The Hansen Technologies Limited (ASX: HSN) share price hit a 52-week high of $4.04 this afternoon despite the software billings player not releasing any specific news to the market. More generally Hansen shares have been on a tear ever since the founder-run business announced on May 1 2019 that it is to spend CAD$157 million (A$166m) on acquiring Canadian software solutions business Sigma.
It’s no secret that much of Hansen’s impressive track record of long-term profit and dividend growth has come about via an aggressive acquisition strategy in its core software billings and enterprise services space.
Importantly though this growth has been achieved without a ballooning share count via excess capital raisings or mounting piles of debt. As such earnings per share have grown in line with the acquisitions, as the stock climbed from $1.33 in July 2014 to $4.04 today.
Hansen’s forecast is for FY 2019 profits to come in a little below FY 2018, although forward looking markets are now pricing in the chances of a return to profit growth in FY 202o.