📊 HNNAZ Key Takeaways
Is HNNAZ a Good Investment? Thesis Analysis
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.
Why Buy 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
HNNAZ Investment Risks to Consider
- 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
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
HNNAZ Financial Metrics
💡 AI Analyst Insight
HENNESSY ADVISORS INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HNNAZ Profitability Ratios
HNNAZ vs Default Sector
How HENNESSY ADVISORS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HNNAZ Overvalued or Undervalued?
Based on fundamental analysis, HENNESSY ADVISORS INC has mixed fundamental signals relative to the Default 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.
HNNAZ Balance Sheet & Liquidity
HNNAZ 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HNNAZ Quarterly 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.
HNNAZ Capital Allocation
HNNAZ SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 65% 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.
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.
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 65% 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 Default stocks?
Vs Default sector averages: Net margin 23.2% (avg: 12%), ROE 2.0% (avg: 15%), current ratio 1.75 (avg: 1.8).