Morningstar

Temenos AG TEMN

Morningstar Rating
Unlock
Stock XSWX Rating as of
CHF 66.60 +0.75 (1.14%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

Temenos' Conversion to Subscription and SaaS Should Lead to More-Predictable Results

Rob Hales

Temenos is a leading provider of core banking software around the world with a strong presence in emerging markets and Western Europe. The company mainly sells software by subscription and software as a service, or SaaS, and also through licenses. Non-SaaS clients pay annual maintenance fees for ongoing support and updates. The company also offers services, mainly for the implementation of its software, but this is a small part of the revenue mix as Temenos is increasingly offloading this work to partners.

Read Analysis

Price vs Fair Value

View History
TEMN is trading at a LOCK|?jTL&$ premium.
Price
CHF 66.60
Fair Value
z<
Uncertainty
LOCK|Nh<
1-Star Price
LOCK|%.^Wq
5-Star Price
LOCK|.^
Economic Moat
LOCK|@j
Capital Allocation
LOCK|&L

Bulls Say, Bears Say

Bulls

Temenos is trading at a fraction of its previous valuation levels. Performance improvement could result in a material rerating in its trading multiples.

Bears

The highly concentrated US market for third-party core banking software will limit Temenos’ ability to expand its business in the country.

Show More

Trading Information

Previous Close Price
CHF 65.85
Day Range
CHF 64.50–67.40
52-Week Range
CHF 59.20–87.00
Bid/Ask
CHF 66.00 / CHF 67.55
Shares Outstanding
67.96M
Market Cap
CHF 4.53B
Volume/Avg
214,301 / 200,265

Key Statistics

Price/Earnings (Normalized)
19.41
Price/Sales
5.18
Dividend Yield (Trailing)
2.10%
Dividend Yield (Forward)
2.10%
Dividend Payment Schedule
May
Total Yield
7.00%

Company Profile

Temenos is a Swiss company that provides banking software to financial institutions around the world. Its main product is core banking software that helps banks manage accounts, customer information, transaction processing, loans, security, and financial reporting. Besides core banking software, Temenos offers products for digital banking, payments, wealth management, compliance, and analytics to help banks improve customer experience and meet regulatory requirements.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Core
Total Number of Employees
5,205
Website
https://www.temenos.com

Competitors

Valuation

View More
Metric
TEMN
JKHY
FISV
Price/Earnings (Normalized)
 19.4121.756.20
Price/Book Value
 14.784.910.90
Price/Sales
 5.184.071.17
Price/Cash Flow
 15.8411.824.61
Price/Earnings
TEMN
JKHY
FISV

Financial Strength

Metric
TEMN
JKHY
FISV
Quick Ratio
 0.510.660.18
Current Ratio
 0.511.171.04
Interest Coverage
 36.15117.883.10
Quick Ratio
TEMN
JKHY
FISV

Profitability

Metric
TEMN
JKHY
FISV
Return on Assets (Normalized)
 13.48%15.54%5.11%
Return on Equity (Normalized)
 45.74%22.31%15.91%
Return on Invested Capital (Normalized)
 23.47%21.33%9.72%
Return on Assets
TEMN
JKHY
FISV

Software - Application Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
SAP SE ADR
SAP
LOCK|px<GyzLOCK|SN$243B
 Salesforce Inc
CRM
LOCK|CH@<W^LOCK|<xr@$195B
 Shopify Inc Registered Shs -A- Subord Vtg
SHOP
LOCK|WK^!kWLOCK|&^b<?$192B
 ServiceNow Inc
NOW
LOCK|@DR@#?^wLOCK|%$lt$142B
 Uber Technologies Inc
UBER
LOCK|gqwJc!$LOCK|%Jcy>$139B
 Snowflake Inc Ordinary Shares
SNOW
LOCK|XtLGN<LOCK|Hp$121B
 Automatic Data Processing Inc
ADP
LOCK|s?!?#QLOCK|XzF%$105B
 Datadog Inc Class A
DDOG
LOCK|kcqg#KxLOCK|N<$99B
 Cadence Design Systems Inc
CDNS
LOCK|HLS@v%^LOCK|lB$97B
 Adobe Inc
ADBE
LOCK|n>^!ZC<LOCK|WnzLY$94B

Sponsor Center