Can slow and steady win the race? Why fundies love this ASX 300 tech share

Quality can take time…

| More on:
Two couples having fun racing electric dodgem cars around a track

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Not every company inside the S&P/ASX 300 Index (ASX: XKO) has face-melting growth — but maybe they don't all need it.

On the contrary, many investors are seeking the sanctuary of steady profit machines during these unpredictable times. Fears of a rate hike-induced recession are renewing investors' prioritisation of predictability and financial stability.

In a recent interview conducted by Livewire, long-time investing experts Josh Clark and Gary Rollo, from QVG Capital and Montgomery Investment Management respectively, showed their enthusiasm for one ASX 300 tech share that fits the bill.

This ASX 300 share strikes the sweet spot

It would be hard to find a tech share in the ASX 300, or at all for that matter, that hasn't suffered at the hand of weaker markets recently. To highlight this, the S&P/ASX All Technology Index (ASX: XTX) is nearly 32% underwater compared to the start of the year.

Despite this, Clark and Rollo were in agreeance that billing solutions company Hansen Technologies Limited (ASX: HSN) is a buy.

Unlike its potentially more exciting tech peers, Hansen doesn't boast +30% revenue growth. In the 12 months ending 31 December 2021, the company increased its revenue by 5% to $314.4 million.

Commenting on this fact, Rollo shared his perspective on Hansen, stating:

Look, it's not a high growth type business, it's got stable industry fundamentals in the sector that it plays in. It's basically giving you market-level growth, but in a business model that's a bit better than the market. You've got a founder-led management team where they've given some punchy targets for years two, three, four, and five; in terms of what they think they can get to — M&A's got to be part of that story.

Likewise, Clark also believes the founder-led team is a strong selling point. Most importantly, this includes the founder and CEO Andrew Hansen, who holds a 17.5% stake in the company.

Furthermore, Clark explained this ASX 300 tech share's enviable track record of value creation, stating:

[T]hey've been able to go and purchase businesses with sticky revenues, retain those revenues, but then improve that margin profile of those businesses over time. And that's where a lot of the values come from.

What has Hansen been up to?

In the past month, Hansen Technologies has secured an extension with an existing customer and signed a new multi-year contract.

The extension involved one of the Nordic region's largest energy service providers, Gasum. According to the release, the extension will see Gasum use Hansen Trade (an energy trading solution) for more use cases.

Additionally, the ASX 300 tech share landed a multi-year agreement with SwissGrid to deploy Hansen MDM (meter data management).

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Hansen Technologies. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A woman looks quizzical while looking at a dollar sign in the air.
Technology Shares

Are DroneShield shares still fundamentally expensive now?

DroneShield shares still look expensive, but the growth is there...

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Technology Shares

Should we be worried about a Nasdaq stock market crash?

The tech sell-off has seen the Nasdaq plunge 3.4% in two days. Now what?

Read more »

A group of six work colleagues gather around a computer in an office situation and discuss something on the screen as one man points and others look on with interest
Technology Shares

Buy this fantastic ASX 200 stock following the tech selloff

Bell Potter thinks that investors should snap up this stock while they can.

Read more »

Kid with a brown paper bag on his head which has a sad face on it sits in front of an old style computer representing falling ASX 200 tech shares today.
Technology Shares

Why are ASX tech shares being hit so hard today?

What’s causing the tech space to get hammered?

Read more »

A young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguished.
Technology Shares

Down 15% in less than 3 weeks, what's next for Brainchip shares?

The downtrend continues in FY25.

Read more »

A female soldier flies a drone using hand-held controls.
Technology Shares

DroneShield shares dive another 19%! Time to pounce?

With DroneShield shares getting hammered again today, do I think it’s time to buy?

Read more »

Happy man and woman looking at the share price on a tablet.
Technology Shares

2 ASX tech stocks to buy now: Broker

Bell Potter thinks that these stocks could offer market-beating returns.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Technology Shares

Guess which ASX defence stock is rocketing 10% today (Hint: not DroneShield!)

What is getting investors excited this morning? Let's find out.

Read more »