NasdaqGS:HLNE

Stock Analysis Report

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Executive Summary

Hamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. More Details


Snowflake Analysis

Solid track record with high growth potential.


Similar Companies

Share Price & News

How has Hamilton Lane's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HLNE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HLNE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

HLNE

3.5%

US Capital Markets

2.1%

US Market


1 Year Return

24.1%

HLNE

11.5%

US Capital Markets

19.8%

US Market

Return vs Industry: HLNE exceeded the US Capital Markets industry which returned 11.4% over the past year.

Return vs Market: HLNE exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

HLNEIndustryMarket
7 Day-1.0%3.5%2.1%
30 Day-1.8%13.2%8.1%
90 Day-2.2%9.5%6.0%
1 Year26.6%24.1%14.3%11.5%22.5%19.8%
3 Year120.9%108.1%30.2%20.2%46.5%36.8%
5 Yearn/a87.2%64.0%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Hamilton Lane's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hamilton Lane undervalued compared to its fair value and its price relative to the market?

36.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HLNE ($71.74) is trading above our estimate of fair value ($44.55)

Significantly Below Fair Value: HLNE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HLNE is poor value based on its PE Ratio (36.8x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: HLNE is poor value based on its PE Ratio (36.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: HLNE is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HLNE is overvalued based on its PB Ratio (13x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Hamilton Lane forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

38.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLNE's forecast earnings growth (38.7% per year) is above the savings rate (2.2%).

Earnings vs Market: HLNE's earnings (38.7% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HLNE's revenue (11.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: HLNE's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HLNE's Return on Equity is forecast to be very high in 3 years time (44.1%).


Next Steps

Past Performance

How has Hamilton Lane performed over the past 5 years?

66.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLNE has high quality earnings.

Growing Profit Margin: HLNE's current net profit margins (19.8%) are higher than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: HLNE's earnings have grown significantly by 66.7% per year over the past 5 years.

Accelerating Growth: HLNE's earnings growth over the past year (47%) is below its 5-year average (66.7% per year).

Earnings vs Industry: HLNE earnings growth over the past year (47%) exceeded the Capital Markets industry 3%.


Return on Equity

High ROE: HLNE's Return on Equity (44.3%) is considered outstanding.


Next Steps

Financial Health

How is Hamilton Lane's financial position?


Financial Position Analysis

Short Term Liabilities: HLNE's short term assets ($127.3M) exceed its short term liabilities ($57.4M).

Long Term Liabilities: HLNE's short term assets ($127.3M) do not cover its long term liabilities ($287.5M).


Debt to Equity History and Analysis

Debt Level: HLNE's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: HLNE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HLNE's debt is well covered by operating cash flow (188.7%).

Interest Coverage: HLNE's interest payments on its debt are well covered by EBIT (70.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Hamilton Lane current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HLNE's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: HLNE's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HLNE has been paying a dividend for less than 10 years.

Growing Dividend: HLNE's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.3%), HLNE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HLNE's dividends in 3 years are forecast to be covered by earnings (59.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Mario Giannini (66 yo)

19.83yrs

Tenure

US$500,601

Compensation

Mr. Mario Lucio Giannini, J.D. has been the Chief Executive Officer of Hamilton Lane Advisors, L.L.C. since 2001. Mr. Giannini serves as the Chief Executive Officer of Private Equity Women Investor Network...


CEO Compensation Analysis

Compensation vs Market: Mario's total compensation ($USD500.60K) is below average for companies of similar size in the US market ($USD5.15M).

Compensation vs Earnings: Mario's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mario Giannini
CEO & Director19.83yrsUS$500.60k0.29%
$ 11.1m
Erik Hirsch
Vice Chairman & Head of Strategic Initiativesno dataUS$2.44m0.22%
$ 8.7m
Atul Varma
CFO & Treasurer0.83yrUS$278.35k0.0024%
$ 93.2k
Kevin Lucey
Chief Operating Officer9.83yrsUS$1.54m0.23%
$ 8.9m
Juan Delgado-Moreira
Vice Chairman & Head of Asia Businessno dataUS$1.92m3.74%
$ 145.4m
Hartley Rogers
Chairman & MD3.75yrsUS$1.62m0.15%
$ 5.9m
Andrea Kramer
Head of Fund Investmentsno datano datano data
Marietta Fieger
Chief Administrative Officer – Client Services0.58yrno datano data
John Oh
Vice President of Investor Relations1.83yrsno datano data
Lydia Gavalis
General Counsel & Secretary3.67yrsno data0.079%
$ 3.1m
Kristin Williamson
Principal & Head of Corporate Marketing & Communicationsno datano datano data
Salvador Almeida
VP & Director of Business Development of Latin America0.83yrno datano data

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: HLNE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mario Giannini
CEO & Director19.83yrsUS$500.60k0.29%
$ 11.1m
Erik Hirsch
Vice Chairman & Head of Strategic Initiativesno dataUS$2.44m0.22%
$ 8.7m
Hartley Rogers
Chairman & MD3.75yrsUS$1.62m0.15%
$ 5.9m
David Berkman
Independent Director3.5yrsUS$125.00k0.072%
$ 2.8m
Leslie Varon
Independent Director3.5yrsUS$138.68k0.013%
$ 508.3k
Ormond Sexton
Independent Director3.67yrsUS$122.36k0.037%
$ 1.4m

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: HLNE's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HLNE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hamilton Lane Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hamilton Lane Incorporated
  • Ticker: HLNE
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$3.883b
  • Market Cap: US$2.504b
  • Shares outstanding: 54.13m
  • Website: https://www.hamiltonlane.com

Number of Employees


Location

  • Hamilton Lane Incorporated
  • One Presidential Boulevard
  • 4th Floor
  • Bala Cynwyd
  • Pennsylvania
  • 19004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLNENasdaqGS (Nasdaq Global Select)YesClass A Common SharesUSUSDMar 2017
1M0DB (Deutsche Boerse AG)YesClass A Common SharesDEEURMar 2017

Biography

Hamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. It provides following services: separate accounts (customized to each individual client and structured ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:05
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.