HAMILTON LANE INC-CLASS A (HLNE) Stock Fundamental Analysis
NASDAQ:HLNE - Nasdaq - US4074971064 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to HLNE. HLNE was compared to 230 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making HLNE a very profitable company, without any liquidiy or solvency issues. HLNE is valued quite expensive, but it does show an excellent growth. This makes HLNE very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
HLNE had positive earnings in the past year.
HLNE had a positive operating cash flow in the past year.
Each year in the past 5 years HLNE has been profitable.
In the past 5 years HLNE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HLNE (13.53%) is better than 95.22% of its industry peers.
The Return On Equity of HLNE (33.16%) is better than 96.96% of its industry peers.
HLNE's Return On Invested Capital of 20.87% is amongst the best of the industry. HLNE outperforms 97.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLNE is significantly above the industry average of 7.27%.
The 3 year average ROIC (19.34%) for HLNE is below the current ROIC(20.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 33.16% | ||
| ROIC | 20.87% |
ROA(3y)10.77%
ROA(5y)10.68%
ROE(3y)32.12%
ROE(5y)34.97%
ROIC(3y)19.34%
ROIC(5y)20.09%
1.3 Margins
HLNE's Profit Margin of 31.13% is fine compared to the rest of the industry. HLNE outperforms 72.61% of its industry peers.
In the last couple of years the Profit Margin of HLNE has grown nicely.
HLNE has a better Operating Margin (45.75%) than 79.57% of its industry peers.
HLNE's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.75% | ||
| PM (TTM) | 31.13% | ||
| GM | N/A |
OM growth 3Y-0.86%
OM growth 5Y1.44%
PM growth 3Y-2.38%
PM growth 5Y13.8%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for HLNE has been increased compared to 1 year ago.
The number of shares outstanding for HLNE has been increased compared to 5 years ago.
HLNE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.33 indicates that HLNE is not in any danger for bankruptcy at the moment.
HLNE has a better Altman-Z score (7.33) than 92.17% of its industry peers.
HLNE has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
The Debt to FCF ratio of HLNE (1.07) is better than 85.65% of its industry peers.
HLNE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.45, HLNE is doing good in the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 7.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HLNE has a Current Ratio of 1.24. This is a normal value and indicates that HLNE is financially healthy and should not expect problems in meeting its short term obligations.
HLNE has a Current ratio (1.24) which is in line with its industry peers.
HLNE has a Quick Ratio of 1.24. This is a normal value and indicates that HLNE is financially healthy and should not expect problems in meeting its short term obligations.
HLNE has a Quick ratio of 1.24. This is comparable to the rest of the industry: HLNE outperforms 56.52% of its industry peers.
HLNE does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.86% over the past year.
Measured over the past years, HLNE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.47% on average per year.
Looking at the last year, HLNE shows a very strong growth in Revenue. The Revenue has grown by 41.16%.
HLNE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.04% yearly.
EPS 1Y (TTM)48.86%
EPS 3Y12.82%
EPS 5Y15.47%
EPS Q2Q%76.06%
Revenue 1Y (TTM)41.16%
Revenue growth 3Y17.48%
Revenue growth 5Y17.04%
Sales Q2Q%34.33%
3.2 Future
HLNE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.69% yearly.
HLNE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.13% yearly.
EPS Next Y29.15%
EPS Next 2Y11.45%
EPS Next 3Y14.99%
EPS Next 5Y14.69%
Revenue Next Year32.34%
Revenue Next 2Y16.52%
Revenue Next 3Y16.77%
Revenue Next 5Y17.13%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.75, which means the current valuation is very expensive for HLNE.
71.30% of the companies in the same industry are cheaper than HLNE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HLNE to the average of the S&P500 Index (25.91), we can say HLNE is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.97, which means the current valuation is very expensive for HLNE.
HLNE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HLNE is more expensive than 71.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. HLNE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 33.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLNE is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLNE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.65 | ||
| EV/EBITDA | 27.83 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HLNE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HLNE's earnings are expected to grow with 14.99% in the coming years.
PEG (NY)1.09
PEG (5Y)2.05
EPS Next 2Y11.45%
EPS Next 3Y14.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, HLNE has a reasonable but not impressive dividend return.
HLNE's Dividend Yield is slightly below the industry average, which is at 8.11.
With a Dividend Yield of 1.15, HLNE pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of HLNE is nicely growing with an annual growth rate of 26.37%!
HLNE has been paying a dividend for over 5 years, so it has already some track record.
HLNE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)26.37%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HLNE pays out 34.06% of its income as dividend. This is a sustainable payout ratio.
HLNE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.06%
EPS Next 2Y11.45%
EPS Next 3Y14.99%
165.41
+1.55 (+0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change10.23%
Ins Owners3.13%
Ins Owner Change-3.15%
Market Cap9.18B
Analysts53.33
Price Target158.1 (-4.42%)
Short Float %7.95%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1.21
Dividend Growth(5Y)26.37%
DP34.06%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.96%
Min EPS beat(2)-3.63%
Max EPS beat(2)11.55%
EPS beat(4)3
Avg EPS beat(4)19.11%
Min EPS beat(4)-3.63%
Max EPS beat(4)34.99%
EPS beat(8)5
Avg EPS beat(8)8.98%
EPS beat(12)8
Avg EPS beat(12)9.64%
EPS beat(16)12
Avg EPS beat(16)14.1%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)4.44%
Revenue beat(4)3
Avg Revenue beat(4)13.58%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)26.94%
Revenue beat(8)4
Avg Revenue beat(8)5.9%
Revenue beat(12)6
Avg Revenue beat(12)9.72%
Revenue beat(16)8
Avg Revenue beat(16)7.92%
PT rev (1m)-7.74%
PT rev (3m)-6.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 33.97 | ||
| P/S | 13.28 | ||
| P/FCF | 33.65 | ||
| P/OCF | 32.42 | ||
| P/B | 14.14 | ||
| P/tB | 14.14 | ||
| EV/EBITDA | 27.83 |
EPS(TTM)5.21
EY3.15%
EPS(NY)4.87
Fwd EY2.94%
FCF(TTM)4.92
FCFY2.97%
OCF(TTM)5.1
OCFY3.08%
SpS12.46
BVpS11.69
TBVpS11.69
PEG (NY)1.09
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 33.16% | ||
| ROCE | 26.45% | ||
| ROIC | 20.87% | ||
| ROICexc | 28.54% | ||
| ROICexgc | 29.5% | ||
| OM | 45.75% | ||
| PM (TTM) | 31.13% | ||
| GM | N/A | ||
| FCFM | 39.46% |
ROA(3y)10.77%
ROA(5y)10.68%
ROE(3y)32.12%
ROE(5y)34.97%
ROIC(3y)19.34%
ROIC(5y)20.09%
ROICexc(3y)21.93%
ROICexc(5y)22.96%
ROICexgc(3y)23.08%
ROICexgc(5y)24.14%
ROCE(3y)24.51%
ROCE(5y)25.46%
ROICexcg growth 3Y13.41%
ROICexcg growth 5Y-9.75%
ROICexc growth 3Y12.7%
ROICexc growth 5Y-9.54%
OM growth 3Y-0.86%
OM growth 5Y1.44%
PM growth 3Y-2.38%
PM growth 5Y13.8%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 108.93% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.92% | ||
| Profit Quality | 126.78% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 7.33 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)117.78%
Cap/Depr(5y)203.85%
Cap/Sales(3y)1.73%
Cap/Sales(5y)2.64%
Profit Quality(3y)128.03%
Profit Quality(5y)149.17%
High Growth Momentum
Growth
EPS 1Y (TTM)48.86%
EPS 3Y12.82%
EPS 5Y15.47%
EPS Q2Q%76.06%
EPS Next Y29.15%
EPS Next 2Y11.45%
EPS Next 3Y14.99%
EPS Next 5Y14.69%
Revenue 1Y (TTM)41.16%
Revenue growth 3Y17.48%
Revenue growth 5Y17.04%
Sales Q2Q%34.33%
Revenue Next Year32.34%
Revenue Next 2Y16.52%
Revenue Next 3Y16.77%
Revenue Next 5Y17.13%
EBIT growth 1Y49.82%
EBIT growth 3Y16.47%
EBIT growth 5Y18.73%
EBIT Next Year45.47%
EBIT Next 3Y22.13%
EBIT Next 5Y23.16%
FCF growth 1Y20.55%
FCF growth 3Y-13.33%
FCF growth 5Y0.67%
OCF growth 1Y22.94%
OCF growth 3Y-13.73%
OCF growth 5Y1.61%