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
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 12.22 MM
- DEBT-EQUITY RATIO (HY) Lowest at -31.83 %
- RAW MATERIAL COST(Y) Fallen by 1.1% (YoY)
4
With ROE of 9.16%, it has a very attractive valuation with a 0.77 Price to Book Value
- Over the past year, while the stock has generated a return of -8.61%, its profits have risen by 3.8% ; the PEG ratio of the company is 3.6
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.78% over the previous quarter and collectively hold 15.57% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 13.68% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.61% returns
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.
-6.6%
0.90
37.12%
S&P 500
13.68%
0.71
19.28%
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
15.57%
ROCE (avg)
34.41%
ROE (avg)
7.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.77
EV to EBIT
0.39
EV to EBITDA
0.38
EV to Capital Employed
0.17
EV to Sales
0.14
PEG Ratio
3.58
Dividend Yield
NA
ROCE (Latest)
44.26%
ROE (Latest)
9.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 12.22 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -31.83 %
RAW MATERIAL COST(Y)
Fallen by 1.1% (YoY
CASH AND EQV(HY)
Highest at USD 144.42 MM
-8What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 463.54
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.35 times
PRE-TAX PROFIT(Q)
Lowest at USD 2.68 MM
NET PROFIT(Q)
Lowest at USD 1.93 MM
EPS(Q)
Lowest at USD 0.24
Here's what is working for Hennessy Advisors, Inc.
Operating Cash Flow
Highest at USD 12.22 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at -31.83 % 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
Cash and Eqv
Highest at USD 144.42 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 1.1% (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 463.54
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
Lowest at USD 2.68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 2.68 MM has Fallen at -21.32%
over average net sales of the previous four periods of USD 3.4 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 1.93 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
At USD 1.93 MM has Fallen at -22.49%
over average net sales of the previous four periods of USD 2.49 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.24
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 9.35 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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