TECHNOLOGY ONE LIMITED (TNE)
Share Price Analysis and Chart

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TNE - TECHNOLOGY ONE LIMITED

FNArena Sector : IT & Support
Year End: September
GICS Industry Group : Software & Services
Debt/EBITDA: 0.28
Index: ASX100 | ASX200 | ASX300 | ALL-ORDS | ALL-TECH

TechnologyOne is involved in the development, sale and support of financial management and enterprise software solutions. Typical customers are universities, local councils, TAFE staff and students, as well as health and financial institutions. Founded in 1987 in Brisbane, it became a listed company in 1999. Has expanded into the UK.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$30.02

20 Dec
2024

-0.200

OPEN

$29.81

-0.66%

HIGH

$30.27

2,380,624

LOW

$29.57

TARGET
$29.191

+0.46 change from previous day

 -2.8% downside
Franking for last dividend paid out: 65%
OTHER COMPANIES IN THE SAME SECTOR
APX . DTL . FLN . HSN . IRI . OCL . STG .
FNARENA'S MARKET CONSENSUS FORECASTS
TNE: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 36.2 42.4 xxx
DPS (cps) xxx 22.5 26.0 xxx
EPS Growth xxx 14.3% 17.0% xxx
DPS Growth xxx 15.0% 15.8% xxx
PE Ratio xxx N/A 70.8 xxx
Dividend Yield xxx N/A 0.9% xxx
Div Pay Ratio(%) xxx 61.9% 61.3% xxx

Dividend yield today if purchased 3 years ago: 1.75%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.75

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 28/11 - ex-div 17.37c (franking 65%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx36.2
DPS All xxxxxxxxxxxxxxx22.5
Sales/Revenue xxxxxxxxxxxxxxx506.5 M
Book Value Per Share xxxxxxxxxxxxxxx116.4
Net Operating Cash Flow xxxxxxxxxxxxxxx212.7 M
Net Profit Margin xxxxxxxxxxxxxxx23.30 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx34.44 %
Return on Invested Capital xxxxxxxxxxxxxxx30.97 %
Return on Assets xxxxxxxxxxxxxxx15.57 %
Return on Equity xxxxxxxxxxxxxxx34.44 %
Return on Total Capital xxxxxxxxxxxxxxx37.90 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx141.6 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx7 M
Long Term Debt xxxxxxxxxxxxxxx53 M
Total Debt xxxxxxxxxxxxxxx60 M
Goodwill - Gross xxxxxxxxxxxxxxx55 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx279 M
Price To Book Value xxxxxxxxxxxxxxx20.50

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx92.6 M
Capex % of Sales xxxxxxxxxxxxxxx18.29 %
Cost of Goods Sold xxxxxxxxxxxxxxx294 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx65 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx0 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.1

No. Of Recommendations

7
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Ord Minnett

xx/xx/xxxx

3

xxxxxxxxxx xx xxxxxxxx xxxx xxxx

$xx.xx

xx.xx%

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Shaw and Partners

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Bell Potter

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Morgans

20/11/2024

3

Downgrade to Hold from Add

$29.90

-0.40%

Morgans raises its target price for TechnologyOne to $29.90 from $20.50 and downgrades the rating to Hold from Add following FY24 results.

While outcomes were only modestly ahead of the broker's expectations, Morgans increases its medium-term forecasts to better align with management’s long-term growth targets.

Management reiterated its long-term growth roadmap outlined at its investor day, including plans to double ARR to more than $1bn by FY30. The broker’s target also benefits from a valuation roll-forward and a higher assumed multiple.

The analysts highlight further acceleration in the UK business, which is directly linked to the company’s globally unique SaaS go-to-market offering, explains Morgans.

A final dividend of 17.37c (65% franked) was declared, bringing the total FY24 dividend to 22.45c.

FORECAST
Morgans forecasts a full year FY25 dividend of 25.21 cents and EPS of 42.18 cents.
Morgans forecasts a full year FY26 dividend of 29.33 cents and EPS of 49.13 cents.

Macquarie

xx/xx/xxxx

3

xxxxxxxxx xx xxxxxxx xxxx xxxxxxxxxx

$xx.xx

xx.xx%

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UBS

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

3

xxxxx-xxxxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Wilsons

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Goldman Sachs

07/11/2024

3

Neutral

$24.05

-19.89%

Goldman Sachs expects TechnologyOne to report a strong FY24 result on November 19.

The broker forecasts annual recurring revenue (ARR) of $466m, up by 19% year-on-year, and total revenue of $499m, closely aligning with consensus.

Goldman Sachs highlights key areas of focus, including the drivers of ARR growth and the sustainability of management’s target for net revenue retention (NRR) above 115%, as the transition to the cloud is completed.

The broker sees potential in UK ARR growth, projected at 20%, as well as in the company's trajectory toward profit before tax margins exceeding 35% over the long term.

Goldman Sachs also notes over $250m in available cash, indicating flexibility in capital management and M&A strategy.

Neutral rating retained, with the broker noting the current valuation appears fair relative to high-quality ASX TMT peers. Target price $24.05.

FORECAST
Goldman Sachs forecasts a full year FY25 dividend of 26.00 cents and EPS of 43.00 cents.
Access Extra Coverage Research History >

TNE STOCK CHART

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