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Hearts and Minds Investments Ltd
(Sydney:HM1)
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Rating:69Neutral
Price Target:
AU$3.00
â–¼(-5.36% Downside)
Action:Downgraded
Date:12/30/25
The score is driven primarily by strong profitability and a debt-free balance sheet, alongside attractive valuation (low P/E and high dividend yield). Offsetting these positives are weak cash flow conversion (negative operating cash flow in FY2024–FY2025) and only neutral technical signals.
Positive Factors
Low leverage / debt-free balance sheet
A debt-free position and minimal leverage provide durable financial flexibility: the company can absorb market shocks, fund distributions or opportunistic investments from equity, and faces lower fixed financing costs. This structural strength supports resilience across cycles over the next 2–6 months and beyond.
Negative Factors
Negative operating cash flow
Persistent negative operating cash flow despite reported profits indicates weak cash conversion and raises questions about earnings quality. Over the medium term this can constrain dividend sustainability, limit reinvestment without drawing on reserves, and increase vulnerability if investment income trends worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / debt-free balance sheet
A debt-free position and minimal leverage provide durable financial flexibility: the company can absorb market shocks, fund distributions or opportunistic investments from equity, and faces lower fixed financing costs. This structural strength supports resilience across cycles over the next 2–6 months and beyond.
Read all positive factors
Hearts and Minds Investments Ltd (HM1) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$700.69M
Dividend Yield5.85%
Average Volume (3M)144.31K
Price to Earnings (P/E)36.2
Beta (1Y)1.02
Revenue Growth66.62%
EPS Growth-84.92%
CountryAU
Employees4
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.08
Shares Outstanding228,982,160
10 Day Avg. Volume190,555
30 Day Avg. Volume144,308
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.88
Price to Sales (P/S)4.22
P/FCF Ratio-272.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hearts and Minds Investments Ltd Business Overview & Revenue Model
Company Description
Hearts and Minds Investments Limited (HM1.AX) operates as an Australian listed investment company with a dual objective: to assemble a focused investment portfolio comprising the most compelling ideas from various fund managers, and simultaneously...
How the Company Makes Money
null...
Hearts and Minds Investments Ltd Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
38
Negative
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 111.18M | 165.14M | 84.39M | -64.09M | -6.62M | -5.36M |
| Gross Profit | 111.18M | 165.14M | 84.39M | -64.09M | -6.67M | -5.37M |
| EBITDA | 33.21M | 152.08M | 82.79M | 55.75M | -136.31M | -19.10M |
| Net Income | 19.35M | 106.82M | 50.93M | 32.73M | -94.84M | -12.46M |
Balance Sheet | ||||||
| Total Assets | 836.83M | 857.95M | 730.51M | 681.35M | 647.09M | 987.05M |
| Cash, Cash Equivalents and Short-Term Investments | 781.93M | 36.01M | 619.48M | 539.20M | 309.58M | 123.59M |
| Total Debt | 0.00 | 0.00 | 6.99M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 67.78M | 71.25M | 33.10M | 5.83M | 5.96M | 101.05M |
| Stockholders Equity | 769.05M | 786.70M | 697.41M | 675.52M | 641.13M | 886.00M |
Cash Flow | ||||||
| Free Cash Flow | -12.52M | -2.55M | -3.30M | 7.60M | -94.84M | -56.91M |
| Operating Cash Flow | -12.52M | -2.55M | -3.30M | 7.60M | -94.84M | -56.91M |
| Investing Cash Flow | 40.68M | 4.32M | 42.57M | -43.86M | 73.57M | 161.32M |
| Financing Cash Flow | -38.93M | -35.49M | -31.57M | -28.56M | -25.28M | -22.46M |
Hearts and Minds Investments Ltd Technical Analysis
Positive
3.17
Price Trends
2.93
Positive
2.88
Positive
2.93
Positive
Market Momentum
0.02
Negative
66.48
Neutral
84.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HM1, the sentiment is Positive. The current price of 3.17 is above the 20-day moving average (MA) of 2.96, above the 50-day MA of 2.93, and above the 200-day MA of 2.93, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HM1.
Hearts and Minds Investments Ltd Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | AU$558.08M | 10.51 | 9.43% | 4.41% | 13.02% | 9.62% | |
73 Outperform | AU$470.02M | 16.53 | 5.88% | 6.56% | 66.51% | -4.07% | |
69 Neutral | AU$700.69M | 36.17 | 2.49% | 5.33% | 66.62% | -84.92% | |
68 Neutral | AU$472.90M | 11.69 | 9.94% | 6.28% | 6.53% | 130.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$508.82M | 20.95 | 55.44% | 2.70% | 14.08% | 61.35% | |
63 Neutral | AU$577.56M | 44.48 | 2.07% | 4.06% | 45.10% | 44.28% |
* Financial Sector Average
AU:HM1
Hearts and Minds Investments Ltd
3.06
-0.10
-3.13%
AU:PIC
Perpetual Equity Investment Co. Ltd.
1.22
0.01
0.91%
AU:AEF
Australian Ethical Investment Ltd
4.47
-3.30
-42.49%
AU:EQT
EQT Holdings Ltd.
17.65
-10.89
-38.16%
AU:FGX
Future Generation Australia Limited Stapled Security
1.36
0.11
9.19%
AU:MIR
Mirrabooka Investments Ltd
2.58
-0.55
-17.49%
Hearts and Minds Investments Ltd Corporate Events
Hearts and Minds Investments Holds NTA Steady Amid Market Volatility
Jul 26, 2026
Hearts and Minds Investments Limited has reported its estimated net tangible asset backing per share as at 24 July 2026, with pre-tax NTA at $3.53, post current tax NTA at $3.47, and post-tax NTA at $3.29, broadly unchanged from the prior week. Th...
Hearts and Minds Beats Benchmark in June as Medical Research Funding Tops $90.5m
Jul 13, 2026
Hearts and Minds Investments Limited reported that its portfolio rose 4.1% in June, outperforming the MSCI World Accumulation Index (AUD), which gained 3.3%. Since its November 2018 inception, the company has delivered an annualised pre-tax return...
Hearts and Minds posts marginal NTA dip, holds Rokt valuation steady
Jul 12, 2026
Hearts and Minds Investments Limited reported that its estimated net tangible asset backing per share as at 10 July 2026 was $3.60 pre-tax, $3.53 post current tax and $3.33 post tax, marginally lower than the levels recorded on 3 July 2026. The co...
Hearts and Minds holds NTA steady amid software market volatility
Jul 5, 2026
Hearts and Minds Investments Limited reported that its estimated net tangible asset backing per share remained unchanged as of 3 July 2026, with pre-tax NTA at $3.61, post current tax NTA at $3.54, and post tax NTA at $3.34. The company also noted...
Hearts and Minds Posts Higher NTA While Holding Rokt Valuation Steady
Jun 21, 2026
Hearts and Minds Investments Limited has reported an estimated net tangible asset backing per share as at 19 June 2026, showing a modest increase over the prior week across all reported measures. The pre-tax NTA rose to $3.58 from $3.53, post curr...
Hearts and Minds lifts NTA while holding Rokt valuation steady
May 31, 2026
Hearts and Minds Investments Limited reported an increase in its net tangible asset (NTA) backing per share as at 29 May 2026, with pre-tax NTA rising to $3.52, post current tax NTA to $3.43 and post tax NTA to $3.28, all higher than the previous ...
Hearts and Minds lifts NTA while keeping Rokt valuation steady amid volatility
May 24, 2026
Hearts and Minds Investments Limited reported its estimated net tangible asset backing per share as of 22 May 2026, noting pre-tax NTA of $3.43, post current tax NTA of $3.34, and post-tax NTA of $3.22. The company also highlighted recent market v...
Hearts and Minds lifts April returns and boosts medical research funding
May 12, 2026
Hearts and Minds Investments reported that its portfolio rose 4.3% in April, slightly trailing the MSCI World Accumulation Index (AUD) gain of 5.1%, and has delivered an annualised pre-tax return of 9.4% since its 2018 inception. The company’...
Hearts and Minds lifts NTA while holding Rokt valuation steady
May 10, 2026
Hearts and Minds Investments Limited reported an increase in its net tangible asset backing per share as at 8 May 2026, with pre-tax NTA rising to $3.36 from $3.33 a week earlier, and post-tax NTA edging up to $3.16 from $3.14. The company also no...
Hearts and Minds Posts Slight NTA Decline, Holds Rokt Valuation Steady
May 3, 2026
Hearts and Minds Investments Limited reported its estimated net tangible asset backing per share as at 1 May 2026, showing a slight week-on-week decline across pre-tax, post-current-tax and post-tax measures. The company also noted recent market v...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.