Hennessy Advisors (HNNA) AI Stock Analysis

• Market Cap: $95.53M
• Dividend Yield: 4.51%
• Average Volume (3M): 7.36K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.41
• Revenue Growth: 41.94%
• EPS Growth: 85.49%
• Country: US
• Employees: 17
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 0.33
• Shares Outstanding: 7,785,726
• 10 Day Avg. Volume: 5,050
• 30 Day Avg. Volume: 7,356
• PEG Ratio: 0.15
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.71
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 1.51
• 1Y Price Target: $12.50
• Price Target Upside: 3.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $13.50 ▲(11.39%Upside)

Hennessy Advisors is currently performing well, as evidenced by strong financials, attractive valuation, and positive corporate developments. While the stock is bullish, investors should be cautious of current overbought technical signals.

Hennessy Advisors Business Overview & Revenue Model

Company Description

Hennessy Advisors, Inc. is publicly owned investment manager. It provides its services to Hennessy Funds and investment companies. The firm launches and manages equity, fixed income, and balanced mutual funds. It invests in the public equity and fixed income markets across the globe. The firm primarily invests in growth stocks of companies. It conducts in-house research to make its investments. Hennessy Advisors, Inc. was founded in 1989 and is based in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.

How the Company Makes Money

Hennessy Advisors makes money primarily through management fees charged on the assets under management (AUM) within its mutual funds. These fees are calculated as a percentage of the total AUM and are collected on an ongoing basis. The company's revenue is directly influenced by the performance and growth of its mutual fund offerings, as well as by market conditions that affect the value of the AUM. Additionally, Hennessy Advisors may earn revenue through performance fees, though these are less common in mutual fund structures compared to hedge funds. The company's earnings are also impacted by its ability to attract and retain investors, both individual and institutional, which can be influenced by its reputation, historical fund performance, and marketing efforts. Key partnerships, such as distribution agreements with financial advisors or broker-dealers, can also play a role in expanding its reach and growing its AUM.

Hennessy Advisors Financial Statement Overview

Summary

Hennessy Advisors shows strong profitability with robust revenue growth and excellent cash generation. The balance sheet is stable with conservative leverage. However, asset growth should be monitored.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	29.65M	24.02M	29.67M	32.76M	33.39M
Gross Profit	20.58M	12.04M	21.34M	23.68M	24.57M
EBITDA	12.22M	6.56M	10.05M	11.11M	11.56M
Net Income	7.10M	4.77M	6.19M	7.90M	7.84M
Balance Sheet
Total Assets	152.10M	145.72M	143.65M	101.91M	94.79M
Cash, Cash Equivalents and Short-Term Investments	63.93M	60.49M	58.50M	15.85M	9.96M
Total Debt	40.50M	39.44M	39.52M	1.00M	330.00K
Total Liabilities	60.79M	57.97M	57.35M	18.64M	16.61M
Stockholders Equity	91.31M	87.75M	86.30M	83.26M	78.18M
Cash Flow
Free Cash Flow	8.96M	6.92M	8.45M	10.14M	10.45M
Operating Cash Flow	9.28M	7.13M	8.66M	10.39M	10.62M
Investing Cash Flow	-1.30M	-819.00K	-231.00K	-249.00K	-882.00K
Financing Cash Flow	-4.53M	-4.33M	34.22M	-4.26M	-24.47M

Hennessy Advisors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 12.12 is below the 20-day moving average (MA) of 12.13, above the 50-day MA of 11.29, and above the 200-day MA of 10.86, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 17.92 is Positive, 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	77 Outperform	$95.53M	9.82	10.62%	4.51%	41.94%	85.49%
GSBD	71 Outperform	$1.38B	27.30	3.27%	16.23%	-28.04%	-69.52%
RAND	70 Outperform	$54.11M	5.52	13.04%	6.63%	134.64%	35.26%
Sector *	67 Neutral	$16.86B	11.82	9.77%	3.72%	12.02%	-8.27%
CION	58 Neutral	$521.71M	15.47	-1.88%	14.52%	2.30%	-63.97%
ESGL	50 Neutral	$132.56M	―	-1184.17%	―	―	―
SSSS	45 Neutral	$195.48M	―	-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.