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

$29.36

20 Nov
2024

-0.090

OPEN

$29.22

-0.31%

HIGH

$29.57

1,546,402

LOW

$28.57

TARGET
$28.729 -2.2% 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 70.1 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: 1.74%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.76

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: 30/05 - ex-div 5.08c (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

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

xx/xx/xxxx

3

xxxxxxxxx xx xxxx xxxx xxx

$xx.xx

xx.xx%

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Macquarie

20/11/2024

3

Downgrade to Neutral from Outperform

$27.90

-4.97%

TechnologyOne reported 30 major local government contract closures in FY24, with education deals involving the University of Chester and Buckingham being focal points of UK growth, Macquarie observes.

The company reported "strong" profit growth of 18% over FY24. Macquarie sees evidence of the UK "flywheel," with recurring revenue sales up 70% year-on-year and 100% adoption of the SaaS-plus model.

Management confirmed the company is on track to exceed the $500m target by 1H25 and reaffirmed a $1bn target by FY30, with a profit margin above 35%.

Cash flow is becoming more predictable with the SaaS transition in place, achieving 101% cash flow conversion to net profit in FY24.

Macquarie adjusts EPS forecasts down -2% for FY25 and up 1% for FY26, citing better net profit margins and SaaS-plus "traction."

The stock is downgraded to Neutral from Outperform on valuation grounds. The target price increases to $27.90 from $22.20.

FORECAST
Macquarie forecasts a full year FY25 dividend of 27.70 cents and EPS of 43.70 cents.
Macquarie forecasts a full year FY26 dividend of 33.50 cents and EPS of 52.70 cents.

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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Ord Minnett

xx/xx/xxxx

4

xxxxxxxxx xx xxxxxxx xxxx xxxx

$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

-18.09%

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

FNArena News on TNE

1
Rudi’s View: The Importance Of ‘Quality’ Growth

Nov 21 2024 - Rudi's View
2
Australian Broker Call *Extra* Edition – Nov 21, 2024

Nov 21 2024 - Daily Market Reports
3
Rudi’s View: Knock. Knock. Volatility Is Back!

Nov 20 2024 - Rudi's View
4
Rudi’s View: A Rally With No Earnings Support

Nov 14 2024 - Rudi's View
5
Rudi’s View: Trump Returns, What Now?

Nov 07 2024 - Rudi's View

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1
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Oct 04 2024 - Small Caps
2
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May 29 2024 - Rudi's View
3
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Mar 18 2024 - Treasure Chest
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7
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Feb 24 2023 - Small Caps
8
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9
Treasure Chest: Appen Downgraded

Aug 03 2022 - Treasure Chest
10
Nitro Software Disappoints, Better Times Ahead?

Jul 28 2022 - Small Caps