ASX:HSN

Stock Analysis Report

Hansen Technologies

Executive Summary

Hansen Technologies Limited develops, integrates, and supports customer care and billing system software for the utilities, energy, pay-TV, and telecommunications sectors.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Hansen Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

HSN

-5.7%

AU Software

0.1%

AU Market


1 Year Return

-3.1%

HSN

42.6%

AU Software

11.9%

AU Market

Return vs Industry: HSN underperformed the Australian Software industry which returned 42.6% over the past year.

Return vs Market: HSN underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

HSNIndustryMarket
7 Day-2.6%-5.7%0.1%
30 Day0.3%-6.0%-1.1%
90 Day-13.7%-4.7%-1.4%
1 Year-1.3%-3.1%43.8%42.6%18.5%11.9%
3 Year-11.0%-15.8%125.8%116.7%36.4%18.1%
5 Year144.6%121.4%165.9%144.1%50.9%16.7%

Price Volatility Vs. Market

How volatile is Hansen Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hansen Technologies undervalued compared to its fair value and its price relative to the market?

31.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HSN (A$3.41) is trading above our estimate of fair value (A$2.71)

Significantly Below Fair Value: HSN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HSN is good value based on its PE Ratio (31.3x) compared to the Software industry average (34.3x).

PE vs Market: HSN is poor value based on its PE Ratio (31.3x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HSN is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: HSN is good value based on its PB Ratio (2.7x) compared to the AU Software industry average (4.3x).


Next Steps

Future Growth

How is Hansen Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSN's forecast earnings growth (16.7% per year) is above the savings rate (2.3%).

Earnings vs Market: HSN's earnings (16.7% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: HSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: HSN's revenue (8.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: HSN's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSN's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Hansen Technologies performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HSN's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: HSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HSN had negative earnings growth (-25.6%) over the past year, making it difficult to compare to the Software industry average (22.6%).


Return on Equity

High ROE: HSN's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: HSN's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: HSN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hansen Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HSN's short term assets (A$123.5M) exceeds its short term liabilities (A$65.3M)

Long Term Liabilities: HSN's short term assets (123.5M) do not cover its long term liabilities (230.8M)


Debt to Equity History and Analysis

Debt Level: HSN's debt to equity ratio (74.9%) is considered high

Reducing Debt: HSN's debt to equity ratio has increased from 15.1% to 74.9% over the past 5 years.

Debt Coverage: HSN's debt is well covered by operating cash flow (21.3%).

Interest Coverage: HSN's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet

Inventory Level: HSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: HSN's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Hansen Technologies's current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.4%markettop25%5.6%industryaverage1.2%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HSN's dividend (1.76%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: HSN's dividend (1.76%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: HSN's dividend payments have been volatile in the past 10 years.

Growing Dividend: HSN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.1%), HSN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSN's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).


Next Steps

Management

What is the CEO of Hansen Technologies's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Andrew Hansen (59yo)

29.8yrs

Tenure

AU$1,603,379

Compensation

Mr. Andrew Alaxander Hansen has been the Chief Executive Officer of Hansen Technologies Ltd. since 1990 and has been its Managing Director since 2000. Mr. Alaxander has previously held senior management po ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD1.10M) is above average for companies of similar size in the Australian market ($USD737.68K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.6yrs

Average Tenure

Experienced Management: HSN's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

59yo

Average Age

Experienced Board: HSN's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: HSN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$009 Oct 19
FMR LLC
EntityCompany
Shares112,295
Max PriceAU$3.95
BuyAU$009 Oct 19
FMR LLC
EntityCompany
Shares1,947,797
Max PriceAU$3.82
BuyAU$25,08405 Sep 19
David Howell
EntityIndividual
Shares7,440
Max PriceAU$3.37
BuyAU$3,316,57621 Aug 19
FMR LLC
EntityCompany
Shares844,377
Max PriceAU$3.93
SellAU$9,026,64221 Aug 19
FMR LLC
EntityCompany
Shares2,131,489
Max PriceAU$4.23
SellAU$9,864,08624 Jul 19
Mawer Investment Management Limited
EntityCompany
Shares2,544,878
Max PriceAU$4.20
SellAU$026 Feb 19
FMR LLC
EntityCompany
Shares351,238
Max PriceAU$3.51
BuyAU$026 Feb 19
FMR LLC
EntityCompany
Shares6,436,285
Max PriceAU$3.68
BuyAU$26,41920 Dec 18
Crisp Hill Investments Pty Ltd
EntityCompany
Shares8,000
Max PriceAU$3.30

Ownership Breakdown


Management Team

  • Andrew Hansen (59yo)

    MD, CEO & Director

    • Tenure: 29.8yrs
    • Compensation: AU$1.60m
  • Darren Meade

    Group Head of Delivery

    • Tenure: 0yrs
    • Compensation: AU$584.12k
  • Cameron Hunter

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: AU$620.24k
  • Giovani Henrique

    President of Latin America

    • Tenure: 4.2yrs
  • Guy Tennant

    Chief Technical Officer

    • Tenure: 0yrs
  • Scott Weir

    Chief Information Security Officer

    • Tenure: 1.8yrs
    • Compensation: AU$106.23k
  • Param Kumar

    Executive Vice President

    • Tenure: 0yrs
  • Graeme Taylor

    Chief Financial Officer

    • Tenure: 5yrs
    • Compensation: AU$600.24k
  • Niv Fernando

    Chief Strategy & Commercial Officer

    • Tenure: 0yrs
    • Compensation: AU$583.74k
  • Julia Chand (49yo)

    General Counsel & Company Secretary

    • Tenure: 0yrs

Board Members

  • Andrew Hansen (59yo)

    MD, CEO & Director

    • Tenure: 29.8yrs
    • Compensation: AU$1.60m
  • Bruce Adams (59yo)

    Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: AU$70.03k
  • David Osborne (70yo)

    Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: AU$70.03k
  • Sarah Morgan (49yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: AU$75.11k
  • David Trude (71yo)

    Independent Chairman of the Board

    • Tenure: 8.2yrs
    • Compensation: AU$114.83k
  • Jennifer Douglas (52yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$75.11k
  • David Howell (61yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$100.03k

Company Information

Hansen Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hansen Technologies Limited
  • Ticker: HSN
  • Exchange: ASX
  • Founded: 1971
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$671.131m
  • Shares outstanding: 197.97m
  • Website: https://www.hsntech.com

Number of Employees


Location

  • Hansen Technologies Limited
  • 2 Frederick Street
  • Doncaster
  • Melbourne
  • Victoria
  • 3108
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2000
HSNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2000
H2TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2000

Biography

Hansen Technologies Limited develops, integrates, and supports customer care and billing system software for the utilities, energy, pay-TV, and telecommunications sectors. The company sells billing applica ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.