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Hennessy Advisors, Inc. (HNNA)
NASDAQ:HNNA
US Market

Hennessy Advisors (HNNA) AI Stock Analysis

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Hennessy Advisors

(NASDAQ:HNNA)

Rating:80Outperform
Price Target:
$12.50
▲(12.61%Upside)
Hennessy Advisors' overall score is driven by strong financial performance and valuation metrics. The company's robust earnings growth and strategic initiatives through corporate events further bolster the score. Technical analysis suggests stability, with potential for gains, rounding out a positive outlook for the stock.

Hennessy Advisors (HNNA) vs. SPDR S&P 500 ETF (SPY)

Hennessy Advisors Business Overview & Revenue Model

Company DescriptionHennessy 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 MoneyHennessy 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 displays strong financial health with robust profitability, significant revenue growth, and excellent cash flow generation. The company's margins are high, and its debt management is conservative, indicating efficient financial operations.
Income Statement
82
Very Positive
Hennessy Advisors shows strong profitability with improving margins. The TTM Gross Profit Margin stands at 63.24%, and the Net Profit Margin is 27.49%, indicating efficient cost management. Revenue growth is robust, with a 19.89% year-over-year increase, showing solid top-line expansion. EBIT and EBITDA margins at 36.02% and 40.03% respectively further reinforce operational efficiency.
Balance Sheet
75
Positive
The company maintains a healthy balance sheet with a Debt-to-Equity Ratio of 0.43, indicating conservative leverage. A Return on Equity of 10.27% points to effective use of equity capital, though slightly lower than asset management peers. The Equity Ratio of 61.21% suggests strong equity financing but warrants monitoring for potential asset growth.
Cash Flow
78
Positive
Cash flows are robust, with a Free Cash Flow Growth Rate of 40.25% year-over-year, highlighting excellent cash generation. Operating Cash Flow to Net Income Ratio is 1.33, indicating strong conversion of earnings to cash. The Free Cash Flow to Net Income Ratio at 1.29 reflects healthy cash surplus after capital expenditures.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
35.55M29.65M24.02M29.67M32.76M33.39M
Gross Profit
22.48M20.58M12.04M21.34M23.68M24.57M
EBIT
12.80M8.87M6.33M9.84M10.88M11.32M
EBITDA
14.23M12.22M6.56M10.05M11.11M11.56M
Net Income Common Stockholders
9.77M7.10M4.77M6.19M7.90M7.84M
Balance SheetCash, Cash Equivalents and Short-Term Investments
67.57M63.93M60.49M58.50M15.85M9.96M
Total Assets
155.53M152.10M145.72M143.65M101.91M94.79M
Total Debt
40.50M40.50M39.44M39.52M1.00M330.00K
Net Debt
-27.06M-23.42M-21.03M-18.97M-14.83M-9.63M
Total Liabilities
60.33M60.79M57.97M57.35M18.64M16.61M
Stockholders Equity
95.20M91.31M87.75M86.30M83.26M78.18M
Cash FlowFree Cash Flow
12.57M8.96M6.92M8.45M10.14M10.45M
Operating Cash Flow
12.97M9.28M7.13M8.66M10.39M10.62M
Investing Cash Flow
-434.00K-1.30M-819.00K-231.00K-249.00K-882.00K
Financing Cash Flow
-4.56M-4.53M-4.33M34.22M-4.26M-24.47M

Hennessy Advisors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.10
Price Trends
50DMA
10.37
Positive
100DMA
10.79
Positive
200DMA
10.62
Positive
Market Momentum
MACD
0.20
Negative
RSI
57.39
Neutral
STOCH
60.76
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 11.1 is above the 20-day moving average (MA) of 10.80, above the 50-day MA of 10.37, and above the 200-day MA of 10.62, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 60.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNNA.

Hennessy Advisors Risk Analysis

Hennessy Advisors disclosed 35 risk factors in its most recent earnings report. Hennessy Advisors reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Certain provisions in our employment agreements and bonus agreements with key personnel could delay or discourage an acquisition of the Company. Q3, 2024

Hennessy Advisors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$86.42M8.8910.62%4.95%41.94%85.49%
71
Outperform
$1.36B26.843.27%16.55%-28.04%-69.52%
70
Outperform
$54.11M4.7313.04%7.73%134.64%35.26%
65
Neutral
$12.93B9.817.84%78.03%12.20%-7.74%
63
Neutral
$122.05M-1184.17%
58
Neutral
$481.21M15.47-1.88%15.75%2.30%-63.97%
45
Neutral
$172.87M-9.96%90.08%-893.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HNNA
Hennessy Advisors
11.10
4.35
64.44%
SSSS
SuRo Capital
7.47
3.47
86.75%
RAND
Rand Capital
15.50
0.64
4.31%
GSBD
Goldman Sachs BDC
11.56
-1.68
-12.69%
CION
CION Investment Corp
9.08
-1.49
-14.10%
ESGL
ESGL Holdings
2.98
1.88
170.91%

Hennessy Advisors Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures
Hennessy Advisors Reports 65% EPS Increase in Q2 2025
Positive
May 7, 2025

On May 7, 2025, Hennessy Advisors, Inc. announced a 65% increase in quarterly earnings per share and declared a cash dividend of $0.1375 per share, payable on June 4, 2025. The company reported significant financial growth with a 34% increase in total revenue and a 68% rise in net income for the second fiscal quarter ended March 31, 2025, compared to the same period in 2024. Despite market volatility due to new tariffs and economic uncertainties, Hennessy Advisors remains confident in its long-term investment strategy and has signed an agreement with STF Management, LP to expand its ETF offerings, reflecting its commitment to growth and shareholder value.

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.