NasdaqCM:HCAC

Stock Analysis Report

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Executive Summary

Hennessy Capital Acquisition Corp. IV does not have significant operations.


Snowflake Analysis

Adequate balance sheet with poor track record.

Share Price & News

How has Hennessy Capital Acquisition IV's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCAC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

HCAC

8.2%

US Capital Markets

4.3%

US Market


1 Year Return

4.2%

HCAC

10.7%

US Capital Markets

10.3%

US Market

Return vs Industry: HCAC underperformed the US Capital Markets industry which returned 9.8% over the past year.

Return vs Market: HCAC underperformed the US Market which returned 9.7% over the past year.


Shareholder returns

HCACIndustryMarket
7 Day0.7%8.2%4.3%
30 Day1.3%16.3%11.5%
90 Dayn/a11.8%7.4%
1 Year4.2%4.2%13.0%10.7%12.7%10.3%
3 Yearn/a33.5%25.7%37.1%28.0%
5 Yearn/a61.3%46.0%64.7%46.2%

Price Volatility Vs. Market

How volatile is Hennessy Capital Acquisition IV's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hennessy Capital Acquisition IV undervalued compared to its fair value and its price relative to the market?

202.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HCAC ($10.29) is trading above our estimate of fair value ($0.58)

Significantly Below Fair Value: HCAC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HCAC is poor value based on its PE Ratio (202x) compared to the Capital Markets industry average (32.9x).

PE vs Market: HCAC is poor value based on its PE Ratio (202x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HCAC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HCAC is overvalued based on its PB Ratio (77.2x) compared to the US Capital Markets industry average (9.1x).


Next Steps

Future Growth

How is Hennessy Capital Acquisition IV forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.0%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hennessy Capital Acquisition IV has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hennessy Capital Acquisition IV performed over the past 5 years?

573.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: HCAC has a high level of non-cash earnings.

Growing Profit Margin: Insufficient data to determine if HCAC's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if HCAC's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare HCAC's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: HCAC earnings growth over the past year (573.4%) exceeded the Capital Markets industry 16.6%.


Return on Equity

High ROE: Whilst HCAC's Return on Equity (38.22%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Hennessy Capital Acquisition IV's financial position?


Financial Position Analysis

Short Term Liabilities: HCAC's short term assets ($907.0K) do not cover its short term liabilities ($2.8M).

Long Term Liabilities: HCAC's short term assets ($907.0K) do not cover its long term liabilities ($302.3M).


Debt to Equity History and Analysis

Debt Level: HCAC is debt free.

Reducing Debt: HCAC had no debt 5 years ago.

Debt Coverage: HCAC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HCAC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Hennessy Capital Acquisition IV's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HCAC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HCAC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCAC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCAC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCAC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Dan Hennessy (62yo)

1.83yrs

Tenure

Mr. Daniel Joseph Hennessy, also known as Dan, has been Chairman and Chief Executive Officer of Hennessy Capital Acquisition Corp. III. Since August 6, 2018. Mr. Hennessy is Chairman of the Board of Direct ...


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Hennessy
Chairman & CEO1.83yrsno datano data
Gregory Ethridge
President1.33yrsno data0.60% $2.3m
Nicholas Petruska
Executive VP1.83yrsno data0.80% $3.1m

1.8yrs

Average Tenure

42yo

Average Age

Experienced Management: HCAC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Hennessy
Chairman & CEO1.83yrsno datano data
Gregory Ethridge
President1.33yrsno data0.60% $2.3m
Richard Burns
Independent Director1.33yrsno data0.20% $771.7k
James O'Neil
Independent Director1.33yrsno data0.20% $771.7k
Bradley Bell
Independent Director1.33yrsno data0.20% $771.7k
Juan Mas
Independent Director1.33yrsno data0.20% $771.7k
Peter Shea
Independent Director1.33yrsno data0.20% $771.7k
Gretchen McClain
Independent Director1.33yrsno data0.20% $771.7k

1.3yrs

Average Tenure

61yo

Average Age

Experienced Board: HCAC's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hennessy Capital Acquisition Corp. IV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hennessy Capital Acquisition Corp. IV
  • Ticker: HCAC
  • Exchange: NasdaqCM
  • Founded: 2018
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$386.068m
  • Shares outstanding: 37.52m
  • Website: https://www.hennessycapllc.com

Location

  • Hennessy Capital Acquisition Corp. IV
  • 3485 North Pines Way
  • Suite 110
  • Wilson
  • Wyoming
  • 83014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCAC.UNasdaqCM (Nasdaq Capital Market)UnitsUSUSDMar 2019
HCACNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDApr 2019
HCAC.WNasdaqCM (Nasdaq Capital Market)WT EXP 090525USUSDApr 2019

Biography

Hennessy Capital Acquisition Corp. IV does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination. The company was founded in 2018 and is based in Wilson, Wyoming. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 06:24
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.