Hennessy Advisors, Inc. (HNNA) AI Stock Analysis

Founded in 1989 and based in Novato, California, Hennessy Advisors, Inc. is an investment manager with 17 employees. The company manages a range of mutual funds under the Hennessy Funds brand for individual and institutional investors. Its funds cover equity, fixed income, and balanced asset classes, targeting global public equity and debt markets. The firm's core strategy emphasizes research-driven investments in growth stocks. Alongside its headquarters in California, Hennessy operates offices in Boston, Massachusetts, and Chapel Hill, North Carolina.

Between FY2020 and FY2025, revenue registered a 5-year compound annual growth rate of 1.3%. After annual revenue dropped to $24.0M in FY2023, it rebounded to $29.6M in FY2024 and reached $35.5M in FY2025, representing 19.9% annual growth. Net income rose to $10.0M in FY2025 with an operating margin of 37.0% and diluted earnings per share of $1.26. Across the trailing twelve months, revenue reached $33.3M with an operating margin of 34.7% and EPS of $1.05. For the latest quarter ended June 30, 2026, revenue increased 4.2% year-over-year, while quarterly earnings declined 3.8%.

As of June 30, 2026, Hennessy Advisors held $35.4M in cash and short-term investments against $425,000 in total debt, yielding net cash of $34.9M. The balance sheet reflects a debt-to-equity ratio of 0.00 and a current ratio of 9.39, with shareholders' equity at $101.1M out of $122.8M in total assets. During FY2025, operating cash flow reached $13.8M and free cash flow was $13.4M. Capital expenditures totaled $440,000, share repurchases took $459,000, and dividend payments totaled $4.2M.

At $10.25 per share, Hennessy Advisors carries a market capitalization of $81.0M and an enterprise value of $47.0M. The stock trades at a trailing price-to-earnings multiple of 9.8x and a forward P/E of 5.1x, below the median of its US-listed Financial Services peers of 12.1x trailing and 10.8x forward. Its enterprise value-to-EBITDA ratio of 3.3x also sits below the peer group median of 11.7x. Over the past year, the stock returned 8.1%, trailing the S&P 500 benchmark return of 16.8%, and over five years it gained 33.9% versus 83.0% for the index.

Hennessy Advisors pays an annual forward dividend of $0.60 per share, distributed quarterly, which equals a dividend yield of 5.85%. The dividend payout ratio stands at 56.6%, and the company has paid dividends for 22 consecutive years. Over the last 5 years, dividend growth annualized was 0.0%, with the most recent ex-dividend date on August 20, 2026.

Wall Street coverage features a mean price target of $19.50, representing an upside of 90.2% compared to the October 16, 2026 closing price of $10.25. The company has beaten consensus earnings per share estimates in each of the last 4 quarters. The next earnings announcement date is scheduled for December 2, 2026.

This page is an AI-written research summary of Hennessy Advisors, Inc. (HNNA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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