Technology One Intrinsic Value – Technology One Delivers Splendid Shareholder Returns Despite Five-Year Earnings Growth Lag.

February 5, 2023

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Technology One Intrinsic Value – Technology One ($ASX:TNE) is a leading provider of enterprise software solutions, specializing in asset, financial and student management. Despite a five-year lag in earnings growth, Technology One has delivered splendid shareholder returns. The company is continuing to invest heavily in research and development and has been extremely successful in building a strong customer base with many large organizations and government bodies. Technology One’s success has been driven by its focus on providing high quality solutions that are both innovative and cost-effective. The company has built a range of integrated solutions that allow customers to manage their assets, finances and students more efficiently.

The company has also developed an extensive partner network which helps to ensure that customers have access to the best technology solutions available. Technology One’s strong commitment to customer service and customer satisfaction has been key to its success. The company has a dedicated team of customer service and technical support professionals who are always available to provide assistance when needed. Technology One also offers a wide range of training and support services to ensure that customers are able to make the most of their solutions. With its strong leadership team, extensive partner network and robust product portfolio, Technology One is well-positioned to continue delivering strong returns for its shareholders in the future.

Market Price

Technology One has been generating positive news coverage lately, with its Friday stock opening at AU$14.8 and closing at AU$14.8, up by 2.2% from last closing price of 14.5. Technology One is known for creating leading enterprise software and services, with a strong customer base across Australia, New Zealand, Asia, the United Kingdom and Africa. Its cloud-based solutions enable customers to manage their businesses more efficiently, while its software helps streamline administrative and operational processes. This has helped the company become more agile and better able to respond to customer needs.

Additionally, Technology One’s prudent financial management has enabled it to maintain a strong balance sheet and deliver solid shareholder returns over the past five years. Technology One has also invested in research and development to remain at the forefront of technological innovation. This has enabled the company to offer products that meet the changing needs of its customers, while also increasing its market share through strategic acquisitions. Overall, despite its five-year earnings growth lagging behind its competitors, Technology One has delivered splendid returns to its shareholders through its prudent financial management, strategic investments and agile response to customer needs. This is reflected in the company’s Friday stock opening and closing at AU$14.8, up by 2.2% from the last closing price of 14.5. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Technology One. More…

    Total Revenues Net Income Net Margin
    368.23 88.84 24.1%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Technology One. More…

    Operations Investing Financing
    142.8 -67.28 -43.86
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Technology One. More…

    Total Assets Total Liabilities Book Value Per Share
    539.95 300.85 0.74
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Technology One are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    8.9% 14.7% 31.0%
    FCF Margin ROE ROA
    20.5% 32.7% 13.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Technology One Intrinsic Value

    GoodWhale conducted an in-depth analysis of TECHNOLOGY ONE’s wellbeing and found that the fair value of its stock is approximately AU$11.3. This was calculated using GoodWhale’s proprietary Valuation Line methodology. Currently, the company’s stock is being traded at AU$14.8, which is 31.4% higher than the fair value. This implies that the stock is currently overvalued, and investors may consider waiting for a price correction before making any purchases. GoodWhale’s Valuation Line provides a detailed insight into the company’s financial health and the market sentiment towards it. The Valuation Line methodology involves assessing various aspects of the company, such as its assets, liabilities, cash flows and operating performance. This helps to provide an accurate picture of the company’s current financial standing and its potential for future growth. It is important for investors to take into account the fair value of a company’s stock before making any investment decisions. Knowing the true value of a company helps investors to make informed decisions and minimise their risk exposure. GoodWhale’s Valuation Line helps to provide this insight, enabling investors to make more informed decisions. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    Technology One Ltd is an established technology company that has been operating in the industry for many years. It has a range of competitors including Wonders Information Co Ltd, RocketBoots Ltd, and Sebata Holdings Ltd. Each of these companies are well-respected in their respective fields and offer a variety of products and services to the public.

    – Wonders Information Co Ltd ($SZSE:300168)

    Wonders Information Co Ltd is a technology company that specializes in providing innovative solutions for businesses and consumers. It has a market cap of 10.05B as of 2023 and a Return on Equity of -6.49%. The market capitalization of a company is an indication of its value and size, and Wonders Information Co Ltd’s market cap of 10.05B reflects its potential to achieve considerable growth. On the other hand, Return on Equity (ROE) is a measure of a company’s profitability, and Wonders Information Co Ltd’s negative ROE indicates that it may not be generating enough profits to cover its operating expenses.

    – RocketBoots Ltd ($ASX:ROC)

    RocketBoots Ltd is a technology-based company that provides innovative products and services in the aerospace industry. As of 2023, the company has a market cap of 6.03 million. This figure indicates that the company is well-established and has seen significant growth over the past year. The company offers a range of products and services, such as launch vehicles, space exploration systems, propulsion systems, and more. The company is also known for its research and development capabilities, which have enabled them to stay ahead of the competition. With its cutting-edge products and services, RocketBoots Ltd is well-positioned to capitalize on the increasing demand for space exploration and related services around the world.

    – Sebata Holdings Ltd ($BER:3M9)

    Sebata Holdings Ltd is a diversified holding company that specializes in providing solutions across the communications, media, and technology sectors. It has a market capitalization of 14.9M as of 2023 and a Return on Equity of -82.57%. This indicates that the company is not generating profits and may be in financial difficulty. The negative Return on Equity means that the company is losing money on its investments and shareholders have not seen any return on their investment. This could indicate poor management or lack of capitalization. Despite this, the company remains a major player in the communications, media, and technology sectors.

    Summary

    Technology One Corporation has been delivering impressive shareholder returns despite its five-year earnings growth lagging behind its peers. According to financial analysts, the company has been able to maintain a steady growth rate with sound management and increased investment in research and development. In addition, due to its strong product portfolio and customer base, Technology One is well-positioned for future growth. Despite this, investors should be aware of the risk associated with investing in the stock, as the company’s five-year earnings growth has yet to catch up with peers in the industry.

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