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$33.00
â–²(7.04% 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 SaaS-focused model with multi-year contracts and high recurring revenue drives durable revenue visibility and customer lifetime value. In ERP markets switching costs are high, enabling predictable renewals and steady expansion via cross-sell, supporting cash stability and long-term planning.
Negative Factors
Declining free cash flow growth
A meaningful drop in FCF growth (-23%) signals weaker cash conversion versus prior periods and may reflect higher working capital, implementation timing or reinvestment needs. Persisting FCF weakness limits discretionary spending, dividends, or accelerated product investment without external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS revenue
Technology One's SaaS-focused model with multi-year contracts and high recurring revenue drives durable revenue visibility and customer lifetime value. In ERP markets switching costs are high, enabling predictable renewals and steady expansion via cross-sell, supporting cash stability and long-term planning.
Read all positive factors
Technology One Limited (TNE) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.36B
Dividend Yield0.83%
Average Volume (3M)1.08M
Price to Earnings (P/E)91.3
Beta (1Y)1.41
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$32.41Price Target Upside5.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.5
Revenue Forecast (FY)AU$690.38M
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
TechnologyOne makes money primarily by selling access to its enterprise software as a subscription, increasingly delivered as Software-as-a-Service (SaaS) through its cloud platform. Key revenue streams include: (1) recurring subscription/SaaS fee...
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
30.83
Price Trends
25.75
Positive
26.75
Positive
32.48
Negative
Market Momentum
0.97
Negative
66.42
Neutral
86.77
Negative
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 30.83 is above the 20-day moving average (MA) of 27.78, above the 50-day MA of 25.75, and below the 200-day MA of 32.48, indicating a neutral trend. The MACD of 0.97 indicates Negative momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 is Negative, 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$919.01M | 11.05 | 42.94% | 10.16% | -12.00% | -45.47% | |
70 Outperform | AU$13.53B | 51.29 | 9.08% | ― | 19.01% | 19.05% | |
69 Neutral | AU$1.03B | 12.19 | 17.13% | 1.85% | 11.63% | 1754.91% | |
68 Neutral | AU$9.36B | 91.29 | 31.77% | 0.83% | 18.16% | 16.25% | |
66 Neutral | AU$1.10B | 21.16 | 25.65% | 1.27% | 6.51% | 15.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | AU$164.96M | -55.98 | 0.87% | ― | 6.58% | ― |
* Technology Sector Average
AU:TNE
Technology One Limited
28.61
-1.85
-6.07%
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Technology One Limited Corporate Events
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...
Technology One Updates Market on Lapse of Options and Performance Rights
Mar 16, 2026
Technology One Limited has notified the market of the cessation of certain equity-based incentives, including 5,092 options and 266 performance rights that have lapsed. The lapse occurred because vesting or performance conditions were not met or b...
Technology One Issues New Unquoted Options and Performance Rights Under Incentive Scheme
Mar 9, 2026
Technology One Limited has notified the market of the issue of new unquoted securities under its employee incentive arrangements. The company will issue 57,170 options with various expiry dates and exercise prices, along with 6,548 performance rig...
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...
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.