Hennessy Advisors, Inc. (HNNA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Hennessy Advisors, Inc. (HNNA) Financial Services Profile

Hennessy Advisors, Inc., founded in 1989, is an investment manager based in Novato, California, offering services to Hennessy Funds and investment companies. The firm manages equity, fixed income, and balanced mutual funds, primarily investing in global public markets with a focus on growth stocks, and currently has a market capitalization of $80.4M.

What Is the Investment Thesis for HNNA?

With a market capitalization of $80.4M and a P/E ratio of 9.69, the company demonstrates profitability, supported by a strong gross margin of 76.8% and a profit margin of 25.4%. The dividend yield of 5.48% offers an attractive income stream for investors. Key growth catalysts include expanding the range of mutual fund offerings and attracting new investment companies. However, potential risks include market volatility and increased competition in the asset management sector. The company's beta of 0.63 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

HNNA Key Highlights

Market capitalization of $80.4M indicates a relatively small but established player in the asset management industry.

• P/E ratio of 9.69 suggests the company is potentially undervalued compared to its earnings.
• Profit margin of 25.4% demonstrates strong profitability and efficient operations.
• Gross margin of 76.8% highlights the company's ability to generate significant revenue from its services.
• Dividend yield of 5.48% provides an attractive income stream for investors.

Who Are HNNA's Competitors?

HNNA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are HNNA's Key Strengths?

Established presence in the asset management industry.

• Focus on growth stocks.
• In-house research capabilities.
• Attractive dividend yield.

What Are HNNA's Weaknesses?

Relatively small market capitalization.

• Limited geographic diversification.
• Dependence on Hennessy Funds for a significant portion of revenue.
• Small number of employees.

What Could Drive HNNA Stock Higher?

Potential launch of new mutual funds targeting specific investment themes by Q4 2026.

• Continued efforts to attract new investment companies and expand the client base.
• Investment in digital marketing and online client acquisition strategies.

What Are the Key Risks for HNNA?

Inconsistent delivery — missed Wall Street EPS estimates in 7 of the last 8 reported quarters.

• Market volatility could negatively impact assets under management and revenue.
• Increased competition in the asset management sector could put pressure on fees.
• Regulatory changes could increase compliance costs and impact profitability.
• Dependence on Hennessy Funds for a significant portion of revenue.

What Are the Growth Opportunities for HNNA?

• Expanding Mutual Fund Offerings: Hennessy Advisors can grow by introducing new mutual funds targeting specific investment themes or asset classes. The market for specialized investment funds is expanding as investors seek tailored solutions. By launching funds focused on emerging markets, sustainable investments, or specific sectors, Hennessy Advisors can attract new clients and increase assets under management. This expansion could increase revenue by 15-20% over the next three years.
• Attracting New Investment Companies: Hennessy Advisors can actively pursue partnerships with new investment companies seeking experienced management services. The market for outsourced investment management is growing as smaller firms look to leverage the expertise of established players. By offering customized solutions and a proven track record, Hennessy Advisors can attract new clients and expand its asset base. This strategy could increase assets under management by 10-15% annually.
• Enhancing Digital Marketing and Client Acquisition: Investing in digital marketing and online client acquisition strategies can significantly expand Hennessy Advisors' reach. The digital channel provides a cost-effective way to target potential investors and showcase the company's investment expertise. By improving its online presence and offering digital tools, Hennessy Advisors can attract a younger demographic of investors and increase its client base. This initiative could lead to a 20-25% increase in new client acquisitions.
• Geographic Expansion: Hennessy Advisors can explore opportunities to expand its geographic presence beyond its current locations. Targeting regions with growing wealth and a demand for investment services can drive significant growth. By establishing partnerships with local firms or opening new offices, Hennessy Advisors can tap into new markets and diversify its revenue streams. This expansion could increase revenue by 10-15% over the next five years.
• Strategic Acquisitions: Hennessy Advisors can consider strategic acquisitions of smaller asset management firms to expand its capabilities and market share. Acquiring firms with complementary investment strategies or a strong client base can accelerate growth and diversify revenue streams. By integrating acquired firms effectively, Hennessy Advisors can enhance its competitive position and increase its assets under management. This strategy could lead to a 25-30% increase in assets under management.

What Are HNNA's Competitive Advantages?

• Established brand reputation in the asset management industry.
• In-house research capabilities provide a competitive edge in identifying investment opportunities.
• Long-term relationships with Hennessy Funds and other investment companies.

What Does HNNA Do?

Hennessy Advisors, Inc., established in 1989, is a publicly owned investment management firm headquartered in Novato, California. The company's primary focus is providing investment advisory services to the Hennessy Funds and other investment companies. Hennessy Advisors manages a range of mutual funds, including equity, fixed income, and balanced funds, catering to diverse investment objectives. The firm's investment strategy centers on investing in public equity and fixed income markets worldwide, with a particular emphasis on growth stocks. Hennessy Advisors conducts in-house research to identify investment opportunities and manage its portfolios. With additional offices in Boston, Massachusetts, and Chapel Hill, North Carolina, the company extends its reach and expertise across different regions. Hennessy Advisors aims to deliver long-term value to its clients through disciplined investment processes and a commitment to thorough research.

What Products and Services Does HNNA Offer?

• Manages equity, fixed income, and balanced mutual funds.
• Provides investment advisory services to Hennessy Funds and other investment companies.
• Invests in public equity and fixed income markets globally.
• Focuses primarily on growth stocks.
• Conducts in-house research to make investment decisions.
• Offers a range of investment solutions to meet diverse client objectives.

How Does HNNA Make Money?

• Generates revenue primarily through management fees charged on assets under management (AUM).
• Fees are typically a percentage of the total value of the assets managed.
• May also earn performance-based fees for exceeding certain investment benchmarks.

What Industry Does HNNA Operate In?

Hennessy Advisors, Inc. operates within the asset management industry, which is characterized by intense competition and evolving market dynamics. The industry is influenced by factors such as interest rates, economic growth, and regulatory changes. As an investment manager, Hennessy Advisors competes with larger firms offering a wider range of investment products and services. The company's focus on growth stocks and in-house research differentiates it within the competitive landscape. The asset management industry is expected to grow, driven by increasing demand for investment solutions and rising disposable incomes.

Who Are HNNA's Key Customers?

• Hennessy Funds
• Investment companies seeking investment management services.
• Individual investors through mutual funds.

The most recent 12 insider filings for Hennessy Advisors, Inc. break down as 9 sales and 3 purchases. On net that is roughly 12K shares acquired (about $209K) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Hennessy Advisors, Inc.

Revenue for Hennessy Advisors, Inc. came in at $8.4M during Q3 FY2026, a 3.2% improvement versus the preceding quarter. The company recorded net income of $2.0M, with diluted EPS of $0.25. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, HNNA averaged $0.26 in diluted EPS.

HNNA Valuation & Market Position

With a $80.4M market cap, Hennessy Advisors, Inc. sits in the micro-cap segment of the market. Relative to its peer group, HNNA's quantitative score of 83/100 is above the peer average of 62/100.

Return on equity for Hennessy Advisors, Inc. stands at 8.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.2%, showing how much profit it generates from its asset base. HNNA trades at a trailing price-to-earnings ratio of 9.69, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 13.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.78 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 10.5%, the inverse of the P/E and a quick read on earnings relative to price.

Hennessy Advisors, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.04 places it in the safe zone, indicating low near-term bankruptcy risk.

Hennessy Advisors, Inc. has missed Wall Street's EPS estimate in 7 of its last 8 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 15.8% below estimates on average.

Company Profile

Hennessy Advisors, Inc. operates in the Asset Management industry within the Financial Services sector. It is headquartered in Novato, US. The company is led by CEO Neil Joseph Hennessy. HNNA has traded publicly since 2005.

HNNA Financials

HNNA Latest News

HNNA Analyst Consensus

HNNA MoonshotScore

Hennessy Advisors, Inc. Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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