TEMN Stock Analysis: Temenos | SW
Software - Application | SW, Switzerland | Market Cap: 4.191m CHF | 12M Return: -7.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 10.4M
EPS Trend: 95.1%
Qual. Beats: 0
Rev. Trend: 98.0%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Temenos AG is a Swiss software company that develops, markets, and sells integrated banking software to banks and other financial institutions across North America, Europe, the Middle East and Africa, Latin America, and Asia-Pacific. Founded in 1993 and headquartered in Lancy, Switzerland, the company was renamed from Temenos Group AG to Temenos AG in May 2018.
The business operates through two segments. The Product segment generates revenue from software licensing, maintenance, custom development, and from hosting and subscription arrangements, reflecting the broader shift within enterprise software toward cloud and subscription-based delivery. The Services segment covers implementation work, including consulting and training.
Temenos offers solutions for retail and business banking, corporate and commercial banking, and wealth management, classifying within the GICS Application Software sub-industry of the Information Technology sector.
- Subscription ARR growth accelerates recurring revenue mix shift
- Banking IT capex slows amid rate uncertainty and digital budget cuts
- Services margin pressured by competitive pricing in core banking implementations
| Net Income: 193.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 10.93 > 1.0 |
| NWC/Revenue: -39.22% < 20% (prev -49.78%; Δ 10.57% < -1%) |
| CFO/TA 0.24 > 3% & CFO 531.8m > Net Income 193.3m |
| Net Debt (725.8m) to EBITDA (530.4m): 1.37 < 3 |
| Current Ratio: 0.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (67.2m) vs 12m ago -5.32% < -2% |
| Gross Margin: 69.22% > 18% (prev 67.25%; Δ 1.97% > 0.5%) |
| Asset Turnover: 48.08% > 50% (prev 45.36%; Δ 2.72% > 0%) |
| Interest Coverage Ratio: 39.02 > 6 (EBIT TTM 405.2m / Interest Expense TTM 10.4m) |
| A: -0.20 (Total Current Assets 449.4m - Total Current Liabilities 882.4m) / Total Assets 2.20b |
| B: 0.65 (Retained Earnings 1.42b / Total Assets 2.20b) |
| C: 0.18 (EBIT TTM 405.2m / Avg Total Assets 2.30b) |
| D: 0.20 (Book Value of Equity 373.0m / Total Liabilities 1.83b) |
| Altman-Z'' = 2.22 = BBB |
| DSRI: 0.77 (Receivables 189.4m/242.3m, Revenue 1.10b/1.08b) |
| GMI: 0.97 (GM 67.25% / 69.22%) |
| AQI: 1.07 (AQ_t 0.78 / AQ_t-1 0.72) |
| SGI: 1.02 (Revenue 1.10b / 1.08b) |
| TATA: -0.15 (NI 193.3m - CFO 531.8m) / TA 2.20b) |
| Beneish M = -3.20 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at CHF 65.15 with a total of 257,102 shares traded. Over the past week, the price has changed by -4.75%, over one month by -1.51%, over three months by -9.90% and over the past year by -7.83%.
Current recommended Stop Loss: 61.20 (which is 6.1% or 1.6 ATR below the current price).
Temenos has no consensus analysts rating.
Market Cap USD = 5.15b (4.19b CHF * 1.2277 CHF.USD)
P/E Trailing = 18.3088
P/E Forward = 17.6367
P/S = 3.8195
P/B = 13.4835
P/EG = 3.2652
Revenue TTM = 1.10b USD
EBIT TTM = 405.2m USD
EBITDA TTM = 530.4m USD
Long Term Debt = 769.4m USD (from longTermDebt, last fiscal year)
Short Term Debt = 16.8m USD (from shortTermDebt, last quarter)
Debt = 876.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 32.5m
Net Debt = 725.8m USD (calculated: Debt 876.9m - CCE 151.2m)
Enterprise Value = 5.87b USD (5.15b + Debt 876.9m - CCE 151.2m)
Interest Coverage Ratio = 39.02 (Ebit TTM 405.2m / Interest Expense TTM 10.4m)
EV/FCF = 11.90x (Enterprise Value 5.87b / FCF TTM 493.3m)
FCF Yield = 8.40% (FCF TTM 493.3m / Enterprise Value 5.87b)
FCF Margin = 44.67% (FCF TTM 493.3m / Revenue TTM 1.10b)
Net Margin = 17.50% (Net Income TTM 193.3m / Revenue TTM 1.10b)
Gross Margin = 69.22% ((Revenue TTM 1.10b - Cost of Revenue TTM 339.9m) / Revenue TTM)
Gross Margin QoQ = 67.63% (prev 60.64%)
Tobins Q-Ratio = 2.66 (Enterprise Value 5.87b / Total Assets 2.20b)
Interest Expense / Debt = 1.18% (Interest Expense 10.4m / Debt 876.9m)
Taxrate = 16.89% (42.4m / 251.0m)
NOPAT = 336.8m (EBIT 405.2m * (1 - 16.89%))
Current Ratio = 0.51 (Total Current Assets 449.4m / Total Current Liabilities 882.4m)
Debt / Equity = 2.35 (Debt 876.9m / totalStockholderEquity, last quarter 373.0m)
Debt / EBITDA = 1.37 (Net Debt 725.8m / EBITDA 530.4m)
Debt / FCF = 1.47 (Net Debt 725.8m / FCF TTM 493.3m)
Total Stockholder Equity = 425.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.41% (Net Income 193.3m / Total Assets 2.20b)
RoE = 45.47% (Net Income TTM 193.3m / Total Stockholder Equity 425.0m)
RoCE = 33.92% (EBIT 405.2m / Capital Employed (Equity 425.0m + L.T.Debt 769.4m))
RoIC = 26.22% (NOPAT 336.8m / Invested Capital 1.28b)
WACC = 7.78% (E(5.15b)/V(6.02b) * Re(8.94%) + D(876.9m)/V(6.02b) * Rd(1.18%) * (1-Tc(0.17)))
Discount Rate = 8.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.35 | Cagr: -3.79%
[DCF] Terminal Value 77.97% ; FCFF base≈405.3m ; Y1≈464.6m ; Y5≈683.7m
[DCF] Fair Price = 142.0 (EV 10.3b - Net Debt 725.8m = Equity 9.56b / Shares 67.3m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 95.06 | EPS CAGR: 16.72% | SUE: 0.13 | # QB: 0
Revenue Correlation: 97.99 | Revenue CAGR: 4.93% | SUE: -0.94 | # QB: -1
EPS current Quarter (2026-09-30): EPS=1.06 | Chg30d=-0.16% | Revisions=+12% | Analysts=5
EPS current Year (2026-12-31): EPS=4.63 | Chg30d=+0.10% | Revisions=+25% | GrowthEPS=+6.6% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=5.10 | Chg30d=+0.09% | Revisions=+25% | GrowthEPS=+10.2% | GrowthRev=+7.0%
[Analyst] Revisions Ratio: +30% (up=5, down=2)