DB:H2T

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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 Analysis

Fair value with moderate growth potential.


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

Stable Share Price: H2T's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

H2T

6.7%

DE Software

5.0%

DE Market


1 Year Return

-18.2%

H2T

9.0%

DE Software

4.1%

DE Market

Return vs Industry: H2T underperformed the German Software industry which returned 9% over the past year.

Return vs Market: H2T underperformed the German Market which returned 4.1% over the past year.


Shareholder returns

H2TIndustryMarket
7 Day3.3%6.7%5.0%
30 Day16.1%12.0%13.8%
90 Day-2.1%10.1%3.3%
1 Year-16.7%-18.2%10.5%9.0%5.8%4.1%
3 Yearn/a34.7%29.3%-0.9%-8.5%
5 Yearn/a105.2%91.0%10.5%-3.6%

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

No news available

Valuation

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

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: H2T (€1.87) is trading below our estimate of fair value (€3.2)

Significantly Below Fair Value: H2T is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: H2T is poor value based on its PE Ratio (38.8x) compared to the Software industry average (26.9x).

PE vs Market: H2T is poor value based on its PE Ratio (38.8x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: H2T is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: H2T is good value based on its PB Ratio (2.5x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

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

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H2T's forecast earnings growth (26.9% per year) is above the savings rate (0.2%).

Earnings vs Market: H2T's earnings (26.9% per year) are forecast to grow faster than the German market (22.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: H2T's revenue (4.6% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: H2T's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: H2T's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Hansen Technologies performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H2T has high quality earnings.

Growing Profit Margin: H2T's current net profit margins (6.1%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: H2T's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: H2T's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H2T had negative earnings growth (-32.3%) over the past year, making it difficult to compare to the Software industry average (30.4%).


Return on Equity

High ROE: H2T's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Hansen Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: H2T's short term assets (A$131.2M) exceed its short term liabilities (A$77.0M).

Long Term Liabilities: H2T's short term assets (A$131.2M) do not cover its long term liabilities (A$241.0M).


Debt to Equity History and Analysis

Debt Level: H2T's debt to equity ratio (73.6%) is considered high.

Reducing Debt: H2T's debt to equity ratio has increased from 2.7% to 73.6% over the past 5 years.

Debt Coverage: H2T's debt is well covered by operating cash flow (23%).

Interest Coverage: H2T's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: H2T's dividend (1.91%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: H2T's dividend (1.91%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: H2T's dividend payments have been volatile in the past 10 years.

Growing Dividend: H2T's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.1%), H2T's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H2T's dividends in 3 years are forecast to be well covered by earnings (30.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Andrew Hansen (59yo)

27.42yrs

Tenure

AU$1,603,379

Compensation

Mr. Andrew Alaxander Hansen has been the Chief Executive Officer of Hansen Technologies Ltd. since 1993 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 ($USD1.11M) is about average for companies of similar size in the German market ($USD1.08M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Hansen
MD, CEO & Director27.42yrsAU$1.60m17.64% A$66.6m
Graeme Taylor
Chief Financial Officer5.67yrsAU$600.24k0.067% A$253.0k
Cameron Hunter
Chief Operating Officerno dataAU$620.24k0.56% A$2.1m
Darren Meade
Group Head of Deliveryno dataAU$584.12k0.040% A$152.0k
Niv Fernando
Chief Strategy & Commercial Officerno dataAU$583.74k0.038% A$144.9k
Guy Tennant
Chief Technical Officerno datano datano data
Warwick Sharp
Head of Investor Relationsno datano datano data
Julia Chand
General Counsel & Company Secretaryno datano datano data
Glenn Gibson
Chief Marketing Officer0.50yrno datano data
Faye Aylward
Global HR Directorno datano datano data

5.7yrs

Average Tenure

Experienced Management: H2T's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Hansen
MD, CEO & Director27.42yrsAU$1.60m17.64% A$66.6m
Bruce Adams
Non-Executive Director20.42yrsAU$70.03k0.077% A$290.1k
David Osborne
Non-Executive Director14.25yrsAU$70.03k0.19% A$735.8k
David Trude
Independent Chairman of the Board8.83yrsAU$114.83k0.052% A$198.0k
Don Rankin
Non-Executive Director0.58yrno data0.013% A$47.6k
Jennifer Douglas
Independent Non-Executive Director3.33yrsAU$75.11k0.0081% A$30.5k
David Howell
Independent Non-Executive Director2.08yrsAU$100.03k0.016% A$61.8k

8.8yrs

Average Tenure

60yo

Average Age

Experienced Board: H2T's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: H2T insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Hansen Technologies Limited
  • Ticker: H2T
  • Exchange: DB
  • Founded: 1971
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$610.555m
  • Listing Market Cap: AU$377.526m
  • Shares outstanding: 198.23m
  • Website: https://www.hansencx.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 applications; and provides consulting services related to billing systems. It also offers information technology (IT) outsourcing and customer care services. The company’s IT services include data center and cloud hosting, disaster recovery, and IT management for finance, energy, healthcare, logistics, and manufacturing companies, as well as governments. In addition, it provides application services, such as turnkey, systems integration, application management, performance tuning, hosting, and support services; and implementation services. The company has operations in Australia, New Zealand, North America, Central America, Latin America, Europe, the Middle East, Africa, and rest of Asia. Hansen Technologies Limited was founded in 1971 and is headquartered in Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 10:08
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
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.