Hamilton Lane Inc
HLNE
Investment Advice
Mkt Cap
$3.465BPE
30.46Debt
$197.3MCash
$234.8MEV
$3.427BFCF
$197.8MP/E Ratio
30.46Debt
$197.3MCash
$234.8MEV
$3.427BFCF
$197.8MHamilton 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.
Sector
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DCF
Discounted Cash Flow Valuation of Hamilton Lane Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $197.8M | $231.8M | $268.5M | $307.3M | $347.7M | $388.6M | $429.1M | $468M | $504.1M | $536.1M | $562.9M | $5.629B |
| DCF | $201.5M | $203M | $202.1M | $198.8M | $193.2M | $185.5M | $175.9M | $164.8M | $152.4M | $139.1M | $1.391B | |
| Value | $3.208B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 75%
Earnings Stability 45%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Net Margin | - | 0.34% | 7.1% | 13% | 22% | 27% | 40% | 21% | 23% |
| ROA | - | 31% | 48% | 36% | 30% | 17% | 24% | 21% | 17% |
| ROE | - | 0.71% | 13% | 20% | 26% | 30% | 32% | 19% | 15% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +21.71%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +4.34%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +29.28%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -5.12%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +23.08%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +2.03%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 03-2016 | 03-2017 | 03-2018 | 03-2019 | 03-2020 | 03-2021 | 03-2022 | 03-2023 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 1.07 | 0.89 | 0.67 | 0.66 | 0.96 | 1.06 | 0.96 | 1.00 | |
| Debt Equity | - | 0.99 | 0.62 | 0.42 | 0.32 | 0.52 | 0.37 | 0.37 | 0.25 | |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 100% | 100% | 100% | 100% | |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.00.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.05.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 03-2016 | 03-2018 | 03-2020 | 03-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | - | 17% | 24% | 44% | 2% |
| Net Income | - | 44% | 22% | -25% | -400% |
| Stockholders Equity | - | 33% | 34% | 24% | -3% |
| FCF | 11% | 19% | 25% | 38% | 6.5% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +16.72%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.97%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +44.47%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -398.09%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +33.37%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -2.98%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +18.63%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +6.47%.