Hamilton Lane (HLNE) AI Stock Analysis

• Market Cap: $7.44B
• Dividend Yield: 1.51%
• Average Volume (3M): 662.84K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.20
• Revenue Growth: 41.16%
• EPS Growth: 64.13%
• Country: US
• Employees: 700
• Sector: Financial
• Sector Strength: 80
• Industry: Asset Management
• EPS (TTM): 1.21
• Shares Outstanding: 41,374,706
• 10 Day Avg. Volume: 722,954
• 30 Day Avg. Volume: 662,844
• PEG Ratio: 27.55
• Price to Book (P/B): 7.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.18
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 10.08
• Enterprise Value/Ebitda: 4.38
• 1Y Price Target: $155.40
• Price Target Upside: 9.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: ―

Hamilton Lane is a strong performer with excellent financial health and cash flow management. While the stock shows some technical strength, the high valuation and challenges highlighted in the earnings call, such as rising expenses, need consideration. The overall score reflects a well-positioned company with potential growth but some caution due to valuation and market challenges.

Positive Factors

Earnings

The adjusted EPS of $1.21 was ahead of Visible Alpha Consensus Data and Goldman Sachs estimates.

Fee Performance

Fee-related performance fees were higher than anticipated, contributing positively to the quarter's results.

Negative Factors

Fee-related Earnings

The firm's fee-related earnings were significantly below expectations when normalized for changes.

Incentive Fees

The EPS miss was a function of both - lower FRE and lower than expected Incentive fees.

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 primarily makes money through management and advisory fees. The company earns management fees based on a percentage of the assets under management (AUM) for its investment management services. These fees are typically recurring and provide a stable revenue stream. In addition to management fees, Hamilton Lane generates revenue from performance fees, which are contingent upon achieving certain investment return benchmarks. The firm also earns advisory and reporting fees by providing customized advisory services and reporting solutions to its clients. Strategic partnerships and collaborations with other financial institutions can enhance revenue potential and expand service offerings, though specific partnerships are not detailed.

Hamilton Lane Financial Statement Overview

Summary

Hamilton Lane demonstrates strong financial performance with impressive margins and growth rates. The company shows robust cash flow management, though increasing debt trends need monitoring. Overall, the company maintains a stable financial position with effective operational efficiency.

Income Statement

Hamilton Lane demonstrates strong financial performance with a high gross profit margin of 67.1% and a net profit margin of 31.1% in TTM. The company recorded a remarkable revenue growth rate of 24.8% from the previous year, indicating positive growth trajectory. EBIT and EBITDA margins are healthy at 49.3% and 51.6% respectively, showcasing efficient operational management. However, the net income decreased from 2022 to TTM, which could be a concern for sustained profitability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.57, suggesting moderate leverage. Return on Equity (ROE) is impressive at 33.2% in TTM, reflecting effective use of shareholder equity. The equity ratio stands at 40.8%, indicating a stable financial position. While the leverage is managed well, the increase in total debt over the years could present future risks if not controlled.

Cash Flow

Hamilton Lane exhibits robust cash flow management with a strong operating cash flow to net income ratio of 1.32, and free cash flow to net income ratio of 1.31 in TTM. The free cash flow growth rate is a notable 156.5%, demonstrating excellent cash conversion and financial health. These metrics highlight the company's ability to generate cash efficiently, providing a buffer for investments and operations.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	712.96M	553.84M	528.75M	367.92M	341.63M
Gross Profit	438.47M	352.35M	340.29M	246.16M	205.32M
EBITDA	317.54M	301.02M	247.48M	323.81M	199.38M
Net Income	217.42M	140.86M	187.19M	247.25M	168.78M
Balance Sheet
Total Assets	1.69B	1.27B	1.14B	1.29B	1.14B
Cash, Cash Equivalents and Short-Term Investments	229.16M	114.63M	111.75M	72.17M	87.34M
Total Debt	0.00	275.19M	292.35M	253.57M	238.46M
Total Liabilities	766.46M	595.24M	566.35M	557.46M	546.32M
Stockholders Equity	717.28M	525.15M	415.44M	346.88M	238.13M
Cash Flow
Free Cash Flow	311.36M	109.78M	221.84M	161.00M	168.52M
Operating Cash Flow	323.52M	120.85M	226.59M	169.52M	188.16M
Investing Cash Flow	-139.81M	-122.18M	177.91M	-70.49M	-421.78M
Financing Cash Flow	-19.62M	4.40M	-364.15M	-113.22M	270.66M

Hamilton Lane Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLNE, the sentiment is Negative. The current price of 142.52 is below the 20-day moving average (MA) of 146.37, below the 50-day MA of 152.42, and below the 200-day MA of 159.58, indicating a bearish trend. The MACD of -4.84 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 47.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLNE.

Hamilton Lane Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLNE	78 Outperform	$7.44B	25.68	35.00%	1.51%	41.16%	64.13%
CG	73 Outperform	$17.74B	16.60	20.38%	2.85%	81.86%	―
TRIN	71 Outperform	$919.98M	6.56	17.56%	14.34%	46.14%	34.91%
Sector *	67 Neutral	$16.47B	11.30	9.71%	3.94%	11.97%	-10.51%
STEP	63 Neutral	$6.39B	103.13	-71.28%	4.66%	118.79%	-285.61%
GCMG	62 Neutral	$2.24B	84.62	-12.68%	3.83%	17.33%	1.83%
BRDG	57 Neutral	$2.58B	72.24	-22.41%	4.46%	-1.09%	-120.06%