Temenos' third-quarter subscription and software-as-a-service growth of 22% was below guidance for "at least 30%" and company-compiled consensus due to deal slippage in Africa. However, strong margins led to a boost in 2026 profit guidance. Shares were up 3% intraday.
Temenos is trading at a fraction of its previous valuation levels. Performance improvement could result in a material rerating of its trading multiples.
The highly concentrated US market for third-party core banking software will limit Temenos’ ability to expand its business in the country.
|
Metric
|
TEMN
|
JKHY
|
FISV
|
|---|---|---|---|
Price/Earnings (Normalized) | 21.88 | 23.93 | 6.47 |
Price/Book Value | 11.03 | 5.40 | 0.94 |
Price/Sales | 5.67 | 4.48 | 1.22 |
Price/Cash Flow | 16.80 | 13.00 | 4.82 |
|
Metric
|
TEMN
|
JKHY
|
FISV
|
|---|---|---|---|
Quick Ratio | 0.51 | 0.66 | 0.18 |
Current Ratio | 0.51 | 1.17 | 1.04 |
Interest Coverage | 36.15 | 117.88 | 3.10 |
|
Metric
|
TEMN
|
JKHY
|
FISV
|
|---|---|---|---|
Return on Assets (Normalized) | 13.48% | 15.54% | 5.11% |
Return on Equity (Normalized) | 45.74% | 22.31% | 15.91% |
Return on Invested Capital (Normalized) | 23.47% | 21.33% | 9.72% |
|
1-Day Chart
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United States