Hennessy Advisors (HNNA) AI Stock Analysis

• Market Cap: $91.74M
• Dividend Yield: 4.67%
• Average Volume (3M): 11.49K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.42
• Revenue Growth: 32.04%
• EPS Growth: 59.34%
• Country: US
• Employees: 17
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.27
• Shares Outstanding: 7,787,560
• 10 Day Avg. Volume: 9,696
• 30 Day Avg. Volume: 11,492
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 5.29
• 1Y Price Target: $12.50
• Price Target Upside: 6.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $12.50 ▲(6.11% Upside)

Hennessy Advisors' strong financial performance and attractive valuation are the most significant factors contributing to its overall score. The company's stable balance sheet and robust cash flows support its growth potential. Technical analysis presents mixed signals, but the positive corporate event sentiment adds to the stock's appeal.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust expansion and market demand for Hennessy's investment products, supporting long-term business sustainability.

Profitability Margins

High profitability margins reflect efficient operations and pricing power, enabling Hennessy to sustain competitive advantages and reinvest in growth.

Cash Flow Strength

Robust cash flow generation supports operational needs and growth initiatives, ensuring financial stability and flexibility for Hennessy Advisors.

Negative Factors

Debt Levels

Rising debt levels may strain financial flexibility, impacting Hennessy's ability to invest in growth opportunities or weather economic downturns.

Market Volatility

Market volatility can affect asset management fees and client investment behavior, posing challenges to revenue stability and growth projections.

Employee Base

A small employee base may limit Hennessy's ability to scale operations and manage larger client portfolios, potentially affecting growth capacity.

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 generates revenue primarily through management fees charged on the assets it manages for clients. These fees are typically a percentage of the assets under management (AUM) and can vary based on the type of investment product or service provided. Additionally, the company may earn performance fees based on the investment returns generated above a certain benchmark. Hennessy Advisors may also generate income from advisory services, where it provides strategic investment guidance to clients. Significant partnerships with financial institutions and distribution platforms can further enhance its revenue through increased access to client bases and investment flows.

Hennessy Advisors Financial Statement Overview

Summary

Hennessy Advisors demonstrates strong financial performance with significant revenue growth and high profitability margins. The balance sheet is stable with manageable leverage, and cash flows are robust, supporting operational needs. However, monitoring debt levels is advisable.

Income Statement

Hennessy Advisors shows strong financial performance with a significant revenue growth rate of 76% TTM, indicating robust expansion. The gross profit margin of approximately 70% and net profit margin of 27.5% reflect high profitability. EBIT and EBITDA margins are also healthy, at 29% and 40.5% respectively, showcasing efficient operations. The consistent improvement in margins and growth trajectory are key strengths.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.42, indicating prudent leverage. Return on equity is reasonable at 10.5%, reflecting effective use of equity to generate profits. The equity ratio stands at 61%, suggesting a strong equity base relative to total assets. While the company maintains a stable financial position, the increase in total debt over time could be a potential risk.

Cash Flow

Cash flow analysis reveals a positive trend with a free cash flow growth rate of 3.9% TTM. The operating cash flow to net income ratio of 2.82 indicates strong cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, demonstrating efficient conversion of earnings into cash. Overall, the cash flow position is robust, supporting the company's growth and operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.82M	29.65M	24.02M	29.67M	32.76M	33.39M
Gross Profit	23.83M	20.58M	12.04M	21.34M	23.68M	24.57M
EBITDA	13.33M	9.11M	6.56M	10.05M	11.11M	11.56M
Net Income	9.87M	7.10M	4.77M	6.19M	7.90M	7.84M
Balance Sheet
Total Assets	158.00M	152.10M	145.72M	143.65M	101.91M	94.79M
Cash, Cash Equivalents and Short-Term Investments	70.33M	63.93M	60.49M	58.50M	15.85M	9.96M
Total Debt	40.50M	40.50M	39.44M	39.52M	1.00M	330.00K
Total Liabilities	61.45M	60.79M	57.97M	57.35M	18.64M	16.61M
Stockholders Equity	96.55M	91.31M	87.75M	86.30M	83.26M	78.18M
Cash Flow
Free Cash Flow	13.07M	8.96M	6.92M	8.45M	10.14M	10.45M
Operating Cash Flow	13.43M	9.28M	7.13M	8.66M	10.39M	10.62M
Investing Cash Flow	-551.00K	-1.30M	-819.00K	-231.00K	-249.00K	-882.00K
Financing Cash Flow	-4.58M	-4.53M	-4.33M	34.22M	-4.26M	-24.47M

Hennessy Advisors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.78
• 50DMA: Negative
• 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 11.78 is above the 20-day moving average (MA) of 11.43, below the 50-day MA of 11.91, and above the 200-day MA of 11.18, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 40.80 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	$91.74M	9.40	10.57%	4.67%	32.04%	59.34%
GSBD	71 Outperform	$1.29B	9.11	9.36%	15.40%	-55.16%	47.09%
RAND	70 Outperform	$54.11M	5.75	-11.50%	34.08%	80.67%	-157.99%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
CION	58 Neutral	$518.26M	15.47	-1.27%	14.97%	-11.83%	-108.11%
ESGL	51 Neutral	$150.54M	―	-1184.17%	―	―	―
SSSS	45 Neutral	$209.98M	4.53	29.40%	2.84%	168.31%	―

Hennessy Advisors Corporate Events

Hennessy Advisors Reports Q3 2025 Financial Results

On August 6, 2025, Hennessy Advisors, Inc. announced its financial results for the third fiscal quarter ending June 30, 2025, reporting a 4% increase in total revenue to $8.1 million and a 5% rise in net income to $2.1 million compared to the same period in 2024. The company declared a quarterly dividend of $0.1375 per share, payable on September 4, 2025, with an annualized yield of 4.4%. Despite market volatility, Hennessy Advisors remains optimistic about future performance, citing growth in assets under management and a strong cash position as indicators of its ability to capitalize on future opportunities.