HAMILTON LANE INC-CLASS A (HLNE) Stock Fundamental Analysis
NASDAQ:HLNE - Nasdaq - US4074971064 - Common Stock - Currency: USD
HLNE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 shows excellent growth, but is valued quite expensive already. 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.
HLNE had positive earnings in each of the past 5 years.
HLNE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLNE's Return On Assets of 13.53% is amongst the best of the industry. HLNE outperforms 94.78% of its industry peers.
HLNE's Return On Equity of 33.16% is amongst the best of the industry. HLNE outperforms 96.52% of its industry peers.
HLNE has a Return On Invested Capital of 20.87%. This is amongst the best in the industry. HLNE outperforms 97.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLNE is significantly above the industry average of 7.10%.
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
With a decent Profit Margin value of 31.13%, HLNE is doing good in the industry, outperforming 71.30% of the companies in the same industry.
In the last couple of years the Profit Margin of HLNE has grown nicely.
HLNE's Operating Margin of 45.75% is fine compared to the rest of the industry. HLNE outperforms 79.57% of its industry peers.
In the last couple of years the Operating Margin of HLNE has remained more or less at the same level.
| 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
Compared to 1 year ago, HLNE has more shares outstanding
The number of shares outstanding for HLNE has been increased compared to 5 years ago.
Compared to 1 year ago, HLNE has an improved debt to assets ratio.
2.2 Solvency
HLNE has an Altman-Z score of 8.64. This indicates that HLNE is financially healthy and has little risk of bankruptcy at the moment.
HLNE has a better Altman-Z score (8.64) than 93.91% of its industry peers.
The Debt to FCF ratio of HLNE is 1.07, which is an excellent value as it means it would take HLNE, only 1.07 years of fcf income to pay off all of its debts.
HLNE's Debt to FCF ratio of 1.07 is amongst the best of the industry. HLNE outperforms 86.52% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that HLNE is not too dependend on debt financing.
HLNE has a better Debt to Equity ratio (0.45) than 70.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 8.64 |
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.
With a Current ratio value of 1.24, HLNE perfoms like the industry average, outperforming 57.39% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that HLNE should not have too much problems paying its short term obligations.
HLNE has a Quick ratio of 1.24. This is comparable to the rest of the industry: HLNE outperforms 57.39% 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
HLNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.86%, which is quite impressive.
HLNE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.47% yearly.
Looking at the last year, HLNE shows a very strong growth in Revenue. The Revenue has grown by 41.16%.
The Revenue has been growing by 17.04% on average over the past years. This is quite good.
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.
Based on estimates for the next years, HLNE will show a quite strong growth in Revenue. The Revenue will grow by 17.13% on average per year.
EPS Next Y29.15%
EPS Next 2Y11.72%
EPS Next 3Y14.99%
EPS Next 5Y14.69%
Revenue Next Year32.63%
Revenue Next 2Y18.16%
Revenue Next 3Y17.16%
Revenue Next 5Y17.13%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
HLNE is valuated quite expensively with a Price/Earnings ratio of 30.82.
Based on the Price/Earnings ratio, HLNE is valued a bit more expensive than the industry average as 71.30% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of HLNE to the average of the S&P500 Index (28.22), we can say HLNE is valued inline with the index average.
HLNE is valuated quite expensively with a Price/Forward Earnings ratio of 32.82.
Based on the Price/Forward Earnings ratio, HLNE is valued a bit more expensive than the industry average as 73.04% of the companies are valued more cheaply.
HLNE is valuated expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 32.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLNE is valued a bit cheaper than 64.35% of the companies in the same industry.
HLNE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.15 | ||
| EV/EBITDA | 34.11 |
4.3 Compensation for Growth
HLNE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HLNE 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)1.06
PEG (5Y)1.99
EPS Next 2Y11.72%
EPS Next 3Y14.99%
5. Dividend
5.1 Amount
HLNE has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.35, HLNE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, HLNE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
34.06% of the earnings are spent on dividend by HLNE. This is a low number and sustainable payout ratio.
The dividend of HLNE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.06%
EPS Next 2Y11.72%
EPS Next 3Y14.99%
160.59
+4.97 (+3.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change0.1%
Ins Owners3.13%
Ins Owner Change-3.15%
Market Cap11.50B
Analysts53.33
Price Target158.1 (-1.55%)
Short Float %5.28%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)-9.97%
PT rev (3m)-18.99%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 32.82 | ||
| P/S | 16.63 | ||
| P/FCF | 42.15 | ||
| P/OCF | 40.61 | ||
| P/B | 17.72 | ||
| P/tB | 17.72 | ||
| EV/EBITDA | 34.11 |
EPS(TTM)5.21
EY3.24%
EPS(NY)4.89
Fwd EY3.05%
FCF(TTM)3.81
FCFY2.37%
OCF(TTM)3.95
OCFY2.46%
SpS9.66
BVpS9.06
TBVpS9.06
PEG (NY)1.06
PEG (5Y)1.99
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 | 8.64 |
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 2Y11.72%
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 Year32.63%
Revenue Next 2Y18.16%
Revenue Next 3Y17.16%
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%