Hennessy Advisors, Inc.
Hennessy Advisors, Inc. Fundamental Analysis
Hennessy Advisors, Inc. (HNNA) shows strong financial fundamentals with a PE ratio of 9.46, profit margin of 25.40%, and ROE of 8.53%. The company generates $0.0B in annual revenue with strong year-over-year growth of 19.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HNNA's fundamental strength across five key dimensions:
Efficiency Score
WeakHNNA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHNNA trades at attractive valuation levels.
Growth Score
ExcellentHNNA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHNNA maintains a strong and stable balance sheet.
Profitability Score
ModerateHNNA maintains healthy but balanced margins.
Key Financial Metrics
Is HNNA Expensive or Cheap?
P/E Ratio
HNNA trades at 9.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HNNA's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Hennessy Advisors, Inc. at 0.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.32 times EBITDA. This is generally considered low.
How Well Does HNNA Make Money?
Net Profit Margin
For every $100 in sales, Hennessy Advisors, Inc. keeps $25.40 as profit after all expenses.
Operating Margin
Core operations generate 33.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.53 in profit for every $100 of shareholder equity.
ROA
Hennessy Advisors, Inc. generates $5.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hennessy Advisors, Inc. generates strong operating cash flow of $10.79M, reflecting robust business health.
Free Cash Flow
Hennessy Advisors, Inc. generates strong free cash flow of $10.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.32 in free cash annually.
FCF Yield
HNNA converts 13.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HNNA Stacks Against Its Sector Peers
| Metric | HNNA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.46 | 18.95 | Better (Cheaper) |
| ROE | 8.53% | 807.00% | Weak |
| Net Margin | 25.40% | 1289.00% | Weak |
| Debt/Equity | 0.40 | 0.97 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 622.28 | Neutral |
| ROA | 5.22% | -23448.00% (disorted) | Weak |
HNNA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hennessy Advisors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.49%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
19.92%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
22.57%
Industry Style: Value, Dividend, Cyclical
High Growth