Hennessy Advisors, Inc. (HNNA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+205.8%

$31.47

vs $10.29 price

Levered DCF

$40.95

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.06

Safe zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.16×	10.82×	10.57×	10.45×	8.99×	7.75×	7.61×	5.21×
P/B	0.83×	0.84×	0.58×	0.75×	0.85×	0.78×	1.11×	1.51×
P/S	2.29×	2.58×	2.1×	2.19×	2.16×	1.83×	1.96×	1.97×
EV / EBITDA	3.68×	5.82×	4.49×	4.57×	5.04×	4.44×	4.62×	4.17×
Gross margin	70.1%	69.4%	50.1%	71.9%	72.3%	73.6%	51.6%	56.0%
Operating margin	37.0%	29.9%	26.4%	33.2%	33.2%	33.9%	37.5%	44.8%
Net margin	28.0%	23.9%	19.9%	20.9%	24.1%	23.5%	25.8%	37.8%
Current ratio	12.72×	13.78×	15.2×	13.07×	3.54×	2.63×	2.55×	2.55×
Debt / equity	0.41×	0.44×	0.45×	0.46×	0.01×	0×	0.23×	0.31×
Interest coverage	5.73×	3.9×	2.81×	4.64×	0×	25.32×	14.78×	19.95×
Dividend yield	5.2%	0.0%	8.1%	6.2%	5.6%	6.5%	4.2%	2.7%
Payout ratio	42.2%	0.1%	86.0%	65.3%	50.3%	50.6%	32.1%	14.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.2%	7.8%	5.4%	7.2%	9.5%	10.0%	14.6%	29.0%
Return on invested capital	6.2%	4.4%	3.2%	5.5%	8.2%	9.0%	11.2%	21.2%
Return on assets	6.2%	4.7%	3.3%	4.3%	7.8%	8.3%	10.0%	18.8%
Free cash flow yield	16.4%	11.7%	13.7%	13.0%	14.3%	17.1%	16.9%	19.7%
Earnings yield	12.2%	9.3%	9.5%	9.5%	11.1%	12.9%	13.2%	19.2%
Enterprise value	$49.5M	$53M	$29.5M	$45.9M	$56M	$51.3M	$76.5M	$103.7M
Net debt / EBITDA	-2.38×	-2.57×	-3.2×	-1.89×	-1.33×	-0.83×	-0.44×	-0.15×
Cash conversion cycle (days)	34	43	39	30	-78	30	-27	31