Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 25 May 2026
HLNE· Financial Services
Hamilton Lane
Hamilton Lane's strong ROIC of 19.6% and consistent profitability are positives, but its high valuation and share count growth raise concerns.
Buffett fit
Partial fit
Owner
79
Durability
86
Management
83
Price
34
Score updated 26 Sept 2026 · analysis from 25 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Hamilton Lane outright, I would be pleased with its 19.6% average , which is well above the sector's top-quintile cutoff of 9.0%.
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Hamilton Lane's durability is supported by its consistent profitability over the past five years, with no annual losses.
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Management's appears disciplined, with a yield of 2.22% and a market cap increase of 5.66 times retained earnings.
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The current yield of 5.84% is below my target of 8-10%, indicating that the stock may be overvalued.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 19.6% (5y avg) is well above the sector's top-quintile cutoff of 9.0%.
- 2Consistent profitability with positive net income in all of the last 5 years.
- 3 of $288.66 million indicates healthy cash generation.
- 4Interest coverage ratio of 21.5 suggests strong ability to cover interest expenses.
Concerns
5- 1 of 69.2% is below the sector's top-quintile cutoff of 80.2%.
- 2 of 42.8% is below the sector's top-quintile cutoff of 58.2%.
- 3Share count CAGR of 4.9% indicates potential dilution of shareholder value.
- 4 yield of 5.84% is below the target range of 8-10%.
Price history
$85.31-18.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Hamilton Lane specializes in asset management, focusing on direct and fund of fund investments. With a TTM revenue of $712.96 million and a net income of $217.42 million, the firm has a diverse investment strategy across various sectors. The firm invests between $1 million and $100 million, preferring majority stakes in companies. The unit economics appear solid, with a net margin of 30.6%.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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