Hennessy Advisors, Inc. (HNNA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SuRo Capital Corp.

Westwood Holdings Group, Inc.

Hennessy Advisors, Inc.

Medallion Financial Corp.

Associated Capital Group, Inc.

Great Elm Capital Corp.

Great Elm Group, Inc.

Logan Ridge Finance Corp.

Silvercrest Asset Management Group, Inc.

Monroe Capital Corp.

OFS Capital Corp.

Why is Hennessy Advisors, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.90%

Poor long term growth as Net Sales has grown by an annual rate of 2.00% and Operating profit at 7.84%

Flat results in Mar 26

PRE-TAX PROFIT(Q) Lowest at USD 2.65 MM
NET PROFIT(Q) Lowest at USD 1.91 MM
EPS(Q) Lowest at USD 0.24

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 -13.58%, its profits have risen by 3.8% ; the PEG ratio of the company is 3.5

Majority shareholders : Mutual Funds

Below par performance in long term as well as near term

Along with generating -13.58% 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 Report

Verdict Report

How 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.

-13.58%

1.27

32.46%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

Sales to Capital Employed (avg)

Tax Ratio

27.39%

Dividend Payout Ratio

43.23%

Pledged Shares

Institutional Holding

15.98%

ROCE (avg)

34.41%

ROE (avg)

7.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

ROCE (Latest)

44.26%

ROE (Latest)

9.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

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

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND EQV(HY)

Highest at USD 145.05 MM

DIVIDEND PER SHARE(HY)

Highest at USD 9.64

-5What is not working for the Company

PRE-TAX PROFIT(Q)

Lowest at USD 2.65 MM

NET PROFIT(Q)

Lowest at USD 1.91 MM

EPS(Q)

Lowest at USD 0.24

Here's what is working for Hennessy Advisors, Inc.

Cash and Eqv

Highest at USD 145.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 9.64

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Hennessy Advisors, Inc.

Pre-Tax Profit

Lowest at USD 2.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 1.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)