Want to see AU:HM1 full AI Analyst Report?
Top Page
Hearts and Minds Investments Ltd
(Sydney:HM1)
Select Model
Select Model
Rating:63Neutral
Price Target:
AU$3.00
â–¼(-5.36% Downside)
Action:Reiterated
Date:08/30/26
The score is driven primarily by solid financial strength (debt-free balance sheet and strong recent profitability), tempered by a significant concern around inconsistent cash generation (negative operating/free cash flow in 2024–2026). Technically, the stock shows constructive momentum with price above key moving averages, while valuation is a notable constraint due to the high P/E despite a healthy dividend yield.
Positive Factors
Debt-free balance sheet
The company’s essentially debt-free balance sheet provides substantial financial flexibility and limits interest or refinancing pressure. A large equity base relative to assets also gives HM1 capacity to maintain its investment strategy through weaker periods without relying heavily on borrowed capital.
Negative Factors
Inconsistent cash conversion
Negative operating and free cash flow across the latest three years weakens confidence that reported profits are consistently converting into cash. Persistent divergence between earnings and cash generation can increase funding variability and make it harder to assess the durability of underlying financial performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
The company’s essentially debt-free balance sheet provides substantial financial flexibility and limits interest or refinancing pressure. A large equity base relative to assets also gives HM1 capacity to maintain its investment strategy through weaker periods without relying heavily on borrowed capital.
Read all positive factors
Hearts and Minds Investments Ltd (HM1) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$638.86M
Dividend Yield6.99%
Average Volume (3M)201.10K
Price to Earnings (P/E)14.0
Beta (1Y)1.08
Revenue Growth24.55%
EPS Growth-56.59%
CountryAU
Employees4
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.20
Shares Outstanding228,982,160
10 Day Avg. Volume190,842
30 Day Avg. Volume201,097
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)0.87
Price to Sales (P/S)7.89
P/FCF Ratio-51.43
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 (HM1.AX) operates as an Australian listed investment company with a dual objective: to assemble a focused investment portfolio comprising the most compelling ideas from various fund managers, and simultaneously...
Hearts and Minds Investments Ltd Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
86
Very Positive
Cash Flow
38
Negative
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 85.66M | 165.14M | 84.39M | -64.09M | -6.62M |
| Gross Profit | 85.66M | 165.14M | 84.39M | -64.09M | -6.67M |
| EBITDA | 65.63M | 152.08M | 82.79M | 55.75M | -1.04M |
| Net Income | 46.37M | 106.82M | 50.93M | 32.73M | -94.84M |
Balance Sheet | |||||
| Total Assets | 848.00M | 857.95M | 730.51M | 681.35M | 647.09M |
| Cash, Cash Equivalents and Short-Term Investments | 817.71M | 36.01M | 619.48M | 539.20M | 309.58M |
| Total Debt | 0.00 | 0.00 | 6.99M | 0.00 | 0.00 |
| Total Liabilities | 74.11M | 71.25M | 33.10M | 5.83M | 5.96M |
| Stockholders Equity | 773.89M | 786.70M | 697.41M | 675.52M | 641.13M |
Cash Flow | |||||
| Free Cash Flow | -13.14M | -2.55M | -3.30M | 7.60M | -94.84M |
| Operating Cash Flow | -13.14M | -2.55M | -3.30M | 7.60M | -94.84M |
| Investing Cash Flow | 57.27M | 4.32M | 42.57M | -43.86M | 73.57M |
| Financing Cash Flow | -42.36M | -35.49M | -31.57M | -28.56M | -25.28M |
Hearts and Minds Investments Ltd Technical Analysis
Negative
3.17
Price Trends
2.88
Negative
2.86
Negative
2.81
Negative
Market Momentum
-0.03
Positive
44.44
Neutral
55.95
Neutral
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 2.82, above the 50-day MA of 2.88, and above the 200-day MA of 2.81, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | AU$484.92M | 18.54 | 53.29% | 4.23% | 8.51% | 27.42% | |
74 Outperform | AU$558.08M | 20.73 | 4.84% | 5.31% | -31.59% | -28.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | AU$573.72M | 22.15 | 6.50% | 0.88% | -7.09% | -18.20% | |
63 Neutral | AU$638.86M | 13.98 | 6.01% | 6.99% | 24.55% | -56.59% | |
60 Neutral | AU$421.86M | 34.65 | 2.56% | 7.28% | 86.21% | -44.46% | |
58 Neutral | AU$530.49M | 40.86 | 2.07% | 4.41% | 45.10% | 44.28% |
* Financial Sector Average
AU:HM1
Hearts and Minds Investments Ltd
2.79
-0.32
-10.23%
AU:PIC
Perpetual Equity Investment Co. Ltd.
1.10
-0.06
-4.87%
AU:AEF
Australian Ethical Investment Ltd
4.26
-2.48
-36.79%
AU:EQT
EQT Holdings Ltd.
21.38
-2.72
-11.28%
AU:FGX
Future Generation Australia Limited Stapled Security
1.36
0.05
3.99%
AU:MIR
Mirrabooka Investments Ltd
2.37
-0.77
-24.43%
Hearts and Minds Investments Ltd Corporate Events
Hearts and Minds Flags HM2 Launch as Portfolio Dips in September
Oct 13, 2026
Hearts and Minds Investments reported that its portfolio fell 2% in September, though since inception it has achieved annualised pre-tax returns of 9.9% and an annualised fully franked dividend yield of 6.8%. Key contributors in the month included...
Hearts and Minds Holds NTA Steady Amid Market Volatility
Oct 11, 2026
Hearts and Minds Investments Limited has reported that its estimated net tangible asset backing per share remained unchanged as at 9 October 2026 compared with the prior week. The company confirmed pre-tax NTA at $3.44 per share, post current tax ...
Hearts and Minds clarifies DRP pricing for 2026 full-year dividend
Oct 8, 2026
Hearts and Minds Investments Ltd has updated its previously announced full-year dividend for the 12 months to 30 June 2026, relating to its ordinary fully paid shares listed on the ASX under the code HM1. The update, dated 8 October 2026, specific...
Hearts & Minds to launch new income fund and cut fees via group restructure
Oct 6, 2026
Hearts Minds Investments is restructuring into a broader Hearts Minds Group, creating a dedicated management company to service its flagship HM1 fund and future vehicles, while targeting a lower management expense ratio for shareholders. By scal...
Hearts and Minds Investments Posts Stable NTA Ahead of Dividend
Oct 4, 2026
Hearts and Minds Investments Limited, an Australian listed investment company based in Sydney, offers shareholders exposure to a concentrated portfolio of listed securities and a single unlisted holding, software company Rokt Pte Ltd. The firm aim...
Hearts and Minds Updates NTA and Holds Rokt Valuation Amid Volatile Markets
Sep 27, 2026
Hearts and Minds Investments Limited reported that its net tangible asset backing per share rose over the week to 25 September 2026, with pre-tax NTA increasing to $3.43, post-current-tax NTA to $3.38, and post-tax NTA to $3.19. The figures are st...
Hearts and Minds posts modest NTA dip as dividend and volatility shape portfolio values
Sep 20, 2026
Hearts and Minds Investments Limited, an ASX-listed investment company, has updated the market on its Net Tangible Asset (NTA) backing per share as at 18 September 2026. The firm, which offers exposure to a mix of listed securities and a single un...
Hearts and Minds Investments Posts Lower NTA Amid Market Volatility
Sep 13, 2026
Hearts and Minds Investments Limited reported a decline in its net tangible asset backing per share as at 11 September 2026, with pre-tax NTA falling to $3.41 from $3.60 a week earlier and post-tax NTA decreasing to $3.18 from $3.34. The NTA figur...
Hearts and Minds lifts dividend as portfolio performance holds and conference lineup set
Sep 11, 2026
Hearts and Minds Investments reported that its portfolio rose 0.6% in August, delivering an annualised pre-tax return of 10.3% since its 2018 inception, with a fully franked annualised dividend yield of 6.5% and a cash weighting of 4%. The company...
Hearts and Minds Updates NTA and Portfolio Valuations Amid Market Volatility
Sep 6, 2026
Hearts and Minds Investments Limited reported that its estimated net tangible asset backing per share as at 4 September 2026 was $3.60 pre-tax, $3.54 post current tax and $3.34 post full tax, representing a slight decline from the previous week am...
Hearts and Minds Posts Higher NTA, Holds Rokt Valuation Amid Volatile Tech Markets
Aug 31, 2026
Hearts and Minds Investments Limited reported updated net tangible asset backing per share as at 28 August 2026, showing a modest increase across pre-tax, post-current-tax, and post-tax measures compared with the prior week. The pre-tax NTA rose t...
Hearts & Minds cuts effective MER while preserving philanthropic model
Aug 26, 2026
Hearts Minds Investments Ltd has announced a change to its cost structure that will materially lower the fund’s effective management expense ratio, strengthening its appeal to investors. Effective 1 July 2026, the company’s annual cha...
Hearts and Minds lifts fully franked dividend as it boosts risk controls and medical research funding
Aug 26, 2026
Hearts and Minds Investments Limited has lifted its final fully franked dividend to 10 cents per share, supporting an annualised yield of 6.8%, even as post-tax net tangible assets eased slightly to $3.38 per share and the shares trade at a 12.7% ...
Hearts and Minds Investments Declares A$0.10 Dividend for FY 2026
Aug 26, 2026
Hearts and Minds Investments Ltd has declared a cash distribution of A$0.10 per ordinary fully paid share for the twelve‑month period ended 30 June 2026. The distribution timetable sets the ex‑dividend date on 9 September 2026, the rec...
Hearts and Minds Investments Cuts Profit but Raises Dividend as Philanthropic Funding Grows
Aug 26, 2026
Hearts and Minds Investments Limited reported a sharp decline in performance for the year to 30 June 2026, with total net investment income down 52% and profit after tax falling 57%, as portfolio returns moderated to 5.2% from 25.5% a year earlier...
Hearts and Minds Reports Softer NTA While Holding Rokt Valuation Steady
Aug 23, 2026
Hearts and Minds Investments Limited is an Australian listed investment company that provides shareholders with exposure to a portfolio of equities, including both listed and a single unlisted holding. The company focuses on managing a diversified...
Hearts and Minds Investments Posts Slight NTA Dip Amid Software Volatility
Aug 16, 2026
Hearts and Minds Investments Limited reported that its estimated net tangible asset backing per share as at 14 August 2026 stood at $3.63 on a pre-tax basis and $3.36 on a post-tax basis, reflecting a slight decline from the prior week. These figu...
Hearts and Minds portfolio slips in July but maintains yield and boosts medical research funding
Aug 13, 2026
Hearts and Minds Investments reported a pre-tax net tangible asset value of $3.59 per share and a post-tax NTA of $3.33 as at 31 July 2026, against a share price of $2.88, while its annualised pre-tax investment return since its 2018 inception sta...
Hearts and Minds Investments Holds NTA Steady Amid Market Volatility
Jul 26, 2026
Hearts and Minds Investments Limited has reported its estimated net tangible asset backing per share as at 24 July 2026, with pre-tax NTA at $3.53, post current tax NTA at $3.47, and post-tax NTA at $3.29, broadly unchanged from the prior week. Th...
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.