Temenos AG
Temenos AG Fundamental Analysis
Temenos AG (TMSNY) shows strong financial fundamentals with a PE ratio of 21.87, profit margin of 26.21%, and ROE of 62.93%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 4.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TMSNY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTMSNY demonstrates superior asset utilization.
Valuation Score
ExcellentTMSNY trades at attractive valuation levels.
Growth Score
ModerateTMSNY shows steady but slowing expansion.
Financial Health Score
WeakTMSNY carries high financial risk with limited liquidity.
Profitability Score
ExcellentTMSNY achieves industry-leading margins.
Key Financial Metrics
Is TMSNY Expensive or Cheap?
P/E Ratio
TMSNY trades at 21.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TMSNY's PEG of 0.30 indicates potential undervaluation.
Price to Book
The market values Temenos AG at 15.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.42 times EBITDA. This is generally considered low.
How Well Does TMSNY Make Money?
Net Profit Margin
For every $100 in sales, Temenos AG keeps $26.21 as profit after all expenses.
Operating Margin
Core operations generate 45.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $62.93 in profit for every $100 of shareholder equity.
ROA
Temenos AG generates $13.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Temenos AG generates strong operating cash flow of $355.56M, reflecting robust business health.
Free Cash Flow
Temenos AG generates strong free cash flow of $352.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.10 in free cash annually.
FCF Yield
TMSNY converts 5.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.63
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.39
vs 25 benchmark
How TMSNY Stacks Against Its Sector Peers
| Metric | TMSNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.87 | 35.86 | Better (Cheaper) |
| ROE | 62.93% | 1050.00% | Weak |
| Net Margin | 26.21% | 5884891012.00% | Weak |
| Debt/Equity | 1.88 | 0.57 | Weak (High Leverage) |
| Current Ratio | 0.48 | 5.06 | Weak Liquidity |
| ROA | 13.37% | -292833.00% (disorted) | Strong |
TMSNY outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Temenos AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.99%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-4.39%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
2.32%
Industry Style: Growth, Innovation, High Beta
Growing