Why Hansen Technologies Ltd (ASX:HSN) Could Have A Place In Your Portfolio
Attractive stocks have exceptional fundamentals. In the case of Hansen Technologies Ltd (ASX:HSN), there’s is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Hansen Technologies here.
Excellent balance sheet with proven track record
In the previous year, HSN has ramped up its bottom line by 21%, with its latest earnings level surpassing its average level over the last five years. Not only did HSN outperformed its past performance, its growth also exceeded the Software industry expansion, which generated a 11% earnings growth. This is an optimistic signal for the future. HSN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that HSN has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. HSN’s has produced operating cash levels of 1.91x total debt over the past year, which implies that HSN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Hansen Technologies, I’ve compiled three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for HSN’s future growth? Take a look at our free research report of analyst consensus for HSN’s outlook.
Valuation: What is HSN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HSN is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HSN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
