Hennessy EBITDA vs. Return On Equity

HNNA Stock  USD 12.63  0.42  3.44%   
Based on the key profitability measurements obtained from Hennessy's financial statements, Hennessy's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Hennessy's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
7.5 M
Current Value
10.2 M
Quarterly Volatility
7.8 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Hennessy's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's EV To Sales is expected to grow to 3.16, whereas Days Sales Outstanding is forecasted to decline to 6.57. At present, Hennessy's Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Operating Income is expected to grow to about 9.9 M, whereas Change To Netincome is forecasted to decline to about 1.9 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.780.6943
Moderately Up
Slightly volatile
Net Profit Margin0.170.2394
Way Down
Pretty Stable
Operating Profit Margin0.280.2991
Notably Down
Pretty Stable
Pretax Profit Margin0.260.3273
Significantly Down
Very volatile
Return On Assets0.06840.0467
Way Up
Pretty Stable
Return On Equity0.07380.0777
Notably Down
Slightly volatile
For Hennessy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hennessy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hennessy Ad utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hennessy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hennessy Ad over time as well as its relative position and ranking within its peers.
  

Hennessy's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hennessy. If investors know Hennessy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hennessy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.765
Earnings Share
0.83
Revenue Per Share
3.543
Quarterly Revenue Growth
0.365
Return On Assets
0.0327
The market value of Hennessy Ad is measured differently than its book value, which is the value of Hennessy that is recorded on the company's balance sheet. Investors also form their own opinion of Hennessy's value that differs from its market value or its book value, called intrinsic value, which is Hennessy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hennessy's market value can be influenced by many factors that don't directly affect Hennessy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hennessy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hennessy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hennessy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Hennessy Ad Return On Equity vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Hennessy's current stock value. Our valuation model uses many indicators to compare Hennessy value to that of its competitors to determine the firm's financial worth.
Hennessy Ad is rated # 2 in ebitda category among its peers. It is one of the top stocks in return on equity category among its peers . The ratio of EBITDA to Return On Equity for Hennessy Ad is about  95,406,977 . At present, Hennessy's EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hennessy's earnings, one of the primary drivers of an investment's value.

Hennessy Return On Equity vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Hennessy

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
6.56 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Hennessy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0688
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Hennessy Return On Equity Comparison

Hennessy is currently under evaluation in return on equity category among its peers.

Hennessy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Hennessy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hennessy will eventually generate negative long term returns. The profitability progress is the general direction of Hennessy's change in net profit over the period of time. It can combine multiple indicators of Hennessy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income100.9 M106 M
Operating Income7.3 M9.9 M
Income Before Tax7.6 M9.3 M
Total Other Income Expense Net239.4 K251.4 K
Net Income5.5 M6.3 M
Income Tax Expense2.1 MM
Net Income Applicable To Common Shares7.1 M8.5 M
Net Income From Continuing Ops5.5 M9.6 M
Non Operating Income Net Other263.4 K276.5 K
Interest Income2.9 MM
Net Interest Income305.9 K321.2 K
Change To Netincome2.6 M1.9 M
Net Income Per Share 0.92  0.58 
Income Quality 1.31  1.36 
Net Income Per E B T 0.73  0.54 

Hennessy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Hennessy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hennessy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hennessy's important profitability drivers and their relationship over time.

Use Hennessy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hennessy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hennessy will appreciate offsetting losses from the drop in the long position's value.

Hennessy Pair Trading

Hennessy Ad Pair Trading Analysis

The ability to find closely correlated positions to Hennessy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hennessy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hennessy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hennessy Ad to buy it.
The correlation of Hennessy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hennessy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hennessy Ad moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hennessy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Hennessy position

In addition to having Hennessy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Coal Thematic Idea Now

Coal
Coal Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Coal theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Coal Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Hennessy Ad offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Hennessy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Hennessy Ad Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hennessy Ad Stock:
Check out Risk vs Return Analysis.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Hennessy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hennessy Ad at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hennessy's income statement, its balance sheet, and the statement of cash flows.
Potential Hennessy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hennessy investors may work on each financial statement separately, they are all related. The changes in Hennessy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hennessy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.