Technology One Limited (TNE) AI Stock Analysis

• Market Cap: €12.70B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 95.2
• Beta (1Y): 1.27
• 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: 889,707
• 30 Day Avg. Volume: 1,081,997
• PEG Ratio: 5.30
• Price to Book (P/B): 20.61
• Price to Sales (P/S): 15.43
• P/FCF Ratio: 65.07
• 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: €43.24
• Price Target Upside: 12.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 65 Neutral
• 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 Business Overview & Revenue Model

Company Description

Technology 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 Money

Technology 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

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	551.40M	506.54M	429.38M	368.23M	311.30M	298.27M
Gross Profit	325.13M	445.38M	179.04M	205.11M	167.13M	146.41M
EBITDA	173.40M	224.29M	185.48M	152.27M	125.17M	102.60M
Net Income	132.98M	118.01M	102.88M	88.84M	72.69M	62.95M
Balance Sheet
Total Assets	743.85M	757.44M	636.74M	588.25M	509.14M	402.80M
Cash, Cash Equivalents and Short-Term Investments	211.87M	278.69M	223.26M	175.87M	144.21M	125.24M
Total Debt	56.48M	59.67M	33.16M	35.30M	33.39M	29.34M
Total Liabilities	328.15M	378.18M	330.73M	349.15M	318.91M	260.63M
Stockholders Equity	415.69M	379.26M	306.01M	239.10M	190.23M	142.17M
Cash Flow
Free Cash Flow	244.77M	120.11M	103.53M	75.51M	62.06M	58.67M
Operating Cash Flow	247.23M	212.75M	193.66M	142.80M	114.99M	103.51M
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 Price: 38.59
• 50DMA: Negative
• 100DMA: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	―	AU$1.33B	17.87	65.33%	8.85%	25.67%	744.90%
OCL	―	AU$1.80B	50.66	35.71%	1.14%	5.11%	12.91%
TNE	―	€12.70B	95.24	37.44%	0.62%	17.52%	20.78%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IRE	―	€1.63B	18.40	26.73%	2.36%	-4.10%	341.80%
RUL	―	AU$1.08B	379.69	<0.01%	―	-29.99%	-66.84%
NXL	―	AU$977.20M	-104.29	-3.19%	―	0.40%	-280.65%

Technology One Limited Corporate Events

Technology One Limited Issues Unquoted Securities for Employee Incentive

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

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

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

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

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

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

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.