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 225 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. These ratings would make HLNE suitable for growth and quality 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.
HLNE had positive earnings in each of the past 5 years.
Each year in the past 5 years HLNE had a positive operating cash flow.
1.2 Ratios
HLNE has a Return On Assets of 13.53%. This is amongst the best in the industry. HLNE outperforms 93.15% of its industry peers.
Looking at the Return On Equity, with a value of 33.16%, HLNE belongs to the top of the industry, outperforming 97.26% of the companies in the same industry.
The Return On Invested Capital of HLNE (20.87%) is better than 97.72% of its industry peers.
HLNE had an Average Return On Invested Capital over the past 3 years of 19.34%. This is significantly above the industry average of 6.81%.
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 has a Profit Margin of 31.13%. This is in the better half of the industry: HLNE outperforms 71.23% of its industry peers.
In the last couple of years the Profit Margin of HLNE has grown nicely.
HLNE has a Operating Margin of 45.75%. This is in the better half of the industry: HLNE outperforms 78.54% 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
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.
Compared to 1 year ago, HLNE has an improved debt to assets ratio.
2.2 Solvency
HLNE has an Altman-Z score of 8.67. This indicates that HLNE is financially healthy and has little risk of bankruptcy at the moment.
HLNE has a better Altman-Z score (8.67) than 94.06% 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.
With an excellent Debt to FCF ratio value of 1.07, HLNE belongs to the best of the industry, outperforming 87.21% of the companies in the same industry.
HLNE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
HLNE's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. HLNE outperforms 71.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 8.67 |
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 comparable to the rest of the industry.
A Quick Ratio of 1.24 indicates that HLNE should not have too much problems paying its short term obligations.
HLNE's Quick ratio of 1.24 is in line compared to the rest of the industry. HLNE outperforms 54.79% 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.
The Earnings Per Share has been growing by 15.47% on average over the past years. This is quite good.
HLNE shows a strong growth in Revenue. In the last year, 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
Based on estimates for the next years, HLNE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.12% on average per year.
Based on estimates for the next years, HLNE will show a quite strong growth in Revenue. The Revenue will grow by 17.12% on average per year.
EPS Next Y29.69%
EPS Next 2Y16.56%
EPS Next 3Y16.27%
EPS Next 5Y15.12%
Revenue Next Year32.91%
Revenue Next 2Y19.85%
Revenue Next 3Y17.62%
Revenue Next 5Y17.12%
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
Based on the Price/Earnings ratio of 30.00, the valuation of HLNE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HLNE indicates a slightly more expensive valuation: HLNE is more expensive than 72.60% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.98. HLNE is around the same levels.
HLNE is valuated quite expensively with a Price/Forward Earnings ratio of 29.35.
Based on the Price/Forward Earnings ratio, HLNE is valued a bit more expensive than the industry average as 72.15% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of HLNE to the average of the S&P500 Index (22.66), we can say HLNE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 29.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLNE indicates a somewhat cheap valuation: HLNE is cheaper than 63.47% of the companies listed 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 | 41.03 | ||
| EV/EBITDA | 34.27 |
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 16.27% in the coming years.
PEG (NY)1.01
PEG (5Y)1.94
EPS Next 2Y16.56%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
HLNE has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 8.75, HLNE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, HLNE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
As HLNE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
HLNE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.06%
EPS Next 2Y16.56%
EPS Next 3Y16.27%
156.32
+4.67 (+3.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change4.4%
Ins Owners3.13%
Ins Owner Change-3.31%
Market Cap11.20B
Analysts53.33
Price Target175.61 (12.34%)
Short Float %3.27%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)3.8%
PT rev (3m)-10.1%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)3.04%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 29.35 | ||
| P/S | 16.19 | ||
| P/FCF | 41.03 | ||
| P/OCF | 39.53 | ||
| P/B | 17.25 | ||
| P/tB | 17.25 | ||
| EV/EBITDA | 34.27 |
EPS(TTM)5.21
EY3.33%
EPS(NY)5.33
Fwd EY3.41%
FCF(TTM)3.81
FCFY2.44%
OCF(TTM)3.95
OCFY2.53%
SpS9.66
BVpS9.06
TBVpS9.06
PEG (NY)1.01
PEG (5Y)1.94
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 | 8.67 |
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 Y29.69%
EPS Next 2Y16.56%
EPS Next 3Y16.27%
EPS Next 5Y15.12%
Revenue 1Y (TTM)41.16%
Revenue growth 3Y17.48%
Revenue growth 5Y17.04%
Sales Q2Q%34.33%
Revenue Next Year32.91%
Revenue Next 2Y19.85%
Revenue Next 3Y17.62%
Revenue Next 5Y17.12%
EBIT growth 1Y49.82%
EBIT growth 3Y16.47%
EBIT growth 5Y18.73%
EBIT Next Year42.52%
EBIT Next 3Y21.67%
EBIT Next 5Y22.56%
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%