XVARY Composite Score
41
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
Hennessy Advisors runs open-end mutual funds with 17 employees and earns fees for managing them.
How it gets paid
Last year Hennessy Advisors made $36M in revenue.
Why it's growing
Revenue grew 19.9% last year. Revenue at $8M mattered most because this business lives on fees.
What just happened
Latest quarter revenue $8M and EPS of $0.24 both fell from a year ago.
At a Glance
C++ balance sheet — some cracks in the foundation
60/100 earnings predictability — reasonably predictable
9.1x trailing p/e — the market's not buying it — or you found a deal
6.2% dividend yield — cash in your pocket every quarter
6.3% return on capital — nothing to write home about
XVARY composite: 41/100 — below average
What They Do
Hennessy Advisors runs open-end mutual funds with 17 employees and earns fees for managing them.
Seventeen employees oversee $36M of annual revenue. That's $2.1M per employee. Operating margin → profit after day-to-day costs → 30.7%, so the firm keeps 31 cents of every dollar. Your money stays inside open-end funds, where the service, compliance, and reporting all sit in one house.
How They Make Money
$36M
annual revenue · their business grew +19.9% last year
total revenue
$36M
+19.9%
The Products That Matter
Mutual fund management
Hennessy Funds
16 mutual funds · ~$34M fee revenue
This is essentially the whole company: 16 funds generating about $34M in advisory fees, with earnings power tied directly to whether investors keep money in those products.
94.4% of revenue
Non-core income stream
Other Income
$2M · 5.6% of revenue
The number matters because it shows what HNNA is not: only $2M comes from anywhere outside advisory fees, so there is very little revenue cushion if fund balances drop.
small cushion
Key Numbers
$36M
annual revenue
That is the fee pool that funds the dividend and the debt load.
6.2%
dividend yield
You get paid while waiting, but only as long as cash keeps coming in.
30.7%
operating margin
The firm keeps 31 cents of every dollar before financing costs.
$40M
long-term debt
Debt is 34% of capital, so balance sheet slips matter fast.
Financial Health
C++
Strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 60 / 100
- long-term debt $40M (34% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
missed estimates
Latest quarter revenue $8M and EPS of $0.24 both fell from a year ago.
Revenue fell 14% Vs. last year. EPS fell 33% Vs. last year. Fee income moves with markets, so a weak market leaves fingerprints fast.
$8.0M
revenue
$0.24
eps
30.7%
operating margin
the number that mattered
Revenue at $8M mattered most because this business lives on fees, and fees shrink when assets cool.
source: company earnings report, 2024
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. Plain English, no spam.
Weekly updates
Earnings alerts
Plain English
No spam
What Could Go Wrong
The top risk is assets under management shrinking faster than the valuation implies.
High
Market-linked fee revenue
About 94.4% of revenue comes from advisory fees. If markets fall or clients pull money, revenue does not have another engine to lean on.
High impact on earnings, valuation, and dividend coverage
High
Debt maturity pressure
HNNA has $40M of debt and the snapshot flags 4.875% notes due 2026. For a company with a $77M market cap, refinancing terms matter a lot.
High impact on balance-sheet flexibility and capital returns
Med
Concentrated product lineup
The business runs through 16 mutual funds. That sounds diversified until you remember the company itself is tiny, with only about $34M of fee revenue across the whole platform.
Medium impact on growth consistency and client retention
Med
Weak competitive standing
This snapshot notes HNNA ranked 688th out of 879 finance stocks and scored higher than only 43% of companies evaluated by MarketBeat. That does not prove the stock is broken, but it does tell you the market is not treating it like a standout operator.
Medium impact on sentiment and multiple expansion
With 94.4% of revenue tied to advisory fees and $40M of debt due in a company worth about $77M, a modest asset slide can pressure earnings, the dividend, and refinancing flexibility at the same time.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Metric
Quarterly revenue versus the $30M annual estimate
The stock looks cheap because trailing earnings still exist. If revenue keeps tracking below last year's $34M base, that cheapness will not hold up for long.
Calendar
Q2 2026 earnings release
Expected around May 2026. You want to see whether the Q1 profit drop was a bad quarter or the new run rate.
Risk
4.875% notes due 2026
$40M in debt is large relative to a $77M market cap. Watch whether management refinances, pays it down, or starts talking more carefully about capital returns.
Trend
Fund performance gap
The snapshot cites a 2.15% one-year return versus an 18.58% benchmark. If that gap persists, outflows become easier to imagine and harder to dismiss.
Analyst Rankings
earnings predictability
60 / 100
This sits in the middle. In human-speak, analysts think the business is understandable, but the fee stream is too market-sensitive to treat as stable.
Source: institutional data
Institutional Activity
institutional ownership data for HNNA is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$10
Current price
Target midpoint · from current
Want the deeper analysis?
The full deep dive: DCF model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
See plans from $5/moThe Deep Dive