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Hennessy Advisors
(NASDAQ:HNNA)
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Rating:75Outperform
Price Target:
$11.50
▲(14.66% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by strong financial quality (high margins and excellent cash conversion with currently low leverage) and an attractive valuation (low P/E and high dividend yield). Offsetting factors are muted technical momentum and business sensitivity/volatility highlighted by uneven revenue trends and slowing AUM/revenue recovery momentum, despite positive recent corporate updates.
Positive Factors
Strong cash conversion
Exceptional cash conversion indicates that reported profitability is translating into liquid resources rather than depending heavily on accounting gains. This supports recurring shareholder returns, internal funding of operations, and greater resilience when asset-management conditions become less favorable.
Negative Factors
Uneven revenue trajectory
The multi-year pattern shows that Hennessy’s earnings base is not expanding consistently. Because advisory fees depend on managed assets and shareholder flows, uneven revenue can make forward planning, dividend coverage, and sustained investment in distribution more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash conversion
Exceptional cash conversion indicates that reported profitability is translating into liquid resources rather than depending heavily on accounting gains. This supports recurring shareholder returns, internal funding of operations, and greater resilience when asset-management conditions become less favorable.
Read all positive factors
Hennessy Advisors Key Performance Indicators (KPIs)
Hennessy Advisors (HNNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.55M
Dividend Yield5.77%
Average Volume (3M)7.56K
Price to Earnings (P/E)9.7
Beta (1Y)0.52
Revenue Growth-6.90%
EPS Growth-17.68%
CountryUS
Employees18
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.05
Shares Outstanding7,904,410
10 Day Avg. Volume5,590
30 Day Avg. Volume7,564
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 Cap0.58
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda3.86
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
Operating as a publicly traded entity, Hennessy Advisors, Inc. is an investment management firm that provides its expertise to the Hennessy Funds and other investment companies. The firm is responsible for establishing and overseeing a diverse arr...
How the Company Makes Money
Hennessy Advisors primarily makes money by earning investment advisory and management fees for acting as the adviser to the Hennessy Funds. These fees are typically calculated as a percentage of assets under management (AUM) in the funds it overse...
Hennessy Advisors Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
72
Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.34M | 35.54M | 29.65M | 24.02M | 29.67M | 32.76M |
| Gross Profit | 25.62M | 24.91M | 20.58M | 12.04M | 21.34M | 23.68M |
| EBITDA | 12.07M | 13.44M | 9.11M | 6.56M | 10.05M | 11.11M |
| Net Income | 8.26M | 9.96M | 7.10M | 4.77M | 6.19M | 7.90M |
Balance Sheet | ||||||
| Total Assets | 122.76M | 160.46M | 152.10M | 145.72M | 143.65M | 101.91M |
| Cash, Cash Equivalents and Short-Term Investments | 35.36M | 72.44M | 63.93M | 60.49M | 58.50M | 15.85M |
| Total Debt | 425.00K | 40.50M | 40.50M | 39.44M | 39.52M | 1.00M |
| Total Liabilities | 21.61M | 62.72M | 60.79M | 57.97M | 57.35M | 18.64M |
| Stockholders Equity | 101.15M | 97.74M | 91.31M | 87.75M | 86.30M | 83.26M |
Cash Flow | ||||||
| Free Cash Flow | 10.18M | 13.35M | 8.96M | 6.92M | 8.45M | 10.14M |
| Operating Cash Flow | 10.51M | 13.79M | 9.28M | 7.13M | 8.66M | 10.39M |
| Investing Cash Flow | -332.00K | -627.00K | -1.30M | -819.00K | -231.00K | -249.00K |
| Financing Cash Flow | -45.15M | -4.66M | -4.53M | -4.33M | 34.22M | -4.26M |
Hennessy Advisors Technical Analysis
Neutral
10.03
Price Trends
10.21
Negative
10.02
Positive
9.84
Positive
Market Momentum
<0.01
Positive
48.10
Neutral
33.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNNA, the sentiment is Neutral. The current price of 10.03 is below the 20-day moving average (MA) of 10.27, below the 50-day MA of 10.21, and above the 200-day MA of 9.84, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.10 is Neutral, neither overbought nor oversold. The STOCH value of 33.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $80.55M | 9.70 | 8.31% | 5.77% | -6.90% | -17.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $53.59M | -2.42 | -18.44% | 17.00% | -43.53% | -316.63% | |
54 Neutral | $69.31M | -1.55 | -32.53% | 23.45% | -11.06% | -288.02% | |
50 Neutral | $120.63M | -2.51 | -25.97% | 37.33% | ― | -1756.77% |
* Financial Sector Average
HNNA
Hennessy Advisors
10.19
1.38
15.69%
OXSQ
Oxford Square Capital
1.12
-0.32
-22.01%
OFS
OFS Capital
4.00
-1.85
-31.61%
GECC
Great Elm Capital
4.99
-1.52
-23.31%
Hennessy Advisors Corporate Events
Business Operations and StrategyDividends
Hennessy Advisors Declares Quarterly Dividend, Reaffirming Commitment
Positive
Oct 28, 2026
On October 28, 2026, Hennessy Advisors, Inc. announced that its board had declared a quarterly cash dividend of $0.15 per share on its common stock, continuing a dividend program that has been in place for more than two decades. The dividend, whic...
Business Operations and StrategyDividendsFinancial Disclosures
Hennessy Advisors Posts Q3 Results, Boosts Financial Flexibility
Positive
Aug 5, 2026
On August 5, 2026, Hennessy Advisors, Inc. reported results for its third fiscal quarter ended June 30, 2026, highlighting a 4% year-over-year increase in revenue to $8.4 million and growth in assets under management to $4.4 billion. Net income fe...
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.