Hearts and Minds Investments Ltd (HM1) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 5.33%
• Average Volume (3M): 144.31K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.17
• Revenue Growth: 175.90%
• EPS Growth: 109.57%
• Country: AU
• Employees: 4
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.02
• Shares Outstanding: 228,982,160
• 10 Day Avg. Volume: 190,555
• 30 Day Avg. Volume: 144,308
• PEG Ratio: 0.06
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 4.22
• P/FCF Ratio: -272.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: AU$3.00 ▼(-5.36% Downside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 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

Minimal leverage / debt-free balance sheet

A virtually debt-free balance sheet provides durable financial flexibility: it lowers default and refinancing risk, supports capital return or opportunistic investments during market stress, and increases resilience of an asset manager whose performance can swing with markets.

High recent profitability and margins

Sustained high net margins and elevated reported earnings indicate the business can convert investment gains or fee income into profits efficiently. That profitability supports retained capital, distributions and strategic reinvestment, strengthening long-term operating capacity.

materially improved return on equity

Rising ROE signals better capital efficiency and management execution, showing the company is generating stronger returns on its sizeable equity base. Improved ROE supports sustainable shareholder returns and indicates progress in converting capital into profits.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow undermines earnings quality and reduces financial firepower. If profits do not convert to cash, the company may struggle to fund dividends, buybacks or growth from internal resources, increasing reliance on external funding or realized gains.

Revenue decline and earnings volatility

A material revenue drop and historical swings in profitability point to high sensitivity to market and investment-cycle volatility. For an asset manager, this reduces predictability of fee and investment income and complicates long-term planning and payout consistency.

Very small operating scale / key-person concentration

A tiny employee base indicates operational concentration and key-person risk: limited depth can constrain scalability, succession, compliance oversight and continuity. This structural constraint raises governance and execution risk as asset levels or product complexity grow.

Hearts and Minds Investments Ltd Business Overview & Revenue Model

Company Description

Hearts and Minds Investments Limited is an Australia-based listed investment company. The Company's investment objective is to provide a concentrated securities portfolio of the highest conviction ideas from fund managers, whilst also supporting Australian medical research organizations. It seeks to provide shareholders with an investment proposition by creating a concentrated portfolio of long positions in approximately 25 to 30 Australian and international listed securities based on the highest conviction ideas. It allocates about 35% of its investment portfolio based on the annual recommendations of fund managers who present at their Sohn Hearts & Minds Investment Leaders Conference (known as Conference Fund Managers). It allocates about 65% of its investment portfolio based on the highest conviction ideas of six fund managers (known as Core Fund Managers). These fund managers are Caledonia (Private) Investments, Cooper Investors, and Magellan Asset Management, among others.

How the Company Makes Money

Hearts and Minds Investments Ltd (HM1) generates revenue primarily through its investment activities. The company invests in a concentrated portfolio of equities, with stock selections made based on recommendations from leading fund managers and conference fund managers who participate in the Sohn Hearts & Minds Investment Leaders Conference. The capital appreciation and dividends from these investments form the primary revenue streams for HM1. Additionally, HM1 benefits from a unique cost structure where fund managers provide their stock recommendations and expertise pro bono, allowing the company to allocate a portion of its management and performance fees towards funding medical research and charitable causes. This alignment of financial and social objectives helps drive the company's earnings while supporting impactful initiatives.

Hearts and Minds Investments Ltd Financial Statement Overview

Summary

Strong reported profitability in FY2024–FY2025 and a very conservative balance sheet (no debt, large equity base) support resilience. However, operating cash flow was negative in FY2024 and FY2025 despite high profits, and results have been volatile across the cycle with revenue declining in FY2025, which lowers confidence in earnings durability.

Income Statement

Profitability is strong in the last few years, with very high profit conversion in FY2024–FY2025 (net profit margin ~60–65%) and solid earnings levels (FY2025 net income ~A$106.8m vs FY2024 ~A$50.9m). However, results are volatile across the cycle (losses in FY2020–FY2022 and negative/unstable revenue in earlier years), and FY2025 revenue declined (-13.7% year-over-year), highlighting sensitivity to market-driven investment income.

Balance Sheet

Balance sheet is conservatively positioned with minimal leverage (debt-to-equity near zero; FY2025 total debt is zero) and a large equity base (~A$786.7m in FY2025). Returns on equity have improved meaningfully (FY2025 ~13.6% vs FY2024 ~7.3%), though the history includes negative returns in FY2021–FY2022, indicating performance can swing with markets despite the low-debt structure.

Cash Flow

Cash generation is the weakest area: operating cash flow has been negative in FY2024 and FY2025 (about -A$3.3m and -A$2.6m, respectively) despite strong reported profits, implying earnings have not recently translated into cash. Cash flow was positive in FY2023 (~A$7.6m) but highly inconsistent over time, including very large outflows in FY2021–FY2022.

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	6.40M	152.08M	71.68M	45.66M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 3.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HM1, the sentiment is Negative. The current price of 3.17 is above the 20-day moving average (MA) of 2.86, above the 50-day MA of 2.98, and above the 200-day MA of 3.07, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 35.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HM1.

Hearts and Minds Investments Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAM	72 Outperform	AU$68.59M	7.05	32.22%	6.39%	22.67%	19.47%
HM1	69 Neutral	―	34.32	14.39%	5.33%	175.90%	109.57%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SB2	61 Neutral	AU$63.06M	-40.11	3.57%	6.89%	30.36%	-31.47%
LCE	55 Neutral	AU$26.98M	70.25	2.17%	2.94%	38.32%	―
CIW	53 Neutral	AU$28.88M	29.10	2.42%	2.03%	18.17%	―

Hearts and Minds Investments Ltd Corporate Events

Hearts and Minds Beats Market in January as Conference Picks Surge

Hearts and Minds Investments reported a modest portfolio gain of 0.21% in January, outperforming the MSCI World Accumulation Index (AUD), which fell 2.14%, and maintaining an annualised pre-tax return of 10.68% since its 2018 inception. The company’s shares traded at $3.14 with pre-tax NTA of $3.61 and a fully franked annualised dividend yield of about 5.7%, supported by a latest final dividend of 9.0 cents per share.

Recent performance was driven by strong contributions from the 2025 Conference portfolio, notably ACM Research, up 75% since purchase, and Brookdale Senior Living, up 63% since November, while new core manager Prusik Investment Management also outperformed, aided by gains in Hong Kong names AIA, Swire Pacific, and CK Hutchison. The update underscores HM1’s ability to generate competitive returns while continuing to fund medical research, reinforcing its differentiated position in the listed investment company market for investors seeking both performance and social impact.

The most recent analyst rating on (AU:HM1) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Reports Slight Weekly Decline in NTA Backing

Hearts and Minds Investments Limited reported its estimated net tangible asset (NTA) backing per share as at 6 February 2026, indicating a pre-tax NTA of $3.53, post current tax NTA of $3.43 and post tax NTA of $3.31. These figures represent a modest decline from the prior week’s levels, signaling a slight softening in portfolio value that may be of interest to investors tracking short-term movements in the company’s underlying asset base.

The week-on-week fall in NTA suggests recent market conditions or portfolio performance have had a negative impact on the company’s asset values, although the update remains unaudited and indicative. Regular disclosure of NTA metrics underscores the firm’s commitment to transparency and provides shareholders with a timely gauge of performance, aiding investment decisions in a volatile market environment.

The most recent analyst rating on (AU:HM1) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Investments Reports Slight Weekly Decline in NTA Backing

Hearts and Minds Investments Limited reported a modest decline in its net tangible asset (NTA) backing per share as at 30 January 2026 compared with the prior week. The pre-tax NTA fell to $3.61 from $3.68, post current tax NTA slipped to $3.52 from $3.59, and post-tax NTA eased to $3.36 from $3.41, signalling a slight softening in portfolio value that shareholders and market watchers will monitor for indications of short-term performance trends in the underlying investment portfolio.

The most recent analyst rating on (AU:HM1) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Reports Slight Weekly Dip in NTA Backing

Hearts and Minds Investments Limited has reported a slight decline in its net tangible asset (NTA) backing per share for the week ended 23 January 2026, with pre‑tax NTA falling to $3.68 from $3.75, post‑current tax NTA easing to $3.59 from $3.66, and post‑tax NTA decreasing to $3.41 from $3.46. The updated NTA figures, which are unaudited and indicative, provide investors with a timely snapshot of the company’s portfolio valuation and may signal modest short‑term softening in underlying asset values, a key metric for assessing performance and sentiment toward the listed investment vehicle.

The most recent analyst rating on (AU:HM1) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Investments Reports Steady NTA Backing as at 16 January 2026

Hearts and Minds Investments Limited has reported an unaudited estimated net tangible asset (NTA) backing per share as at 16 January 2026, with pre-tax NTA of $3.75, post current tax NTA of $3.66, and post-tax NTA of $3.46, broadly unchanged from the prior week. The largely stable NTA levels indicate that the company’s investment portfolio value and tax-adjusted position have remained steady over the period, signalling a relatively flat short-term performance environment for shareholders.

The most recent analyst rating on (AU:HM1) stock is a Buy with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Updates Performance Figures as Portfolio Mix Evolves

Hearts and Minds Investments reported a revised December 2025 monthly update after correcting its stated investment performance figures, confirming an annualised pre-tax return of 10.78% since its 2018 inception and a fully franked annualised dividend yield of 5.64% at 31 December, with pre-tax NTA at $3.60, post-tax NTA at $3.36 and the share price at $3.19. The portfolio fell 1.8% in December, underperforming the MSCI World Accumulation Index (AUD), while the 2025 Conference portfolio started strongly, led by ACM Research, and core manager Magellan Investment Partners added new European holdings SAP and adidas, signalling ongoing refinement of the global equity mix and reinforcing the strategy of combining shareholder returns with growing medical research funding.

The most recent analyst rating on (AU:HM1) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Posts December Dip but Maintains Solid Long-Term Returns and Grows Medical Research Funding

Hearts and Minds Investments Limited reported a 2.8% portfolio decline in December 2025, underperforming the MSCI World Accumulation Index (AUD), which fell 1.0% over the month, though since its 2018 inception the company has delivered an annualised pre-tax investment return of 10.64% and a fully franked annualised dividend yield of 5.64%. The update highlighted a strong early contribution from the 2025 Conference portfolio, particularly ACM Research, which rose 18% in December and more than 50% since purchase into early January 2026, while core manager Magellan Investment Partners added new positions in German-listed SAP and adidas, signalling continued conviction in global growth names even as the fund maintains a modest 5% cash weighting and lifts its cumulative medical research funding to $83.7 million.

The most recent analyst rating on (AU:HM1) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Investments Reports Higher NTA Backing per Share

Hearts and Minds Investments Limited reported an increase in its net tangible asset (NTA) backing per share as at 9 January 2026, with pre‑tax NTA rising to $3.74 from $3.63 a week earlier, post current tax NTA increasing to $3.65 from $3.53, and post‑tax NTA improving to $3.46 from $3.38. The uplift in all three NTA measures indicates a positive recent performance of the company’s investment portfolio, signalling strengthened asset backing for shareholders and potentially enhancing the company’s appeal in the listed investment company sector.

The most recent analyst rating on (AU:HM1) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Investments Posts Stable NTA Backing at Start of 2026

Hearts and Minds Investments Limited has reported its unaudited net tangible asset (NTA) backing per share as at 2 January 2026, showing a steady position over the previous week. The company’s pre-tax NTA remained unchanged at $3.63 per share, while post current tax NTA dipped slightly to $3.53 from $3.54 and post tax NTA was steady at $3.38, indicating broadly stable portfolio valuations and tax provisions over the period, with no material shifts in its underlying asset base signalled for investors.

The most recent analyst rating on (AU:HM1) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Hearts and Minds Investments Ltd stock, see the AU:HM1 Stock Forecast page.

Hearts and Minds Investments Reports Stable NTA Backing at 26 December 2025

Hearts and Minds Investments Limited reported its estimated net tangible asset (NTA) backing per share as at 26 December 2025, showing a slight decline in pre-tax NTA to $3.63 from $3.64 a week earlier, while post current tax NTA remained steady at $3.54 and post tax NTA was unchanged at $3.38. The largely stable NTA levels indicate that the company’s portfolio value has been broadly steady over the period, suggesting limited short-term volatility for shareholders and offering investors a current snapshot of underlying asset backing as the year ends.

Hearts and Minds Investments Posts Slight Increase in NTA Backing

Hearts and Minds Investments Limited reported a modest increase in its net tangible asset (NTA) backing per share as at 19 December 2025, with pre-tax NTA rising to $3.64 from $3.62 a week earlier, post current tax NTA edging up to $3.54 from $3.52, and post-tax NTA moving to $3.38 from $3.37. The incremental gains across all NTA measures indicate a slight improvement in portfolio performance over the period, providing investors with a positive, albeit small, uplift in the value of their holdings heading into year-end.

Hearts and Minds Investments Faces November Setbacks Amid Strong Long-term Returns

Hearts and Minds Investments Ltd reported a challenging month in November 2025, with its portfolio down 5.7%, underperforming the MSCI World Accumulation Index. The portfolio’s performance was negatively impacted by the write-down of Corporate Travel Management shares, which have been suspended from trading. Despite these setbacks, the company maintains a strong annualized pre-tax investment return of 11.21% since inception and continues to support medical research through its unique investment model.

Hearts and Minds Investments Reports Decrease in NTA Backing

Hearts and Minds Investments Limited reported its Net Tangible Asset (NTA) backing per share as of December 5, 2025. The pre-tax NTA decreased from $3.71 to $3.63, while the post-current tax NTA fell from $3.59 to $3.53, and the post-tax NTA dropped from $3.41 to $3.38. The company has taken a conservative approach by valuing its suspended shares in Corporate Travel Management at zero, which could positively impact the pre-tax NTA by 9 cents per share if trading resumes at the previous halt price.

Hearts and Minds Investments Updates Insider Trading Policy

Hearts and Minds Investments Limited has announced an amendment to its Securities Trading & Insider Trading Policy, effective immediately. This policy update impacts directors, executives, and other designated individuals, emphasizing compliance with legal prohibitions against insider trading and adherence to internal trading procedures, which could influence the company’s governance and stakeholder trust.

Hearts and Minds Investments Reports NTA and Updates on Corporate Travel Holding

Hearts and Minds Investments Limited announced its Net Tangible Asset (NTA) backing per share as of November 28, 2025, with pre-tax NTA at $3.71, post-current tax NTA at $3.59, and post-tax NTA at $3.41. The company holds 1,251,663 shares in Corporate Travel Management, which has been suspended from trading since August 2025. In the absence of a market price, the company has conservatively valued this holding at zero but anticipates potential value realization if trading resumes, potentially impacting pre-tax NTA positively by 9 cents per share.

Hearts and Minds Investments Ltd Reports AGM Outcomes Amidst Activist Shareholder Dissent

Hearts and Minds Investments Ltd announced the results of its 2025 Annual General Meeting, where all resolutions were passed. Notably, the company faced a first strike against its Remuneration Report, primarily due to a negative vote from a US-based activist shareholder. Despite this, the board highlighted that their non-executive directors serve without remuneration, and executives work part-time at below-market rates, reflecting the company’s commitment to maintaining low operational costs.

Hearts and Minds Investments Announces Change in Company Secretary

Hearts and Minds Investments Ltd announced a change in its company secretary, with Ms. Eryl Baron resigning and Ms. Natalie Climo taking over the role. This change is significant as Ms. Climo will be responsible for communication with the ASX regarding Listing Rules Matters, potentially impacting the company’s regulatory interactions and compliance processes.

Hearts and Minds Investments Reports Strong 2025 Performance

At the 2025 Annual General Meeting, Hearts and Minds Investments Limited reported a robust investment performance with a 25.5% return for the year ending June 30, 2025, driven by gains in companies like Tencent Music, Coeur Mining, and Airbus. The company’s investment performance continued to improve post-financial year, achieving a 22.6% increase by October 31, 2025, with an annualized performance of 12.3% since inception, highlighting its strong market positioning and commitment to supporting medical research.

Hearts and Minds Investments Refreshes Conference Portfolio

Hearts and Minds Investments Limited has announced a refresh of its Conference Portfolio, which makes up 35% of its total investment portfolio. The portfolio includes stocks pitched at the recent Sohn Hearts & Minds Investment Leaders Conference and will be held for 12 months, indicating a strategic move to align with the company’s investment strategy.