ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Hennessy Advisors, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.90%
2
Poor long term growth as Net Sales has grown by an annual rate of 2.00% and Operating profit at 7.84%
3
Flat results in Jun 26
- NET PROFIT(9M) At USD 5.84 MM has Grown at -22.54%
- INTEREST COVERAGE RATIO(Q) Lowest at 393.42
4
With ROE of 9.16%, it has a very attractive valuation with a 0.76 Price to Book Value
- Over the past year, while the stock has generated a return of -1.85%, its profits have risen by 3.8% ; the PEG ratio of the company is 3.5
5
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 3.59% over the previous quarter and collectively hold 19.57% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Below par performance in long term as well as near term
- Along with generating -1.85% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hennessy Advisors, Inc. should be less than 10%
- Overall Portfolio exposure to Capital Markets should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hennessy Advisors, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Hennessy Advisors, Inc.
-1.16%
1.62
27.64%
S&P 500
16.06%
1.20
13.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.00%
EBIT Growth (5y)
7.84%
EBIT to Interest (avg)
7.19
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
27.39%
Dividend Payout Ratio
43.23%
Pledged Shares
0
Institutional Holding
15.98%
ROCE (avg)
34.41%
ROE (avg)
7.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.76
EV to EBIT
0.26
EV to EBITDA
0.25
EV to Capital Employed
0.11
EV to Sales
0.09
PEG Ratio
3.51
Dividend Yield
NA
ROCE (Latest)
44.26%
ROE (Latest)
9.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -34.54 %
RAW MATERIAL COST(Y)
Fallen by 0.34% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 9.9
-4What is not working for the Company
NET PROFIT(9M)
At USD 5.84 MM has Grown at -22.54%
INTEREST COVERAGE RATIO(Q)
Lowest at 393.42
Here's what is working for Hennessy Advisors, Inc.
Debt-Equity Ratio
Lowest at -34.54 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 9.9
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by 0.34% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Hennessy Advisors, Inc.
Interest Coverage Ratio
Lowest at 393.42
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At USD 5.84 MM has Grown at -22.54%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
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