Technology One Limited
Technology One Limited Fundamental Analysis
Technology One Limited (TNE.AX) shows strong financial fundamentals with a PE ratio of 66.18, profit margin of 23.00%, and ROE of 31.77%. The company generates $0.6B in annual revenue with strong year-over-year growth of 17.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TNE.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTNE.AX demonstrates superior asset utilization.
Valuation Score
WeakTNE.AX trades at a premium to fair value.
Growth Score
ExcellentTNE.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTNE.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentTNE.AX achieves industry-leading margins.
Key Financial Metrics
Is TNE.AX Expensive or Cheap?
P/E Ratio
TNE.AX trades at 66.18 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TNE.AX's PEG of 13.24 indicates potential overvaluation.
Price to Book
The market values Technology One Limited at 20.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 40.72 times EBITDA. This signals the market has high growth expectations.
How Well Does TNE.AX Make Money?
Net Profit Margin
For every $100 in sales, Technology One Limited keeps $23.00 as profit after all expenses.
Operating Margin
Core operations generate 19.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.77 in profit for every $100 of shareholder equity.
ROA
Technology One Limited generates $15.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Technology One Limited generates strong operating cash flow of $295.33M, reflecting robust business health.
Free Cash Flow
Technology One Limited generates strong free cash flow of $292.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.89 in free cash annually.
FCF Yield
TNE.AX converts 3.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
66.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How TNE.AX Stacks Against Its Sector Peers
| Metric | TNE.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 66.18 | 33.98 | Worse (Expensive) |
| ROE | 31.77% | 1007.00% | Weak |
| Net Margin | 23.00% | -47798.00% (disorted) | Strong |
| Debt/Equity | 0.12 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.14 | 5.66 | Neutral |
| ROA | 15.44% | -287356.00% (disorted) | Strong |
TNE.AX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Technology One Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.13%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
95.51%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
168.16%
Industry Style: Growth, Innovation, High Beta
High Growth