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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Hennessy Advisors, Inc.

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Great Elm Group, Inc.

OFS Capital Corp.

Great Elm Capital Corp.

Logan Ridge Finance Corp.

Monroe 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 -0.21% and Operating profit at 4.62%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 13.43 MM
NET SALES(9M) At USD 27.04 MM has Grown at 29.57%
ROCE(HY) Highest at 10.57%

With ROE of 10.27%, it has a very attractive valuation with a 0.90 Price to Book Value

Over the past year, while the stock has generated a return of -1.46%, its profits have risen by 87.9% ; the PEG ratio of the company is 0.1

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.34% over the previous quarter and collectively hold 13.39% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -1.46% 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.

-14.86%

1.05

39.21%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.21%

EBIT Growth (5y)

4.62%

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

59.84%

Pledged Shares

Institutional Holding

13.39%

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

0.90

EV to EBIT

1.41

EV to EBITDA

1.38

EV to Capital Employed

0.65

EV to Sales

0.51

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

46.34%

ROE (Latest)

10.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 13.43 MM

NET SALES(9M)

At USD 27.04 MM has Grown at 29.57%

ROCE(HY)

Highest at 10.57%

DEBT-EQUITY RATIO (HY)

Lowest at -30.89 %

RAW MATERIAL COST(Y)

Fallen by -2.26% (YoY

NET PROFIT(9M)

Higher at USD 7.54 MM

CASH AND EQV(HY)

Highest at USD 137.9 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 11.06 times

-1What is not working for the Company

NET SALES(Q)

At USD 8.05 MM has Fallen at -9.37%

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

Operating Cash Flow

Highest at USD 13.43 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -30.89 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Profit

At USD 7.54 MM has Grown at 58.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 137.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 11.06 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

Higher at USD 7.54 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (USD MM)

Raw Material Cost

Fallen by -2.26% (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.

Net Sales

At USD 8.05 MM has Fallen at -9.37%

over average net sales of the previous four periods of USD 8.89 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)