Limited Corporate Events

Technology One Limited Announces Change in Substantial Holder Interests

Technology One Limited has announced a change in the interests of a substantial holder, with State Street Bank and Trust Company and its affiliates holding significant voting power in the company. This change in substantial holding could impact the company’s governance and decision-making processes, potentially influencing its market strategy and stakeholder relations.

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’s Strategic Share Acquisition for Employee Incentives

Technology One Limited announced that its Employee Share Trust will acquire 750,000 ordinary shares on the market to fulfill future obligations under the company’s Omnibus Incentive Plan. This strategic move aligns with the company’s compliance with market regulations and aims to strengthen its employee incentive framework, potentially enhancing stakeholder confidence and supporting its market 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 Announces Dividend Distribution

Technology One Limited has announced a dividend distribution of AUD 0.066 per share for its ordinary fully paid securities. The dividend relates to the six-month period ending on March 31, 2025, with the ex-date set for May 29, 2025, and the payment date scheduled for June 13, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively influence its market position and stakeholder confidence.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$16.50 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 Reports Strong Half-Year Financial Results

Technology One Limited reported a significant financial performance for the half-year ending March 31, 2025, with a 19% increase in revenue to $285.7 million and a 31% rise in net profit after tax to $63 million compared to the previous year. The company declared an interim dividend of 6.60 cents per share, reflecting its strong operational results and commitment to returning value to shareholders, with the dividend payable on June 13, 2025.

The most recent analyst rating on (AU:TNE) stock is a Hold with a A$16.50 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 Announces Cessation of Securities

Technology One Limited announced the cessation of 274,870 securities due to the lapse of conditional rights, as the conditions 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 future financial strategies.

Technology One Limited Issues Unquoted Equity Securities

Technology One Limited has announced the issuance of unquoted equity securities, including options and performance rights, as part of its employee incentive scheme. This move is likely aimed at aligning employee interests with company goals, potentially enhancing motivation and retention, and may influence the company’s operational dynamics and stakeholder relations.

State Street Corporation Alters Stake in Technology One Limited

Technology One Limited has announced a change in the interests of a substantial holder, State Street Corporation and its subsidiaries, which now hold a 6.10% voting power in the company. This change in voting power reflects the dynamic nature of shareholding patterns and could influence the company’s decision-making processes, potentially impacting its strategic direction and stakeholder interests.

Technology One Limited Announces Cessation of Securities

Technology One Limited announced the cessation of certain securities, specifically 41,718 options and 5,917 performance rights, due to the lapse of conditional rights as the conditions were not met. This announcement reflects a routine adjustment in the company’s issued capital, which may impact stakeholders’ perceptions of the company’s financial strategies and operational adjustments.