Heartland Group Holdings Ltd. (HGH) AI Stock Analysis

Heartland Group Holdings Ltd.

(NZX:HGH)

Select Model

Rating:72Outperform

Price Target:NZD 1.50▲(19.05% Upside)

Action:initiatedcoverage

Date:10/05/26

Strong financial performance from improved balance sheet and revenue growth is the primary driver, supported by attractive valuation with high yield; technicals provide moderate positive momentum.

Positive Factors

Strong FY2026 earnings recovery and lending growthThe sharp FY2026 profit rebound, supported by growth across reverse mortgage and rural lending, indicates improving earnings momentum and customer demand. If portfolio expansion and stronger asset quality persist, Heartland can build a broader recurring earnings base over the next several quarters.

Negative Factors

Persistently negative and volatile cash conversionNegative operating and free cash flow in most reported years, including 2026, shows that accounting earnings are not consistently converting into cash. This volatility can complicate liquidity planning, restrict internally funded growth, and leave the bank more reliant on funding markets or balance-sheet actions.

Heartland Group Holdings Ltd. (HGH) vs. SPDR S&P 500 ETF (SPY)

Market Cap: NZD 1.19B
Dividend Yield: 6.54%
Average Volume (3M): 504.89K
Price to Earnings (P/E): 12.7
Beta (1Y): 1.04
Revenue Growth: -4.94%
EPS Growth: 139.47%
Country: NZ
Employees: 612
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Heartland Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Heartland Group Holdings Limited serves as the parent entity for Heartland Bank Limited, delivering a diverse range of financial products and services across both New Zealand and Australia. The company offers various deposit accounts, including savin...

How the Company Makes Money

HGH primarily makes money through net interest income generated by financial intermediation: it funds itself largely via customer deposits and other wholesale funding, then lends those funds out across its lending portfolios at higher interest rates....

Heartland Group Holdings Ltd. Financial Statement Overview

Summary

Strong balance sheet with debt-to-equity reduced to 0.60 and 38.5% revenue growth, offset by negative operating cash flow and margin compression to 13.8%.

Income Statement

74Positive

Balance Sheet

86Very Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	687.78M	674.41M	250.75M	243.93M	262.07M	253.79M
Gross Profit	327.51M	314.14M	250.75M	243.93M	258.89M	250.53M
EBITDA	140.31M	137.65M	80.40M	-1.22M	149.35M	155.69M
Net Income	93.23M	93.23M	38.81M	74.55M	95.87M	95.13M
Balance Sheet
Total Assets	9.38B	9.38B	8.65B	9.29B	7.74B	7.09B
Cash, Cash Equivalents and Short-Term Investments	385.27M	385.27M	1.14B	1.01B	294.63M	290.56M
Total Debt	804.79M	804.79M	825.45M	2.06B	2.51B	2.59B
Total Liabilities	8.04B	8.04B	7.43B	8.05B	6.71B	6.28B
Stockholders Equity	1.34B	1.34B	1.22B	1.24B	1.03B	808.71M
Cash Flow
Free Cash Flow	-138.66M	-138.66M	73.80M	-115.19M	-508.92M	-679.61M
Operating Cash Flow	-135.15M	-135.15M	77.51M	-87.10M	-484.25M	-669.80M
Investing Cash Flow	-19.80M	-19.80M	304.93M	-119.05M	-78.23M	-94.20M
Financing Cash Flow	173.52M	173.52M	-658.70M	756.61M	564.63M	892.42M

Heartland Group Holdings Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1.26

Price Trends

50DMA1.25Positive

100DMA1.22Positive

200DMA1.18Positive

Market Momentum

MACD0.00Negative

RSI54.33Neutral

STOCH52.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:HGH, the sentiment is Positive. The current price of 1.26 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.25, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.00 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NZ:HGH.

Heartland Group Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

NZ:HGH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NZ:TWR	75Outperform	NZD 721.16M	12.66	16.98%	12.04%	0.08%	-32.20%
NZ:HGH	72Outperform	NZD 1.19B	12.74	7.10%	6.54%	-4.94%	139.47%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NZ:GEN	53Neutral	NZD 24.38M	8.92	―	4.33%	18.24%	-3.88%

* Financial Sector Average

Performance Comparison

NZ:HGH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NZ:HGH	Heartland Group Holdings Ltd.	1.26	0.24	24.02%
NZ:TWR	Tower Limited	2.10	0.47	28.52%
NZ:GEN	General Capital Ltd.	0.27	0.01	4.33%

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.

Date of analysis: Oct 05, 2026

Heartland Group Holdings Ltd. AI Stock Analysis