A Look At The Growth Trajectory Of IT Stock – TNE

  • Apr 20, 2019 AEST
  • Team Kalkine
A Look At The Growth Trajectory Of IT Stock – TNE

Technology One Limited (ASX: TNE), established in 1987 and headquartered in Fortitude Valley, Australia is engaged in the research, development, marketing, sale, as well as the deployment of integrated enterprise business software solutions in New Zealand, Australia, and other countries worldwide. The company serves clients across local government, asset intensive, health and community services, education, financial services industries, as well as corporates.

It is one of the largest Software as a Service (SaaS) company, and one of Australia's top 200 ASX-listed companies with a valuation of more than AUD 2.6 billion to date. On April 18th, 2019, the TNE stock price closed the market’s trading session at AUD 8.310, down 0.954% with ~ 665,875 shares traded. It was close to the 52-week high of AUD 8.640 recorded on April 12th, 2019. The company also has an annual dividend yield of 1.08%.

Investors may keep a watchful eye as the TNE stock price has demonstrated an uptrend since the onset of the year, with the three-month return yield of 27.12%. Besides, TNE has also generated a positive YTD return of 38.68% so far.

The company recently announced the appointment of Mr Clifford Rosenberg as the independent, Non-Executive Director in line, with its previously discussed plans for board renewal process including the addition of four new independent Directors by 2019. Dr Jane Andrews and Ms Sharon Doyle joined on Board in 2016 and 2018 respectively, and the fourth independent director is planned to be announced later in the ongoing calendar year 2019.

In January 2019, Technology One released its Annual Report 2018 comprising the financial results for the year ended September 30th, 2018. Accordingly, the company witnessed the 9th consecutive year of record profit, record revenue and record licence fees so far. Currently, it has around 347 large scale enterprise customers, with hundreds of thousands of users that are able to use a simple and cost-effective way to run their business.

The net profit before tax amounted to $66.5 million, which is 15% higher than the prior year and the revenue was recorded at $299 million, also up 9% compared to the previous period. Besides, the total expenses amounted to $232 million, up 8% including R&D of $ 54 million, fully expensed and accounting for 18% of the revenue.

Technology One also recorded a 225 rise in the Total Annual Recurring Revenue to $169 million with Initial Licence Fees of $65 million, also up 6% (9% up for APAC region). The company also paid out a total dividend of 11.02 cents per share.

The balance sheet continued to be robust with net cash and cash equivalents of $104 million and the debt to equity ratio remained conservative at less than 1%. Moreover, the operating cash flow was once again remained positive with $48.6 million for the full year.

In its first ever 2018 Sustainability Report released in January 2019, the company has set out its approach to sustainability while it continues to innovate and invest substantially, into new and emerging technologies with an aim to grow exponentially in the coming years.


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