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
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| SAP SE ADR
SAP
| LOCK|lpY&CD | LOCK|K@T | $275B | |||
| Shopify Inc Registered Shs -A- Subord Vtg
SHOP
| LOCK|>rY?Z@ | LOCK|XS>< | $213B | |||
| Salesforce Inc
CRM
| LOCK|S^>%>Y | LOCK|>$%Jf | $198B | |||
| ServiceNow Inc
NOW
| LOCK|n&HRmhw! | LOCK|^^P#X | $160B | |||
| Uber Technologies Inc
UBER
| LOCK|?g$>?!C | LOCK|FM$! | $134B | |||
| Snowflake Inc Ordinary Shares
SNOW
| LOCK|?nK<!Wn | LOCK|?kv | $119B | |||
| Automatic Data Processing Inc
ADP
| LOCK|<y#N$^ | LOCK|qnQq | $116B | |||
| Datadog Inc Class A
DDOG
| LOCK|hztN@t | LOCK|B&% | $101B | |||
| Adobe Inc
ADBE
| LOCK|bbBS!NP | LOCK|^SvRD | $97B | |||
| Cadence Design Systems Inc
CDNS
| LOCK|q^^$#<K | LOCK|fvL | $94B |
United States