Hennessy Advisors (HNNA) AI Stock Analysis

• Market Cap: $85.54M
• Dividend Yield: 5%
• Average Volume (3M): 19.71K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.39
• Revenue Growth: 38.27%
• EPS Growth: 77.40%
• Country: US
• Employees: 17
• Sector: Financial
• Sector Strength: 83
• Industry: Asset Management
• EPS (TTM): 1.12
• Shares Outstanding: 7,783,737
• 10 Day Avg. Volume: 27,218
• 30 Day Avg. Volume: 19,714
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.44
• Price to Cash Flow (P/CF): 9.10
• P/FCF Ratio: 7.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hennessy Advisors scores well due to its strong financial performance and attractive valuation, complemented by significant positive corporate events. The technical analysis suggests potential for upward momentum, though some caution is warranted given historical revenue volatility and increased debt levels. The overall outlook is positive, particularly for value and income-focused investors.

Hennessy Advisors Business Overview & Revenue Model

Company Description

Hennessy Advisors, Inc. is an investment management firm headquartered in Novato, California. The company operates within the financial services sector, primarily focusing on managing and offering a range of mutual fund products. Hennessy Advisors provides investment advisory services to its clients, managing a diverse portfolio of equity and fixed-income mutual funds that cater to various investment strategies and risk tolerances.

How the Company Makes Money

Hennessy Advisors makes money through management fees charged for its investment advisory services. These fees are based on a percentage of the assets under management (AUM) within the various mutual funds it oversees. The company also earns revenue through performance fees, contingent on the funds meeting specific performance benchmarks. Additionally, Hennessy Advisors may generate income from distribution fees associated with the sale of mutual fund shares. Key partnerships with financial intermediaries and distributors also support its revenue streams by facilitating broader access to potential investors.

Hennessy Advisors Financial Statement Overview

Summary

Hennessy Advisors exhibits strong financial health with solid profitability, stable balance sheet metrics, and effective cash flow management. The company shows a positive growth trend and maintains healthy margins, although historical revenue fluctuations and debt increase warrant cautious monitoring.

Income Statement

Hennessy Advisors shows strong profitability with a TTM gross profit margin of 64.8% and a net profit margin of 26.3%. The company witnessed a robust revenue growth rate of 35.9% compared to the previous year, indicating a positive trajectory. EBIT and EBITDA margins are also solid at 33.9% and 38.4%, respectively, reflecting efficient cost management. However, the recent revenue is slightly lower than in 2020, indicating some historical volatility.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.43, showing moderate leverage. A high equity ratio of 60.9% indicates strong asset financing through equity. ROE is impressive at 9.3%, reflecting good shareholder returns. However, the increase in total debt over the years poses a potential risk if not managed carefully.

Cash Flow

Hennessy Advisors demonstrates strong cash flow management with a free cash flow growth rate of 10.7% in the TTM period. The operating cash flow to net income ratio of 1.27 and free cash flow to net income ratio of 1.14 indicate healthy cash generation relative to earnings. Consistent free cash flow growth suggests robust operational efficiency.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
33.21M	29.65M	24.02M	29.67M	32.76M	33.39M
	Gross Profit
21.52M	20.58M	12.04M	21.34M	23.68M	24.57M
	EBIT
11.27M	8.87M	6.33M	9.84M	10.88M	11.32M
	EBITDA
12.76M	12.22M	6.56M	10.05M	11.11M	11.56M
	Net Income Common Stockholders
8.73M	7.10M	4.77M	6.19M	7.90M	7.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.97M	63.93M	60.49M	58.50M	15.85M	9.96M
	Total Assets
31.14M	152.10M	145.72M	143.65M	101.91M	94.79M
	Total Debt
3.07M	40.50M	39.44M	39.52M	1.00M	330.00K
	Net Debt
-4.24M	-23.42M	-21.03M	-18.97M	-14.83M	-9.63M
	Total Liabilities
6.82M	60.79M	57.97M	57.35M	18.64M	16.61M
	Stockholders Equity
24.31M	91.31M	87.75M	86.30M	83.26M	78.18M
Cash Flow		Free Cash Flow
9.92M	8.96M	6.92M	8.45M	10.14M	10.45M
	Operating Cash Flow
11.10M	9.28M	7.13M	8.66M	10.39M	10.62M
	Investing Cash Flow
-1.18M	-1.30M	-819.00K	-231.00K	-249.00K	-882.00K
	Financing Cash Flow
-4.54M	-4.53M	-4.33M	34.22M	-4.26M	-24.47M

Hennessy Advisors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNNA, the sentiment is Positive. The current price of 10.99 is above the 20-day moving average (MA) of 9.88, above the 50-day MA of 10.55, and above the 200-day MA of 10.32, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNNA.

Hennessy Advisors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNNA	72 Outperform	$85.54M	9.23	9.62%	5.00%	38.27%	77.40%
GSBD	71 Outperform	$1.28B	19.63	3.96%	15.29%	-28.04%	-69.52%
RAND	70 Outperform	$56.52M	5.68	14.00%	26.09%	134.64%	35.26%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%
CION	58 Neutral	$534.51M	15.77	3.99%	14.29%	2.30%	-63.97%
ESGL	46 Neutral	$74.73M	―	-1184.17%	―	―	―
SSSS	45 Neutral	$107.87M	―	-21.13%	―	90.08%	-893.47%

Hennessy Advisors Corporate Events

Hennessy Advisors Announces Quarterly Dividend Increase

On February 13, 2025, Hennessy Advisors, Inc. announced a quarterly cash dividend of $0.1375 per share, payable on March 6, 2025, to shareholders recorded by February 24, 2025. The firm reported a significant increase in its first fiscal quarter results, with a 125% rise in earnings per share, driven by a 58% revenue increase and a 46% growth in total assets under management. The positive performance is attributed to strong market conditions and effective strategic operations, highlighting their commitment to delivering substantial returns to shareholders.