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What Do Analysts Think About Hansen Technologies Ltd's (ASX:HSN) Growth?

On 30 June 2019, Hansen Technologies Ltd (ASX:HSN) announced its earnings update. Overall, analyst consensus outlook appear in-line with its track record, as upcoming earnings growth is expected to be 9.9% next year, similar to the range of average earnings growth for the past five years of 9.4% per year. By 2020, we can expect Hansen Technologies’s bottom line to reach AU$24m, a jump from the current trailing-twelve-month of AU$21m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Hansen Technologies in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

Check out our latest analysis for Hansen Technologies

Exciting times ahead?

Longer term expectations from the 3 analysts covering HSN’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for HSN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

ASX:HSN Past and Future Earnings, August 23rd 2019
ASX:HSN Past and Future Earnings, August 23rd 2019

By 2022, HSN's earnings should reach AU$34m, from current levels of AU$21m, resulting in an annual growth rate of 17%. This leads to an EPS of A$0.17 in the final year of projections relative to the current EPS of A$0.11. In 2022, HSN's profit margin will have expanded from 9.2% to 10%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Hansen Technologies, I've put together three pertinent aspects you should look at:

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  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is Hansen Technologies 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 Hansen Technologies is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hansen Technologies? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.