HAMILTON LANE INC-CLASS A (HLNE) Stock Fundamental Analysis
NASDAQ:HLNE - Nasdaq - US4074971064 - Common Stock - Currency: USD
Taking everything into account, HLNE scores 6 out of 10 in our fundamental rating. HLNE was compared to 232 industry peers in the Capital Markets industry. HLNE has an excellent profitability rating, but there are some minor concerns on its financial health. HLNE is valued quite expensive, but it does show an excellent growth. With these ratings, HLNE could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year HLNE was profitable.
HLNE had a positive operating cash flow in the past year.
In the past 5 years HLNE has always been profitable.
Each year in the past 5 years HLNE had a positive operating cash flow.
1.2 Ratios
HLNE has a better Return On Assets (12.86%) than 93.53% of its industry peers.
HLNE has a better Return On Equity (30.31%) than 94.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.84%, HLNE belongs to the top of the industry, outperforming 97.41% of the companies in the same industry.
HLNE had an Average Return On Invested Capital over the past 3 years of 22.58%. This is significantly above the industry average of 7.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 30.31% | ||
| ROIC | 20.84% |
ROA(3y)11.28%
ROA(5y)10.68%
ROE(3y)28.1%
ROE(5y)33.18%
ROIC(3y)22.58%
ROIC(5y)19.69%
1.3 Margins
With a decent Profit Margin value of 30.49%, HLNE is doing good in the industry, outperforming 74.57% of the companies in the same industry.
In the last couple of years the Profit Margin of HLNE has grown nicely.
The Operating Margin of HLNE (44.40%) is better than 76.72% of its industry peers.
HLNE's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.4% | ||
| PM (TTM) | 30.49% | ||
| GM | N/A |
OM growth 3Y-1.19%
OM growth 5Y0.87%
PM growth 3Y-8.59%
PM growth 5Y6.57%
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.
The debt/assets ratio for HLNE is higher compared to a year ago.
2.2 Solvency
HLNE has an Altman-Z score of 6.48. This indicates that HLNE is financially healthy and has little risk of bankruptcy at the moment.
HLNE's Altman-Z score of 6.48 is amongst the best of the industry. HLNE outperforms 90.09% of its industry peers.
The Debt to FCF ratio of HLNE is 1.01, which is an excellent value as it means it would take HLNE, only 1.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.01, HLNE belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that HLNE is not too dependend on debt financing.
HLNE's Debt to Equity ratio of 0.40 is fine compared to the rest of the industry. HLNE outperforms 71.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 6.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HLNE has a Current Ratio of 1.16. This is a normal value and indicates that HLNE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, HLNE is in line with its industry, outperforming 51.72% of the companies in the same industry.
HLNE has a Quick Ratio of 1.16. 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 (1.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
HLNE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.57%, which is quite impressive.
HLNE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.18% yearly.
The Revenue has grown by 28.73% in the past year. This is a very strong growth!
HLNE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.08% yearly.
EPS 1Y (TTM)28.57%
EPS 3Y4.79%
EPS 5Y20.18%
EPS Q2Q%-12.32%
Revenue 1Y (TTM)28.73%
Revenue growth 3Y24.67%
Revenue growth 5Y21.08%
Sales Q2Q%12.06%
3.2 Future
Based on estimates for the next years, HLNE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.74% on average per year.
HLNE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.64% yearly.
EPS Next Y-3.4%
EPS Next 2Y8.75%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue Next Year1.48%
Revenue Next 2Y9.92%
Revenue Next 3Y12.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.57, which means the current valuation is very expensive for HLNE.
Based on the Price/Earnings ratio, HLNE is valued a bit more expensive than 71.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. HLNE is around the same levels.
A Price/Forward Earnings ratio of 28.54 indicates a quite expensive valuation of HLNE.
HLNE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HLNE is more expensive than 70.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLNE to the average of the S&P500 Index (22.13), we can say HLNE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLNE is valued a bit cheaper than the industry average as 66.38% of the companies are valued more expensively.
HLNE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.72 | ||
| EV/EBITDA | 25 |
4.3 Compensation for Growth
HLNE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y8.75%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
HLNE has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 8.22, HLNE is paying slightly less dividend.
With a Dividend Yield of 1.43, HLNE pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of HLNE grows each year by 19.56%, which is quite nice.
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)19.56%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HLNE pays out 34.95% 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.
DP34.95%
EPS Next 2Y8.75%
EPS Next 3Y9.74%
138.95
-7.54 (-5.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change10.25%
Ins Owners3.13%
Ins Owner Change-3.15%
Market Cap7.71B
Analysts50
Price Target160.99 (15.86%)
Short Float %8.05%
Short Ratio5.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend1.38
Dividend Growth(5Y)19.56%
DP34.95%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.33%
Min EPS beat(2)1.1%
Max EPS beat(2)11.55%
EPS beat(4)3
Avg EPS beat(4)11%
Min EPS beat(4)-3.63%
Max EPS beat(4)34.99%
EPS beat(8)5
Avg EPS beat(8)6.73%
EPS beat(12)8
Avg EPS beat(12)8.94%
EPS beat(16)12
Avg EPS beat(16)12.74%
Revenue beat(2)2
Avg Revenue beat(2)9.07%
Min Revenue beat(2)4.44%
Max Revenue beat(2)13.69%
Revenue beat(4)3
Avg Revenue beat(4)10.27%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)26.31%
Revenue beat(8)5
Avg Revenue beat(8)8.43%
Revenue beat(12)7
Avg Revenue beat(12)11%
Revenue beat(16)8
Avg Revenue beat(16)7.79%
PT rev (1m)1.83%
PT rev (3m)-8.33%
EPS NQ rev (1m)-16.39%
EPS NQ rev (3m)-20.05%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-8.58%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-5.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 28.54 | ||
| P/S | 10.82 | ||
| P/FCF | 26.72 | ||
| P/OCF | 25.64 | ||
| P/B | 10.76 | ||
| P/tB | 10.76 | ||
| EV/EBITDA | 25 |
EPS(TTM)5.04
EY3.63%
EPS(NY)4.87
Fwd EY3.5%
FCF(TTM)5.2
FCFY3.74%
OCF(TTM)5.42
OCFY3.9%
SpS12.84
BVpS12.92
TBVpS12.92
PEG (NY)N/A
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 30.31% | ||
| ROCE | 24.91% | ||
| ROIC | 20.84% | ||
| ROICexc | 26.65% | ||
| ROICexgc | 27.46% | ||
| OM | 44.4% | ||
| PM (TTM) | 30.49% | ||
| GM | N/A | ||
| FCFM | 40.49% |
ROA(3y)11.28%
ROA(5y)10.68%
ROE(3y)28.1%
ROE(5y)33.18%
ROIC(3y)22.58%
ROIC(5y)19.69%
ROICexc(3y)26.87%
ROICexc(5y)22.9%
ROICexgc(3y)28.19%
ROICexgc(5y)23.88%
ROCE(3y)26.99%
ROCE(5y)23.55%
ROICexcg growth 3Y19.01%
ROICexcg growth 5Y-5.25%
ROICexc growth 3Y19.07%
ROICexc growth 5Y-4.68%
OM growth 3Y-1.19%
OM growth 5Y0.87%
PM growth 3Y-8.59%
PM growth 5Y6.57%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 130.92% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 30.44 | ||
| Cash Conversion | 92.32% | ||
| Profit Quality | 132.77% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 6.48 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)109.9%
Cap/Depr(5y)192.46%
Cap/Sales(3y)1.53%
Cap/Sales(5y)2.53%
Profit Quality(3y)135.75%
Profit Quality(5y)139.47%
High Growth Momentum
Growth
EPS 1Y (TTM)28.57%
EPS 3Y4.79%
EPS 5Y20.18%
EPS Q2Q%-12.32%
EPS Next Y-3.4%
EPS Next 2Y8.75%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue 1Y (TTM)28.73%
Revenue growth 3Y24.67%
Revenue growth 5Y21.08%
Sales Q2Q%12.06%
Revenue Next Year1.48%
Revenue Next 2Y9.92%
Revenue Next 3Y12.64%
Revenue Next 5YN/A
EBIT growth 1Y28.8%
EBIT growth 3Y23.2%
EBIT growth 5Y22.13%
EBIT Next Year8.19%
EBIT Next 3Y16.93%
EBIT Next 5YN/A
FCF growth 1Y162.95%
FCF growth 3Y21.48%
FCF growth 5Y21.24%
OCF growth 1Y148.92%
OCF growth 3Y21.07%
OCF growth 5Y20.91%