TEMENOS

Analysis of Temenos share price

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If you are one of the investors who are interested in Swiss stocks and more precisely in Temenos stock, we suggest you, through this article, to discover all the information you will need in order to carry out good analysis of this stock. In this article, we will present you with the elements that you need to follow in your fundamental analysis of this stock, as well as the precise activities of this company and its sources of income, its main current competitors and its most recent partnerships.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we need to keep an eye on the banking market, which is currently the largest customer market for Temenos, and its needs in terms of competitiveness and regulatory changes.

Analysis N°2

We will also have to keep a close eye on all the operations carried out by Temenos with the aim of entering international markets where it still has little presence, as was recently the case in the US market.

Analysis N°3

Of course, you will also need to keep up to date with the company's research and development activities, which can lead to new and innovative solutions in order to win new customers.

Analysis N°4

Of course, Temenos' direct competitors in its sector of activity will need to be monitored with great interest, while also taking into account the competition from the banks themselves. Indeed, the latter are increasingly favouring the internal development of their solutions, which may weigh on Temenos' profitability.

Analysis N°5

Finally, it will also be necessary to follow Temenos' various balance sheets and financial results that are published each year and each quarter and compare them to analysts' expectations and the targets set by the group.

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General presentation of Temenos

We now propose that you deepen your knowledge of Temenos by discovering the details of its activities. A good knowledge of the sources of profits of this group is indeed essential if you want to make a correct and coherent analysis. Here is a detailed presentation of this company.

The Temenos Group is a Swiss company specialising in the software sector. More specifically, it is currently the world's leading provider of integrated banking software.

To better understand Temenos' activities, they can be divided into different divisions according to the share of turnover they generate and in this way:

  • First of all, the major part of the group's revenues comes from the sale of licenses, which generates nearly 44.3% of the turnover.
  • Next come maintenance services, which account for 37.4% of turnover.
  • Finally, services generate nearly 18.3% of the company's turnover.

It is also interesting to know the geographical distribution of Temenos' revenues. Only 3.6% of its turnover is generated in Switzerland. Next comes the UK with 6.3%, the rest of Europe with 34.4%, the Americas with 7.8%, Asia Pacific with 19.1% and the Middle East Africa with 17.6%.

Analysis of Temenos share price
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The major competitors of Temenos

Now that you have a better understanding of the Temenos group and its activities, we will talk about the main competitors it faces in the market and in its sector.

Finistra

This multinational company specializes in the development of financial software packages for capital markets, banks and other businesses that operate in the global financial markets. It is based in London.

Avaloq

This Swiss company also specialises in the development and supply of software for core banking. Its Avaloq banking Suite is currently used by more than 140 banks worldwide.

nCino

nCino is a financial technology company based in North Carolina, USA. Its clients include Truist Financial and Santander.

Oracle 

Of course, we will also take into account the company Oracle which is an American company known worldwide for its database management system and its application server but which also develops ERP software and a cloud computing offer. It is currently the second largest software company in the world in terms of turnover and market capitalization.

SAP 

Finally, another giant in this sector is the German SAP Group which specializes in the design and sale of software such as business and maintenance systems to companies and institutions worldwide. It is based in Walldorf, Germany and has regional offices all over the world.


The major partners of Temenos

Let's take a look at the strategic alliances that Temenos has put in place in the recent past that have helped it to differentiate itself from the competition. Here are two specific examples of partnerships:

Taurus

Notably, in 2020, Temenos Group signed a partnership with Swiss financial technology company Taurus to enable its clients to seamlessly manage and integrate different forms of digital assets through access to the Taurus platform. Through this collaboration, banks can now provide custody of a wide range of digital assets and further innovate through the creation of tokenised products of their choice.

Huawei

Another partnership was recently signed with Huawei Group, who selected Temenos as the first core banking software provider to be certified with their infrastructure and cloud. The two companies will jointly market leading financial services offerings in the cloud to promote scalability, operational efficiency and time-to-market. With this partnership, Temenos also strengthens its leadership position in the cloud industry by offering software to all major public cloud providers.

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Frequently Asked Questions

How can I trade online on the Temenos share price?

More and more online brokers are now offering live trading in stocks such as Temenos. You can do this through a traditional stockbroker and buy this stock with a PEA or a securities account or speculate on the rise or fall of this stock through derivatives such as CFDs or contracts for difference which are increasingly popular trading tools.

Which analysis should be used to study Temenos shares?

If you want to get reliable trading signals on the Temenos share price, we recommend that you do not focus on a single analysis but vary the available analyses to refine your strategy. This way you can implement a technical analysis, a fundamental analysis and a financial analysis of the stock.

Is Temenos a profitable stock?

This is a difficult question to answer precisely because of the many fluctuations in the stock market. In order to know whether Temenos shares can be profitable in the short, medium or long term and thus adapt your trading strategy, you must first of all be able to carry out relevant analyses of its price. These analyses must be focused on the study of stock market charts with several indicators and the study of news.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500