Technology One Limited (AU:TNE)
ASX:TNE
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Technology One Limited
(Sydney:TNE)
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Rating:68Neutral
Price Target:
AU$34.00
▲(10.28% Upside)
Action:Reiterated
Date:03/07/26
The score is driven primarily by strong financial performance (high margins, steady growth, low leverage), partially offset by expensive valuation (very high P/E and low yield). Technicals are mixed: improving short-term trend versus weaker longer-term trend, keeping the overall score in the upper-middle range.
Positive Factors
High Profitability
Very high gross and operating margins reflect strong product economics and pricing power in enterprise software. Durable margin levels support reinvestment in R&D and sales, enable steady operating cash generation, and provide a buffer versus cyclical revenue swings over the medium term.
Negative Factors
Declining Free Cash Flow Growth
A meaningful slowdown in free cash flow growth can constrain the company's ability to fund organic investment, accelerate cloud migration, or return capital to shareholders. If persistent, it could limit strategic optionality and increase sensitivity to operating disappointments over 2-6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Very high gross and operating margins reflect strong product economics and pricing power in enterprise software. Durable margin levels support reinvestment in R&D and sales, enable steady operating cash generation, and provide a buffer versus cyclical revenue swings over the medium term.
Read all positive factors
Technology One Limited (TNE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$10.08B
Dividend Yield0.83%
Average Volume (3M)1.08M
Price to Earnings (P/E)70.4
Beta (1Y)1.40
Revenue Growth14.48%
EPS Growth6.31%
CountryAU
Employees1,300
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.43
Shares Outstanding327,368,530
10 Day Avg. Volume889,707
30 Day Avg. Volume1,081,997
Financial Highlights & Ratios
PEG Ratio5.48
Price to Book (P/B)27.88
Price to Sales (P/S)21.00
P/FCF Ratio66.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$32.05Price Target Upside3.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.5
Revenue Forecast (FY)AU$681.24M
Technology One Limited Business Overview & Revenue Model
Company Description
Technology One Limited is a global provider dedicated to the full lifecycle of integrated enterprise business software solutions, from initial research and development through to sales, implementation, and ongoing support. The company operates pri...
How the Company Makes Money
Technology One makes money mainly by licensing its enterprise software and providing related services. Its core revenue stream is recurring software revenue from customers subscribing to (or licensing) its integrated applications, increasingly thr...
Technology One Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 631.23M | 598.50M | 506.54M | 429.38M | 368.23M | 311.30M |
| Gross Profit | 253.54M | 516.56M | 445.38M | 179.04M | 205.11M | 167.13M |
| EBITDA | 274.71M | 265.85M | 224.29M | 185.48M | 152.27M | 125.17M |
| Net Income | 141.47M | 137.65M | 118.01M | 102.88M | 88.84M | 72.69M |
Balance Sheet | ||||||
| Total Assets | 814.85M | 891.40M | 757.44M | 636.74M | 588.25M | 509.14M |
| Cash, Cash Equivalents and Short-Term Investments | 245.46M | 319.64M | 278.69M | 223.26M | 175.87M | 144.21M |
| Total Debt | 49.45M | 53.38M | 59.67M | 33.16M | 35.30M | 33.39M |
| Total Liabilities | 386.71M | 440.70M | 378.18M | 330.73M | 349.15M | 318.91M |
| Stockholders Equity | 428.13M | 450.70M | 379.26M | 306.01M | 239.10M | 190.23M |
Cash Flow | ||||||
| Free Cash Flow | 302.84M | 188.14M | 120.11M | 103.53M | 75.51M | 62.06M |
| Operating Cash Flow | 305.52M | 294.53M | 212.75M | 193.66M | 142.80M | 114.99M |
| Investing Cash Flow | -182.33M | -150.44M | -291.12M | -115.13M | -67.28M | -63.16M |
| Financing Cash Flow | -149.97M | -103.45M | -64.70M | -56.22M | -43.86M | -32.87M |
Technology One Limited Technical Analysis
Neutral
30.83
Price Trends
29.59
Positive
27.41
Positive
30.26
Negative
Market Momentum
0.45
Positive
46.03
Neutral
24.00
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 30.83 is below the 20-day moving average (MA) of 31.09, above the 50-day MA of 29.59, and above the 200-day MA of 30.26, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 24.00 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$977.29M | 24.84 | 42.94% | 10.16% | -12.00% | -45.47% | |
71 Outperform | AU$12.22B | 84.44 | 3.68% | ― | 27.32% | -30.84% | |
69 Neutral | AU$916.50M | 14.00 | 17.13% | 1.85% | 11.63% | 1754.91% | |
68 Neutral | AU$10.08B | 70.39 | 32.19% | 0.83% | 14.48% | 6.31% | |
66 Neutral | AU$984.89M | 35.65 | 25.65% | 1.27% | 6.51% | 15.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$194.00M | 157.36 | 0.87% | ― | 6.58% | ― |
* Technology Sector Average
AU:TNE
Technology One Limited
29.97
-10.09
-25.19%
AU:HSN
Hansen Technologies Limited
4.40
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Xero Limited
71.88
-121.89
-62.90%
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ReadyTech Holdings Ltd.
1.57
-0.63
-28.54%
AU:BVS
Bravura Solutions Limited
2.15
0.09
4.62%
AU:OCL
Objective Corporation Limited
10.20
-7.84
-43.46%
Technology One Limited Corporate Events
Technology One issues 182,871 new shares from conversion of unquoted securities
May 21, 2026
Technology One Limited has notified the market of the issue of 182,871 ordinary fully paid shares following the conversion or exercise of previously unquoted securities. The new shares, issued on 20 May 2026, modestly expand the company’s eq...
TechnologyOne Showcases AI Strategy at Macquarie Conference 2026
May 6, 2026
TechnologyOne Limited presented its artificial intelligence strategy and product capabilities to investors at the 2026 Macquarie Conference in Sydney, underscoring the company’s focus on embedding AI into its enterprise software offerings. T...
Pinnacle Exits Substantial Holder Position in Technology One
Apr 15, 2026
Pinnacle Investment Management Group and its subsidiaries have notified Technology One Limited that they have ceased to be a substantial holder in the software company as of 10 April 2026. The change, formally lodged with the company on 15 April, ...
Technology One Issues New Unquoted Options Under Employee Incentive Scheme
Apr 15, 2026
Technology One Limited has notified the market of a new issue of unquoted equity securities under its employee incentive scheme. The issuance involves 187,532 options, identified by the ASX security code TNEAI, which have various expiry dates and ...
BlackRock Ceases to Be Substantial Holder in Technology One
Apr 8, 2026
BlackRock Group has lodged a notice under Australia’s Corporations Act stating it has ceased to be a substantial shareholder in Technology One Ltd. The change reflects a reduction in BlackRock’s relevant voting interest below the subst...
Technology One updates managing director’s equity holdings after new incentive grants
Mar 27, 2026
Technology One Limited has disclosed changes to managing director Edward Chung’s holdings, reflecting a mix of new long-term incentive awards and option exercises. Following shareholder approvals at the company’s 2025 and 2026 annual m...
Technology One Issues New Performance Rights Under Employee Incentive Scheme
Mar 27, 2026
Technology One Limited has notified the market of the issue of 10,815 unquoted performance rights under its employee incentive scheme, with an issue date of 27 March 2026. The additional rights, which are not intended to be quoted on the ASX, rein...
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.