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$29.00
â–²(3.94% Upside)
Action:ReiteratedDate: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
Recurring SaaS revenue
Technology One’s business model centers on subscription SaaS and multi-year contracts, producing durable, predictable revenue and high customer lifetime value. Persistent recurring fees plus ERP switching costs support stable cashflows and easier forecasting for 2–6+ months horizons.
Negative Factors
Free cash flow decline
A 23% drop in FCF growth weakens the company’s internal funding for cloud infrastructure, R&D and implementation capacity. Even with reasonable cash conversion, sustained FCF decline could constrain capital allocation and increase reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS revenue
Technology One’s business model centers on subscription SaaS and multi-year contracts, producing durable, predictable revenue and high customer lifetime value. Persistent recurring fees plus ERP switching costs support stable cashflows and easier forecasting for 2–6+ months horizons.
Read all positive factors
Technology One Limited (TNE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.13B
Dividend Yield0.83%
Average Volume (3M)1.08M
Price to Earnings (P/E)91.3
Beta (1Y)1.47
Revenue Growth18.16%
EPS Growth16.25%
CountryAU
Employees1,300
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.23
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$33.38Price Target Upside19.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.5
Revenue Forecast (FY)AU$688.88M
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,...
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-t...
Technology One Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
75
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 598.50M | 506.54M | 429.38M | 368.23M | 311.30M |
| Gross Profit | 516.56M | 445.38M | 179.04M | 205.11M | 167.13M |
| EBITDA | 265.85M | 224.29M | 185.48M | 152.27M | 125.17M |
| Net Income | 137.65M | 118.01M | 102.88M | 88.84M | 72.69M |
Balance Sheet | |||||
| Total Assets | 891.40M | 757.44M | 636.74M | 588.25M | 509.14M |
| Cash, Cash Equivalents and Short-Term Investments | 319.64M | 278.69M | 223.26M | 175.87M | 144.21M |
| Total Debt | 53.38M | 59.67M | 33.16M | 35.30M | 33.39M |
| Total Liabilities | 440.70M | 378.18M | 330.73M | 349.15M | 318.91M |
| Stockholders Equity | 450.70M | 379.26M | 306.01M | 239.10M | 190.23M |
Cash Flow | |||||
| Free Cash Flow | 188.14M | 120.11M | 103.53M | 75.51M | 62.06M |
| Operating Cash Flow | 294.53M | 212.75M | 193.66M | 142.80M | 114.99M |
| Investing Cash Flow | -150.44M | -291.12M | -115.13M | -67.28M | -63.16M |
| Financing Cash Flow | -103.45M | -64.70M | -56.22M | -43.86M | -32.87M |
Technology One Limited Technical Analysis
Positive
27.90
Price Trends
25.20
Positive
27.30
Positive
33.06
Negative
Market Momentum
0.57
Negative
59.97
Neutral
53.70
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 27.9 is above the 20-day moving average (MA) of 26.77, above the 50-day MA of 25.20, and below the 200-day MA of 33.06, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$932.46M | 11.05 | 42.94% | 10.16% | 25.67% | 744.90% | |
68 Neutral | AU$9.13B | 91.29 | 31.77% | 0.83% | 18.16% | 16.25% | |
66 Neutral | AU$1.14B | 21.16 | 25.65% | 1.27% | 5.11% | 12.91% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | AU$1.28B | 19.91 | 19.57% | 2.47% | -4.10% | 341.80% | |
54 Neutral | AU$440.21M | 13.57 | 4.13% | ― | 0.40% | -280.65% |
* Technology Sector Average
AU:TNE
Technology One Limited
27.90
0.26
0.93%
AU:IRE
IRESS Limited
6.97
-0.81
-10.46%
AU:BVS
Bravura Solutions Limited
2.08
-0.01
-0.57%
AU:OCL
Objective Corporation Limited
11.83
-2.92
-19.82%
AU:NXL
Nuix Ltd.
1.32
-1.62
-55.12%
Technology One Limited Corporate Events
Technology One Dropped From S&P/ASX 50 in March 2026 Rebalance
Mar 6, 2026
Technology One Limited, a major Australian enterprise software provider focused on business and financial management systems for public and private sector clients, has been a constituent of key SP/ASX equity indices that serve as benchmarks for bo...
Hyperion Asset Management Ceases to Be Substantial Holder in Technology One
Mar 5, 2026
Technology One Limited has disclosed that Hyperion Asset Management Limited has ceased to be a substantial shareholder in the company, as required under Australian Corporations Act reporting rules. The notice records that Hyperion’s relevant...
Technology One issues 7,700 new shares on conversion of unquoted securities
Mar 3, 2026
Technology One Limited has notified the market of the issue of 7,700 new ordinary fully paid shares following the exercise or conversion of previously unquoted securities. The new shares, issued on 2 March 2026, reflect the conversion of unquoted ...
TechnologyOne launches AI-powered Guide to boost access to public and education services
Feb 25, 2026
TechnologyOne has unveiled Guide, a new AI-powered product aimed at giving residents and students faster, simpler access to essential public services and higher education support. The launch, showcased to investors in London, extends the company&#...
Technology One director Philip Davis acquires first parcel of company shares
Feb 24, 2026
Technology One Limited has disclosed a change in director interests following an on‑market share purchase by board member Philip Davis. The filing, made under ASX listing rule 3.19A.2, outlines the acquisition as part of routine corporate go...
Technology One Issues 248,287 Unquoted Options Under Employee Incentive Scheme
Feb 20, 2026
Technology One Limited has notified the market of the issue of 248,287 unquoted options under its employee incentive scheme, all carrying various exercise prices and expiry dates. The issuance, which is not intended to be quoted on the ASX, reinfo...
Technology One director Debra Eckersley lifts indirect shareholding
Feb 20, 2026
Technology One Limited has disclosed a change in the relevant interests of director Debra Eckersley in the company’s fully paid ordinary shares. The notice details that her indirect holdings through Pindari Avenue Pty Ltd as trustee for the ...
Technology One Reports Lapse of Options and Performance Rights
Feb 11, 2026
Technology One Limited has reported the cessation of certain equity-based incentives, with 30,270 options and 3,800 performance rights lapsing after the relevant conditions were not met or became incapable of being satisfied. The lapse slightly re...
Technology One Issues 41,785 New Ordinary Shares on Option Conversion
Feb 3, 2026
Technology One Limited has issued 41,785 new ordinary fully paid shares following the conversion of previously unquoted options or other convertible securities, with the new securities dated 30 January 2026. The modest increase in issued capital r...
Technology One Issues 33,000 New Shares Following Conversion of Unquoted Securities
Jan 29, 2026
Technology One Limited has notified the market of the issue of 33,000 fully paid ordinary shares following the exercise or conversion of previously unquoted securities. The transaction, effective 29 January 2026, represents a small increase in the...
Technology One Issues 172,504 New Shares on Conversion of Unquoted Securities
Jan 21, 2026
Technology One Limited has notified the ASX that 172,504 ordinary fully paid shares have been issued following the exercise or conversion of previously unquoted options or other convertible securities. The move modestly increases the company’...
TechnologyOne Corrects Proxy Form Error Ahead of 2025 AGM
Jan 14, 2026
TechnologyOne has released the notice of its 2025 Annual General Meeting along with an amended sample proxy form after identifying an administrative error in the version lodged the previous day. The company clarified that the earlier proxy form in...
Technology One Issues 7,403 New Shares After Conversion of Unquoted Securities
Jan 9, 2026
Technology One Limited has issued 7,403 new fully paid ordinary shares following the conversion or exercise of previously unquoted securities, as notified to the ASX on 9 January 2026. The relatively small issuance reflects routine equity conversi...
Technology One Limited Issues New Equity Securities to Boost Employee Incentives
Dec 12, 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 retention, potential...
TechnologyOne Reaffirms Confidence in CFO Amid CTM Concerns
Dec 8, 2025
TechnologyOne has addressed shareholder concerns regarding their CFO, Cale Bennett, who previously worked at Corporate Travel Management (CTM), a company currently in the news. Despite the issues at CTM, TechnologyOne’s leadership has expres...
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.