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
▼(-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, low-leverage balance sheet provides durable financial flexibility and downside protection across market cycles. With no debt service requirements the company can better withstand revenue volatility, fund distributions, or opportunistic investments without refinancing risk.
Negative Factors
Weak cash generation
Persistent negative operating cash flow despite reported profits indicates earnings have not reliably converted to cash. Over time this weak cash conversion can constrain dividend sustainability, limit reinvestment, and increase reliance on balance sheet reserves.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt, low-leverage balance sheet provides durable financial flexibility and downside protection across market cycles. With no debt service requirements the company can better withstand revenue volatility, fund distributions, or opportunistic investments without refinancing risk.
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)1.15
Revenue Growth175.90%
EPS Growth109.57%
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
Negative
3.17
Price Trends
2.84
Negative
2.95
Negative
3.06
Negative
Market Momentum
>-0.01
Negative
53.92
Neutral
83.58
Negative
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 2.76, above the 50-day MA of 2.84, and above the 200-day MA of 3.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.58 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$57.49M | 2.97 | 35.99% | 6.39% | 22.67% | 19.47% | |
69 Neutral | ― | 40.76 | 2.49% | 5.33% | 175.90% | 109.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$54.23M | 19.67 | 3.43% | 6.89% | 30.36% | -31.47% | |
54 Neutral | AU$26.98M | 38.35 | 1.46% | 2.94% | 38.32% | ― | |
53 Neutral | AU$26.79M | 46.88 | 4.11% | 2.03% | 18.17% | ― |
* Financial Sector Average
AU:HM1
Hearts and Minds Investments Ltd
2.83
0.42
17.23%
AU:LCE
London City Equities Ltd
0.85
0.01
1.19%
AU:CIW
Clime Investment Management Ltd
0.33
>-0.01
-2.40%
AU:MAM
Microequities Asset Management Group Ltd.
0.44
0.02
4.27%
AU:SB2
Salter Brothers Emerging Companies Ltd.
0.65
0.04
6.97%
Hearts and Minds Investments Ltd Corporate Events
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...
Hearts and Minds Reports Slight Weekly Dip in NTA Backing
Jan 26, 2026
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...
Hearts and Minds Investments Reports Steady NTA Backing as at 16 January 2026
Jan 18, 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 ...
Hearts and Minds Updates Performance Figures as Portfolio Mix Evolves
Jan 14, 2026
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 divi...
Hearts and Minds Posts December Dip but Maintains Solid Long-Term Returns and Grows Medical Research Funding
Jan 13, 2026
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 annualis...
Hearts and Minds Investments Reports Higher NTA Backing per Share
Jan 11, 2026
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...
Hearts and Minds Investments Posts Stable NTA Backing at Start of 2026
Jan 4, 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 shar...
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.