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Technology One Limited (AU:TNE)
ASX:TNE

Technology One Limited (TNE) AI Stock Analysis

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AU:TNE

Technology One Limited

(Sydney:TNE)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
AU$31.00
▲(12.12% Upside)
Technology One Limited's strong financial performance is a key strength, supported by robust revenue growth and profitability. However, technical indicators suggest bearish momentum, and the stock's high valuation limits its attractiveness. Monitoring cost management and cash flow trends will be crucial for sustained performance.
Positive Factors
Revenue Growth
Consistent revenue growth indicates successful market expansion and product adoption, supporting long-term business sustainability.
Balance Sheet Health
A strong balance sheet with low leverage enhances financial stability and flexibility, allowing for strategic investments and growth.
Profitability
High profitability margins reflect efficient operations and pricing power, contributing to sustained earnings and shareholder value.
Negative Factors
Free Cash Flow Decline
A decline in free cash flow growth could challenge the company's ability to maintain cash reserves and fund future investments.
Cost Pressures
Decreasing gross margins may indicate rising costs, potentially impacting profitability if not managed effectively.
Cash Flow Coverage
While cash generation is strong, the coverage ratio suggests potential constraints in covering net income, affecting liquidity management.

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 consistent revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow generation is solid despite a recent decline in free cash flow growth. Monitoring cost management and cash flow trends will be crucial for sustained performance.
Income Statement
85
Very Positive
Technology One Limited has demonstrated strong revenue growth with an 8.54% increase in the latest year, supported by robust gross and net profit margins of 86.31% and 22.99%, respectively. The EBIT and EBITDA margins are also healthy at 30.92% and 44.42%, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.
Balance Sheet
80
Positive
The company's balance sheet is solid, with a low debt-to-equity ratio of 0.12, reflecting conservative leverage. The return on equity is strong at 30.54%, indicating effective use of shareholder funds. The equity ratio of 50.55% suggests a stable financial structure, though a slight increase in debt levels could be monitored.
Cash Flow
75
Positive
Operating cash flow is robust, with a coverage ratio of 0.75, indicating strong cash generation relative to net income. However, the free cash flow growth rate has declined by 23.13%, which could signal potential challenges in maintaining cash reserves. The free cash flow to net income ratio remains healthy at 0.64, suggesting adequate cash flow conversion.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue598.50M598.50M506.54M429.38M368.23M311.30M
Gross Profit281.14M516.56M445.38M179.04M205.11M167.13M
EBITDA225.32M265.85M224.29M185.48M152.27M125.17M
Net Income137.65M137.65M118.01M102.88M88.84M72.69M
Balance Sheet
Total Assets891.40M891.40M757.44M636.74M588.25M509.14M
Cash, Cash Equivalents and Short-Term Investments319.64M319.64M278.69M223.26M175.87M144.21M
Total Debt53.38M53.38M59.67M33.16M35.30M33.39M
Total Liabilities440.70M440.70M378.18M330.73M349.15M318.91M
Stockholders Equity450.70M450.70M379.26M306.01M239.10M190.23M
Cash Flow
Free Cash Flow291.86M188.14M120.11M103.53M75.51M62.06M
Operating Cash Flow294.53M294.53M212.75M193.66M142.80M114.99M
Investing Cash Flow-150.44M-150.44M-291.12M-115.13M-67.28M-63.16M
Financing Cash Flow-103.45M-103.45M-64.70M-56.22M-43.86M-32.87M

Technology One Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.65
Price Trends
50DMA
34.45
Negative
100DMA
36.51
Negative
200DMA
35.26
Negative
Market Momentum
MACD
-1.80
Negative
RSI
28.03
Positive
STOCH
5.06
Positive
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 27.65 is below the 20-day moving average (MA) of 29.73, below the 50-day MA of 34.45, and below the 200-day MA of 35.26, indicating a bearish trend. The MACD of -1.80 indicates Negative momentum. The RSI at 28.03 is Positive, neither overbought nor oversold. The STOCH value of 5.06 is Positive, 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
71
Outperform
AU$1.30B17.5165.33%10.04%25.67%744.90%
65
Neutral
AU$1.77B49.8535.71%1.31%5.11%12.91%
65
Neutral
€1.66B18.7826.73%2.40%-4.10%341.80%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
€12.06B90.4532.67%0.86%18.16%16.25%
53
Neutral
AU$1.08B380.47<0.01%-29.99%-66.84%
43
Neutral
AU$773.06M-82.50-3.19%0.40%-280.65%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TNE
Technology One Limited
27.65
-2.52
-8.36%
AU:IRE
IRESS Limited
8.68
-0.47
-5.16%
AU:BVS
Bravura Solutions Limited
2.61
0.70
36.65%
AU:OCL
Objective Corporation Limited
16.77
0.35
2.13%
AU:NXL
Nuix Ltd.
1.78
-4.52
-71.78%
AU:RUL
RPMGlobal Holdings Ltd
4.92
1.94
65.10%

Technology One Limited Corporate Events

Technology One Limited Issues New Equity Securities
Dec 4, 2025

Technology One Limited has announced the issuance of 99,412 fully paid ordinary securities, effective December 3, 2025. This move signifies the company’s ongoing efforts to manage its equity structure and may impact its market positioning by potentially increasing shareholder value and enhancing liquidity.

Technology One Unveils 2025 Sustainability Report, Emphasizing Innovation and Simplicity
Nov 24, 2025

Technology One Limited has released its Sustainability Report for 2025, highlighting its commitment to simplicity and innovation in its software offerings. The report outlines the company’s strategic focus on delivering intuitive user experiences and high-level security across its 500+ modules with over 10,000 capabilities. This approach is designed to anticipate user needs and streamline processes, reinforcing Technology One’s position as a leader in providing industry-specific solutions. The report also emphasizes the company’s dedication to sustainability and responsible business practices, which are integral to its operations and stakeholder engagement.

Technology One Limited Issues New Equity Securities
Nov 20, 2025

Technology One Limited has announced the issuance of 15,000 ordinary fully paid securities as of November 20, 2025. This move signifies the company’s ongoing efforts to manage its equity structure, potentially impacting its market positioning and providing insights into its strategic financial decisions.

Technology One Limited Announces Cessation of Securities
Nov 20, 2025

Technology One Limited announced the cessation of certain securities due to the lapse of conditional rights, as the conditions for these securities were not met. This announcement may impact the company’s capital structure and could influence investor perception regarding the company’s operational performance and strategic execution.

Technology One Limited Issues New Performance Rights to Employees
Nov 20, 2025

Technology One Limited has announced the issuance of 11,507 performance rights as part of an employee incentive scheme. This move is indicative of the company’s commitment to retaining talent and aligning employee interests with corporate goals, potentially strengthening its market position and operational effectiveness.

Technology One Releases 2025 Corporate Governance Statement
Nov 18, 2025

Technology One Limited has released its Corporate Governance Statement for the financial year ending 30 September 2025, which has been approved by the board. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This disclosure is crucial for stakeholders as it provides insights into the company’s governance practices, potentially impacting investor confidence and market positioning.

Technology One Limited Announces Dividend Distribution
Nov 18, 2025

Technology One Limited has announced a dividend distribution of AUD 0.30 per share for its ordinary fully paid securities, with the payment date set for December 12, 2025. This announcement reflects the company’s financial performance for the six-month period ending September 30, 2025, and may have implications for stakeholders regarding the company’s profitability and shareholder returns.

TechnologyOne Limited Releases FY25 Full-Year Results
Nov 18, 2025

TechnologyOne Limited has released its full-year results for FY25, highlighting a series of presentations conducted to discuss its financial performance. The company emphasizes the general nature of the information provided, cautioning that it should not be taken as investment advice. The release includes non-IFRS measures to assess ongoing performance, reflecting TechnologyOne’s commitment to transparency and stakeholder engagement.

Technology One Limited Reports Strong Financial Growth in FY2025
Nov 18, 2025

Technology One Limited has reported a significant increase in its financial performance for the fiscal year 2025. The company’s annual recurring revenue rose by 18%, reaching $554.6 million, while profit before tax increased by 19% to $181.5 million. The UK market saw an impressive 49% growth in annual recurring revenue. These results highlight the company’s strong market positioning and its ability to deliver consistent growth, benefiting stakeholders and enhancing its competitive edge in the industry.

Technology One Achieves Record Financial Performance and Sets Ambitious Growth Targets
Nov 18, 2025

Technology One Limited has reported its 16th consecutive year of record financial performance, with a 19% increase in profit before tax, surpassing its guidance. The company achieved a total annual recurring revenue (ARR) of $554.6 million, marking an 18% increase, and set a new long-term target of $1 billion ARR by FY30. The success of its SaaS+ model, which simplifies implementation processes, has been a key driver of growth, particularly in the UK market where ARR increased by 49%. The company also completed the acquisition of CourseLoop, enhancing its higher education product suite. With strong cash flow generation and strategic R&D investments, Technology One aims to double its size every five years.

Technology One Limited Reports Strong Financial Growth in 2025
Nov 17, 2025

Technology One Limited has reported a strong financial performance for the year ending 30 September 2025, with an 18% increase in revenue from ordinary activities to $598.5 million and a 17% rise in net profit attributable to members, reaching $137.6 million. The company announced dividends for the current period, including a special dividend, reflecting its robust financial health and commitment to returning value to shareholders. The increase in earnings per share and dividends indicates a positive outlook for the company’s stakeholders.

Technology One Limited Issues Unquoted Equity Securities
Oct 31, 2025

Technology One Limited has announced the issuance of unquoted equity securities, including options and performance rights, as part of an employee incentive scheme. This move is likely aimed at enhancing employee engagement and aligning their interests with the company’s growth objectives, potentially strengthening its market position.

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.

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.

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.

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.

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.

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.

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.

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: Dec 04, 2025