TEMN:SIXTemenos AG Analysis
Data as of 2026-03-12 - not real-time
CHF 74.65
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Temenos trades at CHF 74.65, roughly 3% below its DCF‑derived fair value of CHF 89 and enjoys a PE of 24 versus the software industry average of 34.6, suggesting a modest undervaluation. The company delivers robust profitability with a 73.7% gross margin, 22% operating margin and a 25.7% net margin, while generating strong free cash flow of CHF 485M. Technicals are supportive: the price sits above the 20‑day (CHF 68.8), 50‑day (CHF 72.4) and 200‑day (CHF 68.5) moving averages, the MACD is bullish and the RSI at 60 signals mild upward momentum.
Recent material news – a Microsoft AI Cloud Partner certification and a Q3 FY2025 earnings beat with 11% revenue growth, 36% EBIT rise and 42% EPS surge – underscores accelerating SaaS adoption, which should reinforce the upside to the current price. However, the balance sheet is levered (debt‑to‑equity ≈ 169%) and the 30‑day volatility is high at 54%, implying caution. The dividend yield of 1.86% with a 39% payout appears sustainable, offering a modest income cushion.
Recent material news – a Microsoft AI Cloud Partner certification and a Q3 FY2025 earnings beat with 11% revenue growth, 36% EBIT rise and 42% EPS surge – underscores accelerating SaaS adoption, which should reinforce the upside to the current price. However, the balance sheet is levered (debt‑to‑equity ≈ 169%) and the 30‑day volatility is high at 54%, implying caution. The dividend yield of 1.86% with a 39% payout appears sustainable, offering a modest income cushion.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price near resistance at CHF 77
- Bullish MACD with supportive moving averages
- Elevated short‑term volatility
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- DCF upside of ~3% and PE advantage vs industry
- Strong SaaS momentum highlighted by certification and earnings beat
- Robust margins and free cash flow generation
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- Sustainable dividend yield with moderate payout ratio
- High ROE supported by leverage but manageable debt levels
- Continued exposure to growing banking‑software market
Key Metrics & Analysis
Financial Health
Revenue Growth-1.30%
Profit Margin25.72%
P/E Ratio24.0
ROE50.24%
ROA6.85%
Debt/Equity169.25
P/B Ratio13.5
Op. Cash FlowCHF353.8M
Free Cash FlowCHF485.2M
Industry P/E34.6
Technical Analysis
TrendNeutral
RSI60.5
SupportCHF 62.25
ResistanceCHF 77.00
MA 20CHF 68.79
MA 50CHF 72.38
MA 200CHF 68.55
MACDBullish
VolumeStable
Fear & Greed Index78.16
Valuation
Fair ValueCHF 89.07
Target PriceCHF 76.94
Upside/Downside3.07%
GradeUndervalued
TypeGrowth
Dividend Yield1.86%
Risk Assessment
Beta0.16
Volatility54.18%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.