Hennessy Advisors, Inc. cash flow to debt ratio of 34.05% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Hennessy Advisors, Inc.'s free cash flow has increased 48.95% from $8.96M last year to $13.35M, signaling increasing performance

Hennessy Advisors, Inc.'s debt to equity ratio is 0.00, which means that the company's assets are healthy financed, signaling financial stability.

Hennessy Advisors, Inc.'s debt has decreased relative to shareholder equity from 0.44 last year to 0.00 today, signaling strengthened financials

Hennessy Advisors, Inc. has a net cash position, so leverage is healthy.

Hennessy Advisors, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Hennessy Advisors, Inc.'s profit margin has increased (3.49%) in the last year from 23.94% to 24.78%, signaling increasing performance

Hennessy Advisors, Inc.'s short-term assets of $76.52M exceed its short-term liabilities of $6.01M

Hennessy Advisors, Inc.'s return on assets of 6.73% is higher than the 5.00% threshold, indicating efficient asset utilization

Hennessy Advisors, Inc.'s return on equity of 8.31%, is lower than 15.00%, indicating bad performance

Hennessy Advisors, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Hennessy Advisors, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Hennessy Advisors, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Hennessy Advisors, Inc. has a free cash flow yield of 17.02%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Hennessy Advisors, Inc.'s yearly earnings has increased 40.34% since last year from $7.10M to $9.96M, signaling increasing performance

Hennessy Advisors, Inc.'s yearly revenue has increased 19.87% since last year from $29.65M to $35.54M, signaling increasing performance

ROIC 6.89% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Hennessy Advisors, Inc.'s 3-year revenue CAGR of 6.20% is positive, indicating growing revenue over the past 3 years

Hennessy Advisors, Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Hennessy Advisors, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Hennessy Advisors, Inc. is undervalued relative to its fair value price of 28.54 based on Discounted Cash Flow model

Hennessy Advisors, Inc. has an earnings yield of 10.53%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Hennessy Advisors, Inc. is undervalued relative to its fair value price of 15.97 based on EBITDA multiple model

Hennessy Advisors, Inc. has an EV/EBITDA ratio of 3.46x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Hennessy Advisors, Inc. is undervalued relative to its fair value price of 11.96 based on Earnings Fair Value model

Hennessy Advisors, Inc. has a PEG-ratio over 1 which is considered overvalued

Hennessy Advisors, Inc. has a price-to-book ratio of 0.78x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Hennessy Advisors, Inc. has a price-to-sales ratio of 2.35x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue