Hearts and Minds Investments Ltd (AU:HM1)
ASX:HM1
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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:DowngradedDate: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
Debt-free balance sheet
A zero-debt, large-equity capital structure provides durable financial flexibility and lowers bankruptcy risk. Over a 2–6 month horizon this conservatism supports the firm’s ability to fund operations, absorb market shocks, and pursue opportunistic investments or returns to shareholders without refinancing pressure.
Negative Factors
Negative operating cash flow
Earnings not converting into cash is a structural weakness: persistent negative operating cash flow impairs the company's ability to fund dividends, cover operating needs, or invest without tapping reserves. Over months this can force tighter capital management and reduce financial resiliency despite accounting profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt, large-equity capital structure provides durable financial flexibility and lowers bankruptcy risk. Over a 2–6 month horizon this conservatism supports the firm’s ability to fund operations, absorb market shocks, and pursue opportunistic investments or returns to shareholders without refinancing pressure.
Read all positive factors
Hearts and Minds Investments Ltd (HM1) vs. iShares MSCI Australia ETF (EWA)
Market Cap
N/A
Dividend Yield5.33%
Average Volume (3M)144.31K
Price to Earnings (P/E)40.8
Beta (1Y)1.06
Revenue Growth66.62%
EPS Growth-84.92%
CountryAU
Employees4
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.02
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 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 A...
How the Company Makes Money
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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 | 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
Neutral
3.17
Price Trends
2.80
Positive
2.93
Negative
3.06
Negative
Market Momentum
0.01
Negative
52.34
Neutral
27.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HM1, the sentiment is Neutral. The current price of 3.17 is above the 20-day moving average (MA) of 2.81, above the 50-day MA of 2.80, and above the 200-day MA of 3.06, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$56.18M | 2.97 | 35.99% | 6.39% | 0.11% | 21.50% | |
69 Neutral | ― | 40.76 | 2.49% | 5.33% | 66.62% | -84.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$53.39M | 19.67 | 3.43% | 6.89% | -26.20% | -112.45% | |
54 Neutral | AU$26.98M | 38.35 | 1.46% | 2.94% | 68.66% | 278.13% | |
53 Neutral | AU$26.37M | 46.88 | 4.11% | 2.03% | 35.83% | ― |
* Financial Sector Average
AU:HM1
Hearts and Minds Investments Ltd
2.93
0.23
8.64%
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0.85
0.01
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Hearts and Minds Investments Ltd Corporate Events
Hearts and Minds Lifts NTA While Holding Rokt Valuation Steady Amid Volatility
Apr 26, 2026
Hearts and Minds Investments Limited reported its unaudited net tangible asset (NTA) backing per share as at 24 April 2026, with pre-tax NTA at $3.35, post current tax NTA at $3.25 and post-tax NTA at $3.15, all slightly higher than the previous w...
Hearts and Minds Director Lifts Stake via Dividend Reinvestment
Apr 21, 2026
Hearts and Minds Investments Limited has disclosed a change in director David Wright’s relevant interest in the company’s shares, following participation in its dividend reinvestment plan. Wright, through D.A.W. Holdings Pty Ltd as tru...
Hearts and Minds Investments lifts NTA as portfolio valuation holds steady
Apr 19, 2026
Hearts and Minds Investments Limited reported an increase in its net tangible asset (NTA) backing per share as at 17 April 2026, with pre-tax NTA rising to $3.29 from $3.23 a week earlier, and post-tax NTA increasing to $3.11 from $3.07. The figur...
Hearts and Minds flags March underperformance but lifts dividend amid volatile markets
Apr 14, 2026
Hearts and Minds Investments Limited reported a 4.92% portfolio decline in March 2026, underperforming the MSCI World Accumulation Index (AUD), which fell 3.17%, as heightened geopolitical volatility and a risk-off environment weighed on execution...
Hearts and Minds Reports Higher NTA and Holds Rokt Valuation Steady Amid Volatile Markets
Apr 12, 2026
Hearts and Minds Investments Limited reported its estimated net tangible asset backing per share as at 10 April 2026, with pre‑tax NTA at $3.23, post current tax NTA at $3.13, and post tax NTA at $3.07, all stated on an ex‑dividend bas...
Hearts and Minds Updates Dividend Details for December 2025 Half-Year
Apr 8, 2026
Hearts and Minds Investments Ltd has updated its notification to the market regarding an upcoming dividend on its ordinary fully paid shares, relating to the six‑month period ended 31 December 2025. The company confirmed that this announceme...
Hearts and Minds Investments Posts Slight NTA Gain, Maintains Rokt Valuation Amid Volatility
Apr 6, 2026
Hearts and Minds Investments Limited reported that its estimated net tangible asset backing per share increased slightly as at 2 April 2026, with pre‑tax NTA at $3.18, post current tax NTA at $3.08 and post tax NTA at $3.03, all on an exR...
Hearts and Minds Investments Holds NTA Steady Amid Market Volatility
Mar 29, 2026
Hearts and Minds Investments Limited reported that its unaudited net tangible asset backing per share as at 27 March 2026 remained stable week-on-week at $3.11 pre-tax, with small increases in post-current tax and post-tax NTAs to $3.02 and $2.99 ...
Hearts and Minds Reports Slight NTA Decline Amid Volatile Markets
Mar 22, 2026
Hearts and Minds Investments Limited reported its estimated net tangible asset backing per share as at 20 March 2026, showing a slight week-on-week decline, with pre-tax NTA at $3.11, post current tax NTA at $3.01, and post tax NTA at $2.98, all f...
Hearts and Minds posts lower NTA while maintaining Rokt valuation
Mar 15, 2026
Hearts and Minds Investments Limited reported an estimated net tangible asset (NTA) backing per share as at 13 March 2026 of $3.16 pre-tax, $3.07 post current tax, and $3.02 post tax, down slightly from the previous week, with all figures unaudite...
Hearts and Minds Hit by AI-Driven Software Sell-off but Stands by Long-Term Strategy
Mar 11, 2026
Hearts and Minds Investments Limited reported that its portfolio fell 5% in February, underperforming the MSCI World Accumulation Index (AUD), which declined 1.3%, amid broad weakness in global software stocks and a rotation away from high-multipl...
Hearts and Minds Reports Lower NTA After Dividend Adjustment
Mar 8, 2026
Hearts and Minds Investments Limited has reported indicative unaudited net tangible asset backing per share as at 6 March 2026, showing a pre-tax NTA of $3.25, post current tax NTA of $3.15 and post-tax NTA of $3.06. These figures are lower than t...
Hearts and Minds Flags Lower NTA Following Interim Dividend Adjustment
Mar 1, 2026
Hearts and Minds Investments Limited reported a decline in its net tangible asset backing per share as at 27 February 2026, with pre-tax NTA falling to $3.33 from $3.44 a week earlier, post current tax NTA easing to $3.24 from $3.35, and post tax ...
Hearts and Minds Beats Market in January as Conference Picks Surge
Feb 11, 2026
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 compan...
Hearts and Minds Reports Slight Weekly Decline in NTA Backing
Feb 8, 2026
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 mod...
Hearts and Minds Investments Reports Slight Weekly Decline in NTA Backing
Feb 1, 2026
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 fr...
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.