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Hennessy Advisors
(NASDAQ:HNNA)
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Rating:73Outperform
Price Target:
$11.00
▲(9.67% Upside)
Action:Upgraded
Date:08/06/26
HNNA’s score is driven primarily by strong underlying financial quality (high cash conversion, healthy margins, and low current leverage) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weaker/mixed technical momentum and the company’s history of uneven revenue/earnings trends.
Positive Factors
Cash generation
Consistently strong cash conversion provides durable internal funding for dividends, buybacks, and opportunistic M&A without relying on external financing. High free cash flow relative to net income improves resilience to AUM swings and supports long-term shareholder returns and strategic flexibility.
Negative Factors
Revenue volatility
Persistently uneven revenue growth drives unpredictable advisory fee income and compresses forecasting accuracy. For a fee-based asset manager, volatility in top-line AUM-linked revenue can force reactive cost or distribution changes and constrain multi-year strategic investments and hiring.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently strong cash conversion provides durable internal funding for dividends, buybacks, and opportunistic M&A without relying on external financing. High free cash flow relative to net income improves resilience to AUM swings and supports long-term shareholder returns and strategic flexibility.
Read all positive factors
Hennessy Advisors Key Performance Indicators (KPIs)
Hennessy Advisors (HNNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.62M
Dividend Yield5.76%
Average Volume (3M)6.41K
Price to Earnings (P/E)9.7
Beta (1Y)0.44
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. Volume7,270
30 Day Avg. Volume6,410
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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 recurring fees tied to assets under management (AUM) in the mutual funds and strategies it advises and distributes. The core revenue stream is investment advisory/management fees assessed as a per...
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 | 11.99M | 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
Positive
10.03
Price Trends
9.90
Positive
9.83
Positive
9.68
Positive
Market Momentum
0.11
Negative
61.29
Neutral
78.20
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 10.03 is above the 20-day moving average (MA) of 9.98, above the 50-day MA of 9.90, and above the 200-day MA of 9.68, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.20 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $80.62M | 9.71 | 8.31% | 5.76% | -6.90% | -17.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
55 Neutral | $52.39M | -2.37 | -18.44% | 21.74% | -43.53% | -316.63% | |
54 Neutral | $83.34M | -1.86 | -32.53% | 21.50% | -11.06% | -288.02% | |
51 Neutral | $145.41M | -3.03 | -25.97% | 31.11% | ― | -1756.77% |
* Financial Sector Average
HNNA
Hennessy Advisors
10.20
-1.19
-10.46%
OXSQ
Oxford Square Capital
1.35
-0.37
-21.51%
OFS
OFS Capital
3.91
-3.42
-46.63%
GECC
Great Elm Capital
6.00
-3.43
-36.37%
Hennessy Advisors Corporate Events
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...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
Hennessy Advisors to Fully Redeem 2026 Nasdaq Notes
Neutral
May 28, 2026
On May 28, 2026, Hennessy Advisors, Inc. notified the trustee of its intent to fully redeem its outstanding 4.875% notes due 2026, which carry an aggregate principal balance of $40.25 million and are listed on Nasdaq under the symbol HNNAZ. The co...
Business Operations and StrategyDividendsFinancial Disclosures
Hennessy Advisors Posts Weaker Q2 Results, Maintains Dividend
Negative
May 6, 2026
On May 6, 2026, Hennessy Advisors, Inc. reported results for its second fiscal quarter ended March 31, 2026, highlighting declines in key performance metrics, including a 12% drop in total revenue to $8.1 million, a 26% decrease in net income to $...
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.