Hennessy Advisors Inc. Common Stock (HNNA)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $10.31 on 2026-10-13, Hennessy Advisors has an $81.5 million market cap and is an asset-management business with only 17 employees. It runs mutual funds, mostly through Hennessy Funds, and earns fees on assets under management. I like the economics: no debt, a 5.78% dividend yield, and trailing free cash flow of $10.2 million, which FairStock converts to a 12.5% FCF yield on the market cap. FairStock's P/B is 0.81, and its Lynch category is ASSET PLAY because it trades at 0.81x book value. FairStock also computes a Graham Number of $17.39, leaving a 40.71% margin of safety, with Piotroski 8/9 and Altman 3.63. FairStock's ROE is 8.36% and ROCE is 4.96%, so returns are only moderate. On filed figures, in fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $8.4 million, net income $2.0 million, and diluted EPS $0.25. A year earlier, in fiscal Q3 2025, the quarter ended 2025-06-30, revenue was $8.1 million, net income $2.1 million, and diluted EPS $0.26, so revenue rose slightly while profit slipped. Full-year FY2025 revenue was $35.5 million and net income $10.0 million, up from FY2024 revenue of $29.6 million and net income of $7.1 million; FY2023 was $24.0 million revenue and $4.8 million net income. The moat is not wide: asset managers can suffer fund outflows, and results depend on market levels and fee pressure. Still, the balance sheet and cash generation are real. The price looks modestly cheap on asset value and cash flow, but the recent profit dip and small scale keep this in the careful, not excited, pile.

In plain English: Hennessy Advisors manages mutual funds with a very small staff of 17 people. The company is profitable, pays a high dividend, and carries no debt, but its latest reported quarterly profit slipped a little. At $10.31 a share, the price looks cheaper than the company's accounting value and cash generation suggest, though the business itself is only steady, not spectacular.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer