Hennessy Advisors (HNNA) AI Stock Analysis

• Market Cap: $72.61M
• Dividend Yield: 5.98%
• Average Volume (3M): 10.73K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.36
• Revenue Growth: 19.87%
• EPS Growth: 38.04%
• Country: US
• Employees: 17
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.31
• Shares Outstanding: 7,891,917
• 10 Day Avg. Volume: 6,059
• 30 Day Avg. Volume: 10,735
• PEG Ratio: 0.21
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.29
• P/FCF Ratio: 6.10
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 4.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $11.00 ▲(19.57% Upside)

Hennessy Advisors' strong financial performance and attractive valuation are significant strengths, with a low P/E ratio and high dividend yield enhancing its appeal. However, technical indicators suggest neutral momentum, and the declining revenue trend poses a risk to future growth.

Positive Factors

Cash Flow Management

Efficient cash flow management ensures financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability

High gross profit margins indicate effective cost management, which supports sustained profitability and competitive pricing strategies.

Dividend Consistency

Consistent dividend payments demonstrate financial stability and a commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Declining Revenue Trend

Declining revenues can impact future profitability and growth, necessitating strategic adjustments to reverse the trend and sustain long-term success.

Low Equity Ratio

A low equity ratio may indicate limited financial buffer against market volatility, potentially affecting the company's ability to manage risks effectively.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder strategic planning and investment, impacting the company's ability to capitalize on market opportunities.

Hennessy Advisors Business Overview & Revenue Model

Company Description

Hennessy Advisors, Inc. (HNNA) is an investment management firm that primarily focuses on providing asset management services to individual and institutional investors. The company operates in the financial services sector, offering a range of investment products, including mutual funds and private investment accounts. Hennessy Advisors is known for its long-term investment strategies and commitment to delivering superior returns through disciplined investment processes and thorough research.

How the Company Makes Money

Hennessy Advisors generates revenue primarily through management fees charged on the assets under management (AUM) in its investment funds. These fees are typically calculated as a percentage of the AUM and vary based on the specific fund's structure and strategy. Additionally, the company may earn performance fees if certain investment objectives are met, providing an incentive for achieving higher returns. Significant partnerships with financial advisors and distribution networks also contribute to its earnings by expanding its client base and enhancing the accessibility of its investment products. Furthermore, Hennessy Advisors may receive income from advisory services provided to institutional clients, adding another layer to its revenue generation strategy.

Hennessy Advisors Financial Statement Overview

Summary

Hennessy Advisors exhibits strong profitability and cash flow management, crucial for sustaining operations in the asset management industry. However, the declining revenue trend is a concern that needs addressing to ensure long-term growth.

Income Statement

Hennessy Advisors shows a strong gross profit margin of over 70% in recent years, indicating efficient cost management. However, the revenue growth rate has been inconsistent, with a notable decline in the latest year. The net profit margin is healthy, reflecting good profitability, but the declining revenue trend poses a risk to future earnings.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. The return on equity has improved, indicating better utilization of shareholder funds. However, the equity ratio is relatively low, which could imply potential risks in asset management.

Cash Flow

Hennessy Advisors demonstrates strong cash flow management with a high operating cash flow to net income ratio. The free cash flow growth rate has rebounded positively, and the free cash flow to net income ratio is nearly 1, indicating efficient cash conversion. This stability in cash flow is a positive indicator for future financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.54M	35.54M	29.65M	24.02M	29.67M	32.76M
Gross Profit	24.91M	24.91M	20.58M	12.04M	21.34M	23.68M
EBITDA	14.14M	13.44M	9.11M	6.56M	10.05M	11.11M
Net Income	9.96M	9.96M	7.10M	4.77M	6.19M	7.90M
Balance Sheet
Total Assets	161.01M	160.46M	152.10M	145.72M	143.65M	101.91M
Cash, Cash Equivalents and Short-Term Investments	72.44M	72.44M	63.93M	60.49M	58.50M	15.85M
Total Debt	40.50M	40.50M	40.50M	39.44M	39.52M	1.00M
Total Liabilities	62.72M	62.72M	60.79M	57.97M	57.35M	18.64M
Stockholders Equity	97.74M	97.74M	91.31M	87.75M	86.30M	83.26M
Cash Flow
Free Cash Flow	13.35M	13.35M	8.96M	6.92M	8.45M	10.14M
Operating Cash Flow	13.79M	13.79M	9.28M	7.13M	8.66M	10.39M
Investing Cash Flow	-627.00K	-627.00K	-1.30M	-819.00K	-231.00K	-249.00K
Financing Cash Flow	-4.66M	-4.66M	-4.53M	-4.33M	34.22M	-4.26M

Hennessy Advisors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNNA, the sentiment is Negative. The current price of 9.2 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 9.82, and below the 200-day MA of 10.58, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 32.66 is Neutral, neither overbought nor oversold. The STOCH value of 9.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HNNA.

Hennessy Advisors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNNA	74 Outperform	$72.61M	7.23	10.54%	5.98%	19.87%	38.04%
OFS	70 Outperform	$61.77M	19.12	2.25%	25.81%	-14.76%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MRCC	64 Neutral	$141.26M	-33.71	-2.25%	15.46%	-34.92%	-132.22%
OXSQ	48 Neutral	$143.74M	-49.16	-1.61%	23.86%	-177.91%	55.08%
GECC	48 Neutral	$93.79M	-12.14	-5.98%	22.84%	47.01%	-179.46%
SSSS	45 Neutral	$237.88M	3.90	35.45%	5.28%	―	―

Hennessy Advisors Corporate Events

Hennessy Advisors Announces Quarterly Cash Dividend

On October 29, 2025, Hennessy Advisors, Inc. announced a quarterly cash dividend of $0.1375 per share, payable on November 26, 2025, to shareholders of record as of November 12, 2025. This marks the company’s 67th consecutive dividend payment, reflecting its solid financial health and commitment to providing income to shareholders without requiring them to sell their shares.