Hamilton Lane (HLNE) AI Stock Analysis

• Market Cap: $7.50B
• Dividend Yield: 1.57%
• Average Volume (3M): 543.99K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.08
• Revenue Growth: 13.01%
• EPS Growth: 21.96%
• Country: US
• Employees: 700
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.54
• Shares Outstanding: 43,967,290
• 10 Day Avg. Volume: 642,019
• 30 Day Avg. Volume: 543,993
• PEG Ratio: 0.59
• Price to Book (P/B): 8.32
• Price to Sales (P/S): 8.37
• P/FCF Ratio: 19.17
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 10.95
• Enterprise Value/Gross Profit: 14.96
• Enterprise Value/Ebitda: 18.41
• 1Y Price Target: $163.00
• Price Target Upside: 21.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 5.55
• Revenue Forecast (FY): $747.27M

• Rating: 77 Outperform
• Price Target: $141.00 ▲(4.89% Upside)

Hamilton Lane's overall stock score reflects its strong financial performance and positive earnings call, which highlight significant growth and strategic initiatives. The technical analysis presents mixed signals, and the valuation is fair, contributing to a balanced outlook. The company's robust asset growth and strategic partnerships are key strengths, while the decline in retro fees and modest growth in certain areas are risks to monitor.

Positive Factors

Strategic Partnerships

The partnership with Guardian Life, involving $500 million annual commitments over 10 years, strengthens Hamilton Lane's market position and ensures a steady inflow of assets, enhancing long-term revenue stability and growth potential.

Fee-Related Revenue Growth

The significant growth in fee-related revenue underscores Hamilton Lane's ability to capitalize on its asset management expertise, providing a reliable income stream that supports ongoing operational and strategic initiatives.

AUM Growth

The robust growth in AUM reflects Hamilton Lane's strong market position and effective client acquisition strategies, which are crucial for sustaining long-term revenue growth and enhancing competitive advantage.

Negative Factors

Decline in Retro Fees

The sharp decline in retro fees could indicate challenges in maintaining certain revenue streams, potentially impacting profitability if not offset by other income sources.

Modest Growth in Customized Accounts

The slow growth in customized separate accounts may suggest limited demand or competitive pressures, which could hinder overall revenue diversification and growth prospects.

Increased G&A Expenses

Rising G&A expenses can pressure margins and reduce profitability if not managed effectively, potentially impacting the company's ability to invest in growth initiatives.

Hamilton Lane Business Overview & Revenue Model

Company Description

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 as single client vehicles); specialized strategies (fund-of-funds, secondaries, co-investments, taft-hartley, distribution management); advisory relationships (including due diligence, strategic portfolio planning, monitoring and reporting services); and reporting and analytics solutions. For direct investments, the firm invests in early, mid and late venture, mature companies, growth equity, emerging growth, distressed debt, later stage, turnarounds, bridge financing, mezzanine financing, and buyouts in middle market companies. For fund of fund investments, it invests in mezzanine, venture capital, private equity, turnaround, secondary investments, real estate, and special situation funds. The firm invests in real estate investments. It also invest in technology, healthcare, education, natural resources, energy and essential consumer goods sectors, cleantech, and environment, community development, and financial empowerment. It invests in private equity markets in North America, Latin America, United States, Western Europe, Middle East, Africa, United Kingdom, Asia, Japan, and Australia. The firm prefer to invest $1 million to $100 million in companies. It prefers to have majority stake in companies. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, and Asia.

How the Company Makes Money

Hamilton Lane generates revenue primarily through management fees and performance fees from its investment products. The management fees are typically calculated as a percentage of assets under management (AUM), providing a steady income stream as the firm manages capital on behalf of its clients. Performance fees, on the other hand, are contingent on the successful performance of the funds, allowing the company to earn additional revenue when investments exceed certain return thresholds. Additionally, Hamilton Lane has established strategic partnerships with various financial institutions and investors, which can enhance its ability to attract capital and expand its investment offerings, further contributing to its earnings.

Hamilton Lane Financial Statement Overview

Summary

Hamilton Lane exhibits strong financial health with robust profitability, efficient leverage management, and solid cash flow generation. The company is well-positioned in the asset management industry, with consistent revenue growth and effective cost management. While the slight decline in gross profit margin warrants attention, the overall financial trajectory remains positive, supporting future growth and stability.

Income Statement

Hamilton Lane demonstrates strong profitability with a consistent gross profit margin around 59% to 64% and a net profit margin exceeding 30% in recent periods. Revenue growth is positive, with a notable increase of 5.9% in the TTM period. The EBIT and EBITDA margins are robust, indicating efficient operations. However, there is a slight decline in gross profit margin over time, which could be a point of concern if the trend continues.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio, decreasing from 0.70 to 0.34, indicating improved leverage management. Return on equity remains strong, reflecting effective use of equity to generate profits. The equity ratio suggests a solid equity base, though the total debt level should be monitored to maintain financial stability.

Cash Flow

Hamilton Lane's cash flow performance is commendable, with a significant increase in free cash flow growth and a high operating cash flow to net income ratio. The free cash flow to net income ratio is close to 1, indicating efficient cash generation relative to net income. The company has shown resilience in maintaining strong cash flow metrics, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	703.36M	712.96M	553.84M	528.75M	367.92M	341.63M
Gross Profit	514.85M	504.74M	387.45M	379.44M	259.52M	205.32M
EBITDA	418.57M	384.89M	301.02M	258.67M	323.81M	159.86M
Net Income	230.58M	217.42M	140.86M	109.12M	145.99M	98.02M
Balance Sheet
Total Assets	1.98B	1.69B	1.27B	1.14B	1.29B	1.14B
Cash, Cash Equivalents and Short-Term Investments	240.77M	277.27M	114.63M	111.75M	72.17M	87.34M
Total Debt	436.72M	368.32M	275.19M	292.35M	253.57M	238.46M
Total Liabilities	822.27M	766.46M	595.24M	566.35M	557.46M	546.32M
Stockholders Equity	825.82M	717.28M	525.15M	415.44M	346.88M	238.13M
Cash Flow
Free Cash Flow	348.49M	311.36M	109.78M	221.84M	161.00M	168.52M
Operating Cash Flow	360.00M	323.52M	120.85M	226.59M	169.52M	188.16M
Investing Cash Flow	-257.38M	-139.81M	-122.18M	177.91M	-70.49M	-421.78M
Financing Cash Flow	-2.10M	-19.62M	4.40M	-364.15M	-113.22M	270.66M

Hamilton Lane Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 134.43
• 50DMA: Positive
• 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 HLNE, the sentiment is Positive. The current price of 134.43 is above the 20-day moving average (MA) of 126.41, above the 50-day MA of 123.85, and below the 200-day MA of 141.78, indicating a neutral trend. The MACD of 2.24 indicates Negative momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 78.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLNE.

Hamilton Lane Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEIC	79 Outperform	$10.22B	15.34	29.38%	1.18%	9.33%	33.17%
HLNE	77 Outperform	$7.50B	24.35	31.85%	1.57%	13.01%	21.96%
MAIN	75 Outperform	$5.39B	9.98	19.07%	7.03%	11.60%	9.38%
AMG	74 Outperform	$7.85B	17.04	15.95%	0.01%	1.08%	8.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSK	58 Neutral	$4.11B	15.13	4.24%	18.22%	-13.67%	-48.49%
STEP	45 Neutral	$7.52B	-7.94	-750.11%	2.26%	92.02%	-1386.34%

Hamilton Lane Corporate Events

Hamilton Lane Amends Loan Agreement with JPMorgan

On October 1, 2025, Hamilton Lane Advisors, L.L.C., a subsidiary of Hamilton Lane Incorporated, amended its existing Multi-Draw Term Loan and Security Agreement with JPMorgan Chase Bank. The amendment reduces the aggregate principal amount of term loans from $75 million to $50 million and adjusts the interest rate terms, potentially impacting the company’s financial flexibility and cost of borrowing.