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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Temenos AG's Interest Coverage for the quarter that ended in Jun. 2026 was 20.47.
Temenos AG's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.75.
As of today, Temenos AG's Altman Z-Score is 3.64.
Temenos AG (XSWX:TEMN) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Temenos AG has the Financial Strength Rank of 5.
Temenos AG Financial Strength Related Terms
XSWX:TEMN vs CRM, SHOP, UBER: Financial Strength Comparison
For the Software - Application subindustry, Temenos AG's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Temenos AG Financial Strength vs Software Industry
For the Software industry and Technology sector, Temenos AG's Financial Strength distribution charts can be found below:
* The bar in red indicates where Temenos AG's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Temenos AG has a Z-score of 3.64, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.64 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Temenos AG (XSWX:TEMN) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Temenos AG and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, Temenos AG's Financial Strength has ranged from 3.00 to 7.00.
Is Temenos AG's Financial Strength too high?
Temenos AG's current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. Overall, Temenos AG has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Temenos AG's Financial Strength compare to CRM and SHOP?
Temenos AG's Financial Strength of 5 can be compared against companies in the Software industry. Historically, Temenos AG's own Financial Strength has ranged from 3.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Temenos AG and its competitors. Temenos AG's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Temenos AG stock overvalued right now?
Based on GuruFocus' analysis, Temenos AG (XSWX:TEMN) is currently considered Fairly Valued. The stock's GF Value™ is CHF70.96, compared to a current price of CHF72.75 — trading 2.5% above its estimated fair value. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. Temenos AG's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Temenos AG (XSWX:TEMN), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Temenos AG (XSWX:TEMN) Overvalued in 2026?
Based on GuruFocus' analysis, Temenos AG stock appears to be overvalued.
The current stock price of CHF72.75 is trading 2.5% above its estimated GF Value™ of CHF70.96.
GuruFocus considers Temenos AG to be Fairly Valued.
Key valuation signals for XSWX:TEMN:
Financial Strength: 5 (25% above median its 10-year median of 4.00)
GF Value™: CHF70.96 vs. price of CHF72.75 (2.5% above fair value)
No single metric tells the full story. See the XSWX:TEMN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Temenos is a Swiss company that provides banking software to financial institutions around the world. Its main product is core banking software that helps banks manage accounts, customer information, transaction processing, loans, security, and financial reporting. Besides core banking software, Temenos offers products for digital banking, payments, wealth management, compliance, and analytics to help banks improve customer experience and meet regulatory requirements.
79GF Score
Get the complete analysis for XSWX:TEMN
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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