Hennessy Advisors (HNNA) AI Stock Analysis

• Market Cap: $86.42M
• Dividend Yield: 4.95%
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.34
• Revenue Growth: 41.94%
• EPS Growth: 85.49%
• Country: US
• Employees: 17
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management
• EPS (TTM): 0.33
• Shares Outstanding: 7,785,726
• 10 Day Avg. Volume: 8,616
• 30 Day Avg. Volume: 9,043
• PEG Ratio: -0.47
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.68
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 1.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• 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 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 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

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

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

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
35.55M	29.65M	24.02M	29.67M	32.76M	33.39M
	Gross Profit
22.48M	20.58M	12.04M	21.34M	23.68M	24.57M
	EBIT
12.80M	8.87M	6.33M	9.84M	10.88M	11.32M
	EBITDA
14.23M	12.22M	6.56M	10.05M	11.11M	11.56M
	Net Income Common Stockholders
9.77M	7.10M	4.77M	6.19M	7.90M	7.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.57M	63.93M	60.49M	58.50M	15.85M	9.96M
	Total Assets
155.53M	152.10M	145.72M	143.65M	101.91M	94.79M
	Total Debt
40.50M	40.50M	39.44M	39.52M	1.00M	330.00K
	Net Debt
-27.06M	-23.42M	-21.03M	-18.97M	-14.83M	-9.63M
	Total Liabilities
60.33M	60.79M	57.97M	57.35M	18.64M	16.61M
	Stockholders Equity
95.20M	91.31M	87.75M	86.30M	83.26M	78.18M
Cash Flow		Free Cash Flow
12.57M	8.96M	6.92M	8.45M	10.14M	10.45M
	Operating Cash Flow
12.97M	9.28M	7.13M	8.66M	10.39M	10.62M
	Investing Cash Flow
-434.00K	-1.30M	-819.00K	-231.00K	-249.00K	-882.00K
	Financing Cash Flow
-4.56M	-4.53M	-4.33M	34.22M	-4.26M	-24.47M

Hennessy Advisors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.10
• 50DMA: Positive
• 100DMA: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HNNA	80 Outperform	$86.42M	8.89	10.62%	4.95%	41.94%	85.49%
GSBD	71 Outperform	$1.36B	26.84	3.27%	16.55%	-28.04%	-69.52%
RAND	70 Outperform	$54.11M	4.73	13.04%	7.73%	134.64%	35.26%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%
ESGL	63 Neutral	$122.05M	―	-1184.17%	―	―	―
CION	58 Neutral	$481.21M	15.47	-1.88%	15.75%	2.30%	-63.97%
SSSS	45 Neutral	$172.87M	―	-9.96%	―	90.08%	-893.47%

Hennessy Advisors Corporate Events

Hennessy Advisors Reports 65% EPS Increase in Q2 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.