TEMENOS AG - REG (TE8N.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TE8N - CH0012453913 - Common Stock
79.65 EUR
+0.8 (+1.01%)
Taking everything into account, TE8N scores 5 out of 10 in our fundamental rating. TE8N was compared to 114 industry peers in the Software industry. While TE8N has a great profitability rating, there are some minor concerns on its financial health. TE8N has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- TE8N had positive earnings in the past year.
- TE8N had a positive operating cash flow in the past year.
- Each year in the past 5 years TE8N has been profitable.
- TE8N had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TE8N (16.68%) is better than 90.35% of its industry peers.
- With an excellent Return On Equity value of 86.36%, TE8N belongs to the best of the industry, outperforming 96.49% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 25.39%, TE8N belongs to the top of the industry, outperforming 93.86% of the companies in the same industry.
- TE8N had an Average Return On Invested Capital over the past 3 years of 12.47%. This is in line with the industry average of 13.49%.
- The last Return On Invested Capital (25.39%) for TE8N is above the 3 year average (12.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.68% | ||
| ROE | 86.36% | ||
| ROIC | 25.39% |
ROA(3y)6.23%
ROA(5y)6.87%
ROE(3y)22.72%
ROE(5y)27.62%
ROIC(3y)12.47%
ROIC(5y)12.68%
1.3 Margins
- TE8N has a Profit Margin of 23.82%. This is in the better half of the industry: TE8N outperforms 79.82% of its industry peers.
- In the last couple of years the Profit Margin of TE8N has declined.
- TE8N has a Operating Margin of 22.29%. This is in the better half of the industry: TE8N outperforms 78.95% of its industry peers.
- TE8N's Operating Margin has declined in the last couple of years.
- The Gross Margin of TE8N (77.48%) is better than 62.28% of its industry peers.
- In the last couple of years the Gross Margin of TE8N has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.29% | ||
| PM (TTM) | 23.82% | ||
| GM | 77.48% |
OM growth 3Y-3.47%
OM growth 5Y-1.78%
PM growth 3Y-1.82%
PM growth 5Y-1.85%
GM growth 3Y2.8%
GM growth 5Y-0.2%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TE8N is creating value.
- TE8N has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TE8N has been reduced compared to 5 years ago.
- The debt/assets ratio for TE8N has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.99 indicates that TE8N is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.99, TE8N is doing good in the industry, outperforming 61.40% of the companies in the same industry.
- The Debt to FCF ratio of TE8N is 3.07, which is a good value as it means it would take TE8N, 3.07 years of fcf income to pay off all of its debts.
- TE8N has a Debt to FCF ratio of 3.07. This is comparable to the rest of the industry: TE8N outperforms 57.02% of its industry peers.
- A Debt/Equity ratio of 1.35 is on the high side and indicates that TE8N has dependencies on debt financing.
- TE8N's Debt to Equity ratio of 1.35 is on the low side compared to the rest of the industry. TE8N is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 3.99 |
ROIC/WACC4.63
WACC5.49%
2.3 Liquidity
- A Current Ratio of 0.41 indicates that TE8N may have some problems paying its short term obligations.
- TE8N's Current ratio of 0.41 is on the low side compared to the rest of the industry. TE8N is outperformed by 90.35% of its industry peers.
- TE8N has a Quick Ratio of 0.41. This is a bad value and indicates that TE8N is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.41, TE8N is not doing good in the industry: 90.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- TE8N shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.64%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 2.40% on average over the past years.
- TE8N shows a small growth in Revenue. In the last year, the Revenue has grown by 5.67%.
- Measured over the past years, TE8N shows a small growth in Revenue. The Revenue has been growing by 1.44% on average per year.
EPS 1Y (TTM)30.64%
EPS 3Y1.12%
EPS 5Y2.4%
EPS Q2Q%22.37%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y2.59%
Revenue growth 5Y1.44%
Sales Q2Q%4.7%
3.2 Future
- TE8N is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.86% yearly.
- Based on estimates for the next years, TE8N will show a small growth in Revenue. The Revenue will grow by 6.47% on average per year.
EPS Next Y5.22%
EPS Next 2Y3.56%
EPS Next 3Y5.19%
EPS Next 5Y7.86%
Revenue Next Year2.82%
Revenue Next 2Y3.87%
Revenue Next 3Y4.58%
Revenue Next 5Y6.47%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.02, TE8N is valued on the expensive side.
- Based on the Price/Earnings ratio, TE8N is valued a bit cheaper than 78.07% of the companies in the same industry.
- TE8N is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.49, which indicates a rather expensive current valuation of TE8N.
- 71.05% of the companies in the same industry are more expensive than TE8N, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, TE8N is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 22.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TE8N indicates a somewhat cheap valuation: TE8N is cheaper than 65.79% of the companies listed in the same industry.
- 72.81% of the companies in the same industry are more expensive than TE8N, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 15.84 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of TE8N may justify a higher PE ratio.
PEG (NY)4.03
PEG (5Y)8.77
EPS Next 2Y3.56%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
- TE8N has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.68, TE8N pays a better dividend. On top of this TE8N pays more dividend than 90.35% of the companies listed in the same industry.
- TE8N's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
- The dividend of TE8N is nicely growing with an annual growth rate of 12.63%!
Dividend Growth(5Y)12.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 29.48% of the earnings are spent on dividend by TE8N. This is a low number and sustainable payout ratio.
- TE8N's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.48%
EPS Next 2Y3.56%
EPS Next 3Y5.19%
TEMENOS AG - REG / TE8N.DE FAQ
Can you provide the ChartMill fundamental rating for TEMENOS AG - REG?
ChartMill assigns a fundamental rating of 5 / 10 to TE8N.DE.
What is the valuation status for TE8N stock?
ChartMill assigns a valuation rating of 4 / 10 to TEMENOS AG - REG (TE8N.DE). This can be considered as Fairly Valued.
What is the profitability of TE8N stock?
TEMENOS AG - REG (TE8N.DE) has a profitability rating of 7 / 10.
How financially healthy is TEMENOS AG - REG?
The financial health rating of TEMENOS AG - REG (TE8N.DE) is 4 / 10.
How sustainable is the dividend of TEMENOS AG - REG (TE8N.DE) stock?
The dividend rating of TEMENOS AG - REG (TE8N.DE) is 6 / 10 and the dividend payout ratio is 29.48%.