📊 HNNAZ Key Takeaways
Is Hennessy Advisors Inc. (HNNAZ) a Good Investment?
Hennessy Advisors demonstrates strong profitability margins (31.3% operating, 23.2% net) and impressive earnings growth (40.3% YoY), supported by a fortress balance sheet with minimal leverage (0.16x debt/equity) and substantial cash. However, severely depressed ROE (2.0%) and ROA (1.2%) reveal poor capital efficiency, while operating cash flow of $661K significantly lags net income of $1.9M, raising earnings quality concerns that temper the growth narrative.
Profitability improved with double-digit revenue growth, strong operating/net margins, and a cash-rich, low-leverage balance sheet. Yet weak cash conversion versus net income and very low ROE/ROA point to earnings quality and capital efficiency concerns that limit upside absent sustained, high-quality growth.
Why Buy Hennessy Advisors Inc. Stock? HNNAZ Key Strengths
- Exceptional net and operating margins (23.2% and 31.3%) indicating pricing power and cost control in investment advisory services
- Accelerating earnings growth (40.3% net income growth outpacing 19.9% revenue growth) demonstrates operating leverage
- Fortress balance sheet with $72M cash, low debt-to-equity of 0.16x, and strong liquidity ratios (1.75x current/quick) providing financial flexibility
- Strong operating margin (31.3%) and net margin (23.2%)
- Revenue and EPS growth accelerating YoY
- Solid liquidity and low leverage with large cash balance
HNNAZ Stock Risks: Hennessy Advisors Inc. Investment Risks
- Critical capital efficiency problem with ROE of 2.0% and ROA of 1.2%, suggesting excess idle assets or equity not generating adequate returns
- Substantial gap between net income ($1.9M) and operating cash flow ($661K) indicates potential earnings quality issues or working capital drains requiring investigation
- Micro-cap company with modest absolute profitability and limited scale in competitive investment advisory sector; zero insider buying activity in 90 days
- Weak operating cash flow relative to net income (low cash conversion)
- Very low ROE/ROA indicating inefficient capital use
- Revenue sensitivity to AUM/fee compression and market conditions
Key Metrics to Watch
- Operating cash flow to net income ratio - must improve to validate earnings quality
- Return on equity trajectory - critical to demonstrate improved capital deployment efficiency
- Assets under management (AUM) growth and management fee realization - core operational drivers for advisory firms
- AUM/net flows
- Operating cash flow to net income (cash conversion)
Hennessy Advisors Inc. (HNNAZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Hennessy Advisors Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HNNAZ Profit Margin, ROE & Profitability Analysis
HNNAZ vs Market Sector: How Hennessy Advisors Inc. Compares
How Hennessy Advisors Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hennessy Advisors Inc. Stock Overvalued? HNNAZ Valuation Analysis 2026
Based on fundamental analysis, Hennessy Advisors Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hennessy Advisors Inc. Balance Sheet: HNNAZ Debt, Cash & Liquidity
HNNAZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hennessy Advisors Inc.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $0.92 reflects profitable operations.
HNNAZ Revenue Growth, EPS Growth & YoY Performance
HNNAZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $8.3M | $1.9M | $0.24 |
| Q3 2024 | $5.7M | $1.1M | $0.15 |
| Q2 2024 | $5.9M | $1.1M | $0.16 |
| Q1 2024 | $6.1M | $1.1M | $0.15 |
| Q3 2023 | $5.7M | $1.1M | $0.15 |
| Q2 2023 | $5.9M | $1.1M | $0.15 |
| Q3 2022 | $6.9M | $1.3M | $0.17 |
| Q2 2022 | $7.7M | $1.6M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hennessy Advisors Inc. Dividends, Buybacks & Capital Allocation
HNNAZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hennessy Advisors Inc. (CIK: 0001145255)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HNNAZ
What is the AI rating for HNNAZ?
Hennessy Advisors Inc. (HNNAZ) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HNNAZ's key strengths?
Claude: Exceptional net and operating margins (23.2% and 31.3%) indicating pricing power and cost control in investment advisory services. Accelerating earnings growth (40.3% net income growth outpacing 19.9% revenue growth) demonstrates operating leverage. ChatGPT: Strong operating margin (31.3%) and net margin (23.2%). Revenue and EPS growth accelerating YoY.
What are the risks of investing in HNNAZ?
Claude: Critical capital efficiency problem with ROE of 2.0% and ROA of 1.2%, suggesting excess idle assets or equity not generating adequate returns. Substantial gap between net income ($1.9M) and operating cash flow ($661K) indicates potential earnings quality issues or working capital drains requiring investigation. ChatGPT: Weak operating cash flow relative to net income (low cash conversion). Very low ROE/ROA indicating inefficient capital use.
What is HNNAZ's revenue and growth?
Hennessy Advisors Inc. reported revenue of $8.3M.
Does HNNAZ pay dividends?
Hennessy Advisors Inc. pays dividends, with $1.1M distributed to shareholders in the trailing twelve months.
Where can I find HNNAZ SEC filings?
Official SEC filings for Hennessy Advisors Inc. (CIK: 0001145255) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HNNAZ's EPS?
Hennessy Advisors Inc. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HNNAZ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hennessy Advisors Inc. has a HOLD rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HNNAZ stock overvalued or undervalued?
Valuation metrics for HNNAZ: ROE of 2.0% (sector avg: 15%), net margin of 23.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HNNAZ stock in 2026?
Our dual AI analysis gives Hennessy Advisors Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HNNAZ's free cash flow?
Hennessy Advisors Inc.'s operating cash flow is $661.0K, with capital expenditures of $60.0K. FCF margin is 7.2%.
How does HNNAZ compare to other Market stocks?
Vs Default sector averages: Net margin 23.2% (avg: 12%), ROE 2.0% (avg: 15%), current ratio 1.75 (avg: 1.8).