Hennessy Advisors, Inc. (HNNA)
NASDAQ:HNNA
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Hennessy Advisors
(NASDAQ:HNNA)
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Rating:66Neutral
Price Target:
$11.00
▲(10.55% Upside)
Action:ReiteratedDate:02/11/26
The score is primarily driven by solid profitability and generally manageable leverage, but it is held back by recent declines in revenue and free cash flow plus weak debt-coverage metrics. Valuation helps meaningfully (low P/E and strong dividend yield), while technical signals and corporate updates are mixed, with recent operating weakness offset by a dividend increase and supportive governance outcomes.
Positive Factors
High Profitability & Margins
Sustained high margins indicate underlying operating strength and pricing power in the firm's investment strategies. Strong profitability provides internal funding for operations, supports ROE, and creates a buffer against revenue volatility, helping preserve long-term returns and strategic flexibility.
Negative Factors
Declining Revenue & AUM
As an asset manager, recurring fee revenue scales with AUM; a 14% drop materially reduces fee income and limits economies of scale. Persistent outflows or market declines can erode competitive position, constrain product investment and distribution, and depress medium-term organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Sustained high margins indicate underlying operating strength and pricing power in the firm's investment strategies. Strong profitability provides internal funding for operations, supports ROE, and creates a buffer against revenue volatility, helping preserve long-term returns and strategic flexibility.
Read all positive factors
Hennessy Advisors (HNNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.92M
Dividend Yield5.82%
Average Volume (3M)10.73K
Price to Earnings (P/E)9.8
Beta (1Y)0.45
Revenue Growth2.83%
EPS Growth2.12%
CountryUS
Employees17
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.24
Shares Outstanding7,892,177
10 Day Avg. Volume6,059
30 Day Avg. Volume10,735
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)0.83
Price to Sales (P/S)2.29
P/FCF Ratio6.10
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda3.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 f...
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 struct...
Hennessy Advisors Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.15M | 35.54M | 29.65M | 24.02M | 29.67M | 32.76M |
| Gross Profit | 25.21M | 24.91M | 20.58M | 12.04M | 21.34M | 23.68M |
| EBITDA | 12.21M | 13.44M | 9.11M | 6.56M | 10.05M | 11.11M |
| Net Income | 9.06M | 9.96M | 7.10M | 4.77M | 6.19M | 7.90M |
Balance Sheet | ||||||
| Total Assets | 159.56M | 160.46M | 152.10M | 145.72M | 143.65M | 101.91M |
| Cash, Cash Equivalents and Short-Term Investments | 71.98M | 72.44M | 63.93M | 60.49M | 58.50M | 15.85M |
| Total Debt | 40.73M | 40.50M | 40.50M | 39.44M | 39.52M | 1.00M |
| Total Liabilities | 60.65M | 62.72M | 60.79M | 57.97M | 57.35M | 18.64M |
| Stockholders Equity | 98.91M | 97.74M | 91.31M | 87.75M | 86.30M | 83.26M |
Cash Flow | ||||||
| Free Cash Flow | 11.84M | 13.35M | 8.96M | 6.92M | 8.45M | 10.14M |
| Operating Cash Flow | 12.22M | 13.79M | 9.28M | 7.13M | 8.66M | 10.39M |
| Investing Cash Flow | -560.00K | -627.00K | -1.30M | -819.00K | -231.00K | -249.00K |
| Financing Cash Flow | -4.67M | -4.66M | -4.53M | -4.33M | 34.22M | -4.26M |
Hennessy Advisors Technical Analysis
Positive
9.95
Price Trends
9.82
Positive
9.81
Positive
10.29
Negative
Market Momentum
0.04
Negative
57.07
Neutral
70.18
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 9.95 is above the 20-day moving average (MA) of 9.74, above the 50-day MA of 9.82, and below the 200-day MA of 10.29, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 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 36 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 0 New Risks
Hennessy Advisors Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $78.92M | 9.81 | 9.33% | 5.82% | 2.83% | 2.12% | |
64 Neutral | $339.87M | 4.69 | ― | 5.39% | ― | ― | |
55 Neutral | $54.26M | -1.93 | -23.38% | 25.87% | -7.52% | -216.36% | |
50 Neutral | $168.90M | -1.53 | -12.27% | 24.14% | ― | -10500.00% | |
49 Neutral | $76.27M | -2.74 | -24.20% | 22.43% | 7.98% | -817.71% |
* Financial Sector Average
HNNA
Hennessy Advisors
10.02
-0.13
-1.33%
SSSS
SuRo Capital
13.57
8.64
175.14%
OXSQ
Oxford Square Capital
1.92
-0.08
-4.00%
OFS
OFS Capital
3.84
-3.33
-46.43%
GECC
Great Elm Capital
5.56
-2.86
-33.94%
Hennessy Advisors Corporate Events
Executive/Board ChangesShareholder Meetings
Hennessy Advisors Shareholders Back Board, Pay and Auditor
Positive
Feb 9, 2026
At its annual meeting held on February 5, 2026, Hennessy Advisors, Inc. shareholders elected all eight nominated directors to terms running until the 2027 annual meeting, reinforcing continuity in the company’s board leadership. Shareholders...
DividendsFinancial Disclosures
Hennessy Advisors Posts Weaker Q1 Results, Raises Dividend
Negative
Feb 5, 2026
On February 5, 2026, Hennessy Advisors reported financial results for its first fiscal quarter of 2026, ended December 31, 2025, showing a 14% year-on-year decline in revenue to $8.3 million, a 32% drop in net income to $1.9 million, and a 33% dec...
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.