At under 1,000p, are Hargreaves Lansdown shares a screaming buy?

I think Hargreaves Lansdowne (LSE: HL) shares are looking attractive right now.

At FTSE 100 the company operates as an investment platform provider for private investors. And use it to generate rapid returns in income every year.

The success of the business is reflected in the stock price. It rose from below 200p in the noughties to above 2,000p by 2018.

Faltering growth in earnings

Hargreaves Lansdown describes itself as a genuine disruptor in the sector. And through these efforts, they created a direct-to-consumer (D2C) market.

It is now the UK’s largest provider with around £120bn of assets under administration and over 1.7 million clients. But unlike when the business started its mission in 1981, today there is a lot of competition.

And one result of the situation is that the growth rate is dead. Peak earnings occur in 2021 before diving last year. And City analysts expect earnings to remain below the 2021 record in the trading year to June 2024. However, a significant recovery is on the cards from lower earnings in 2022.

But competition is not the only problem. Last year’s bear market for stocks has taken its toll. And because the enthusiasm of the client to buy stocks and funds tends to decrease in these conditions.

Meanwhile, stock prices have become victims. Over the past year it has fallen from above 1,700p to its current level of around 940p. And the current valuation better reflects the business as an ex-growth proposition.

For example, the price-to-earnings ratio is expected to run above 16 for the trading year until June 2024. And the dividend yield is expected to be more than 4.7%.

A strong dividend story

Such a high dividend yield has not happened before. As far as I can remember, the company has always had an upward trend. But not now.

However, despite volatile recent earnings, multi-year dividend performance has been missed. The company has raised its dividend a little every year since at least 2017, and through the pandemic. And analysts expect more to come.

Meanwhile, a strong record of consistent cash flow supports the dividend. And the business has defensive qualities that make it a long-lasting dividend investment. But looking at stocks that way requires a shift in mindset from seeing them as growth companies.

However, the company has not given up on its growth ambitions. Last year said the British wealth management industry “once again at a key inflection point”. And the size of the market opportunity “It has never been this significant”. So, naturally, the directors have made plans to gain more market share in the coming year.

I don’t have money to invest right now. And there can be no assurance that Hargreaves Lansdown will be successful in maintaining and growing its earnings in the future. After all, competition can still hinder a company’s plans to grow.

However, I think the stock could make a worthwhile addition to a diversified, dividend-focused long-term portfolio. In that sense, it is attractive to me. Although I wouldn’t describe it as a screaming buy for me today.