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Hennessy Advisors, Inc. (HNNA)
:HNNA
US Market
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Hennessy Advisors (HNNA) AI Stock Analysis

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HNNA

Hennessy Advisors

(NASDAQ:HNNA)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$12.00
▲(14.83% Upside)
Hennessy Advisors' overall stock score is driven by strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, which tempers the overall score. The absence of earnings call data and corporate events means the score relies heavily on financial and technical factors.

Hennessy Advisors (HNNA) vs. SPDR S&P 500 ETF (SPY)

Hennessy Advisors Business Overview & Revenue Model

Company DescriptionHennessy Advisors (HNNA) is a financial services company that primarily operates in the asset management sector. The firm focuses on managing investments for a variety of clients, including individuals, institutions, and other entities, by offering a range of investment products and services. Hennessy Advisors is known for its commitment to providing high-quality investment strategies and insights, particularly in areas such as mutual funds and investment advisory services.
How the Company Makes MoneyHennessy 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue35.82M29.65M24.02M29.67M32.76M33.39M
Gross Profit23.83M20.58M12.04M21.34M23.68M24.57M
EBITDA13.33M9.11M6.56M10.05M11.11M11.56M
Net Income9.87M7.10M4.77M6.19M7.90M7.84M
Balance Sheet
Total Assets158.00M152.10M145.72M143.65M101.91M94.79M
Cash, Cash Equivalents and Short-Term Investments70.33M63.93M60.49M58.50M15.85M9.96M
Total Debt40.50M40.50M39.44M39.52M1.00M330.00K
Total Liabilities61.45M60.79M57.97M57.35M18.64M16.61M
Stockholders Equity96.55M91.31M87.75M86.30M83.26M78.18M
Cash Flow
Free Cash Flow13.07M8.96M6.92M8.45M10.14M10.45M
Operating Cash Flow13.43M9.28M7.13M8.66M10.39M10.62M
Investing Cash Flow-551.00K-1.30M-819.00K-231.00K-249.00K-882.00K
Financing Cash Flow-4.58M-4.53M-4.33M34.22M-4.26M-24.47M

Hennessy Advisors Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.45
Price Trends
50DMA
11.59
Negative
100DMA
11.43
Negative
200DMA
11.20
Negative
Market Momentum
MACD
-0.28
Positive
RSI
35.74
Neutral
STOCH
24.86
Neutral
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 10.45 is below the 20-day moving average (MA) of 11.44, below the 50-day MA of 11.59, and below the 200-day MA of 11.20, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 24.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HNNA.

Hennessy Advisors Risk Analysis

Hennessy Advisors disclosed 35 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.14B8.1916.66%-55.16%47.09%
70
Outperform
-6.1433.98%80.67%-157.99%
67
Neutral
$81.07M8.3410.57%5.26%32.04%59.34%
58
Neutral
$491.70M-49.6315.78%-11.83%-108.11%
57
Neutral
$180.65M-114.59-4.30%
45
Neutral
$217.38M4.642.75%168.31%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HNNA
Hennessy Advisors
10.41
1.05
11.22%
SSSS
SuRo Capital
9.10
5.19
132.74%
RAND
Rand Capital
14.92
-1.17
-7.27%
GSBD
Goldman Sachs BDC
9.99
-1.56
-13.51%
CION
CION Investment Corp
9.44
-0.75
-7.36%
ESGL
ESGL Holdings
4.32
2.27
110.73%

Hennessy Advisors Corporate Events

DividendsFinancial Disclosures
Hennessy Advisors Reports Q3 2025 Financial Results
Positive
Aug 6, 2025

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.

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.Date of analysis: Sep 19, 2025