Hypothekarbank Lenzburg AG (HBLN) AI Stock Analysis

• Market Cap: CHF293.12M
• Dividend Yield: 2.97%
• Average Volume (3M): 19.00
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.05
• Revenue Growth: 4.84%
• EPS Growth: -10.41%
• Country: CH
• Employees: 347
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 169.70
• Shares Outstanding: 72,000
• 10 Day Avg. Volume: 21
• 30 Day Avg. Volume: 19
• PEG Ratio: -5.91
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 2.12
• P/FCF Ratio: -53.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: CHF4,121.00 ▲(2.51% Upside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is held back primarily by weak and inconsistent cash-flow quality and a sharp 2025 revenue decline, despite relatively stable net income and a steady balance sheet. Technical indicators are broadly neutral with slightly negative momentum. Valuation is a modest positive, supported by a moderate P/E and ~3% dividend yield.

Positive Factors

Earnings Resilience

Net income stability around CHF 18–21M shows earnings resilience despite volatile top-line trends. This durable profit base supports dividend continuity, regulatory capital buffers and risk absorption, giving the bank time to manage cyclical mortgage origination and margin pressures without immediate capital strain.

Local Mortgage Focus

A long-standing local mortgage and retail banking focus builds customer relationships, deposit stability and referral pipelines via real estate partnerships. That regional franchise and tailored SME/client knowledge create a defensible origination moat and steady interest income over multiple cycles.

Stable Capitalization

Steady asset and equity growth with ROE near 3.6–4.0% indicates disciplined capital generation and moderate profitability. Consistent capitalization provides capacity for underwriting, absorbs credit shocks, and supports prudent balance-sheet growth without frequent external recapitalization.

Negative Factors

Sharp Revenue Drop

A ~56% revenue decline in 2025 represents a material deterioration in core top-line drivers for a mortgage-focused bank. Persistent or recurrent revenue weakness would erode margins and reserve-building capacity, limiting reinvestment, advisory fee growth and the ability to expand lending without stressing profitability.

Weak Cash Generation

Repeated negative operating cash flow and persistent negative free cash flow indicate inconsistent conversion of accounting earnings into liquid resources. Over the medium term this undermines funding for growth, increases reliance on wholesale or deposit funding, and constrains flexibility for dividends or capital investments.

Rising Leverage

Higher leverage, with debt-to-equity rising into the 1.7–2.4x range and increasing in 2025, heightens sensitivity to credit losses and funding stress. Structurally higher leverage can amplify earnings volatility, raise capital adequacy attention from regulators, and reduce strategic flexibility during adverse market conditions.

Hypothekarbank Lenzburg AG Business Overview & Revenue Model

Company Description

Hypothekarbank Lenzburg AG (HBLN) is a Swiss bank based in Lenzburg, specializing in mortgage lending and personal banking services. Established in 1852, the bank focuses on providing tailored financial solutions for individuals and small to medium-sized enterprises (SMEs) in the region. HBLN offers a range of products, including mortgages, savings accounts, payment services, and financial advisory, with a strong emphasis on customer service and local market expertise.

How the Company Makes Money

HBLN generates revenue primarily through interest income derived from mortgage lending. The bank provides various mortgage products, including fixed-rate and variable-rate loans, which yield interest payments from borrowers. Additionally, HBLN earns fees from account maintenance, transaction services, and financial advisory services offered to clients. The bank also benefits from asset management and investment services, which contribute to its overall earnings. Strategic partnerships with local real estate agencies and businesses enhance its market presence and facilitate customer acquisition, further supporting its revenue streams.

Hypothekarbank Lenzburg AG Financial Statement Overview

Summary

Mixed fundamentals: income statement and balance sheet are mid-range (revenue declined sharply in 2025 and leverage is rising, but net income has remained relatively stable), while cash flow quality is weak with volatile operating cash flow and mostly negative free cash flow.

Income Statement

Revenue has grown over most of the period (2021–2024), but 2025 shows a sharp decline (down ~56% year over year), indicating weaker top-line momentum. Profitability remains solid for a mortgage-focused bank, with net margin generally in the mid-teens to low-20s, though margins have compressed versus 2020–2022. Net income has been relatively stable (~CHF 18–21M), which supports earnings resilience despite the volatile revenue line.

Balance Sheet

The balance sheet shows steady growth in total assets and equity over time, with return on equity consistently around ~3.6%–4.0%, suggesting stable but modest profitability for the capital base. Leverage is meaningful: debt-to-equity has typically run around ~1.7x–2.4x, with 2025 moving higher versus 2024, which increases sensitivity to credit and funding conditions. Overall capitalization appears stable, but the leverage trend bears monitoring.

Cash Flow

Cash flow quality is the weakest area due to large swings: operating cash flow was deeply negative in 2022–2024, then turned modestly positive in 2025. Free cash flow has been negative in most recent years (including 2025), and 2025 free cash flow fell sharply versus the prior year. While banking cash flows can be volatile due to balance-sheet movements, the pattern still points to inconsistent cash generation relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	137.97M	137.20M	145.12M	132.03M	94.95M	80.84M
Gross Profit	123.89M	122.85M	109.90M	109.22M	86.11M	79.00M
EBITDA	17.11M	21.82M	23.27M	24.45M	21.64M	21.72M
Net Income	18.81M	20.01M	20.46M	21.15M	18.63M	18.25M
Balance Sheet
Total Assets	8.14B	8.26B	7.23B	6.89B	6.66B	6.45B
Cash, Cash Equivalents and Short-Term Investments	1.38B	0.00	853.49M	1.04B	1.19B	1.28B
Total Debt	1.08B	1.35B	922.95M	977.57M	1.04B	1.18B
Total Liabilities	7.55B	7.71B	6.69B	6.36B	6.14B	5.94B
Stockholders Equity	591.73M	555.39M	543.97M	531.98M	519.47M	509.07M
Cash Flow
Free Cash Flow	-252.90M	-5.44M	-505.80M	-407.25M	-419.84M	28.18M
Operating Cash Flow	-252.07M	14.66M	-504.14M	-405.40M	-418.88M	28.18M
Investing Cash Flow	-10.74M	180.61M	-21.48M	-14.13M	-15.26M	0.00
Financing Cash Flow	170.40M	843.24M	340.80M	271.05M	343.26M	0.00

Hypothekarbank Lenzburg AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4020.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:HBLN, the sentiment is Positive. The current price of 4020 is below the 20-day moving average (MA) of 4053.00, below the 50-day MA of 4044.00, and below the 200-day MA of 4049.10, indicating a bullish trend. The MACD of 1.91 indicates Positive momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:HBLN.

Hypothekarbank Lenzburg AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCJ	73 Outperform	CHF236.62M	19.05	―	3.31%	-9.68%	-13.74%
BVZN	71 Outperform	CHF254.49M	10.71	―	1.51%	2.43%	9.82%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HBLN	55 Neutral	CHF293.12M	14.41	3.93%	2.97%	4.84%	-10.41%
LEON	47 Neutral	CHF251.53M	-7.33	―	21.87%	-4.06%	-109.73%