Hennessy Advisors, Inc. (HNNA): fair value, margin of safety and Wheel Score

Is HNNA undervalued?

Hennessy Advisors, Inc. (HNNA) closed at 10.43 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 17.03, which puts the price 39% below it. 6 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

There is a wide gap between Lynch (4.18) and 10 Cap (33.54). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files HNNA under High Yield Income: a dividend yield above 4%.

Nine valuation models for HNNA

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Hennessy Advisors, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 3.8/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are moderate - ROIC 7.2%, ROE 10.2%, ROA 6.2% - with debt at 0.41 times equity and a free-cash-flow yield of 12.3%.

The dividend yield is high at 5.63% (payout ratio 54%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Investment Advice 93%, Shareholder Service 7% (quarter Q3 FY2026).

Institutional ownership scores 2/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 18 Sep 2026.

Wheel Score 39: No options

No options are listed on Hennessy Advisors, Inc. in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 13k shares a day on a market cap of $82M, with a beta of 0.54 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 9 Dec 2026, 54 days away - outside the window of a 30-45-day put sold today.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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