Hawthorn Bancshares (HWBK) AI Stock Analysis

• Market Cap: $251.49M
• Dividend Yield: 2.17%
• Average Volume (3M): 8.46K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.46
• Revenue Growth: 0.16%
• EPS Growth: 258.06%
• Country: US
• Employees: 255
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.89
• Shares Outstanding: 6,897,646
• 10 Day Avg. Volume: 12,833
• 30 Day Avg. Volume: 8,459
• PEG Ratio: <0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 14.65
• 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: 74 Outperform
• Price Target: $38.00 ▲(13.26% Upside)

Hawthorn Bancshares scores well due to strong corporate events and valuation metrics. Technical analysis supports a positive trend, though caution is advised due to potential overbought conditions. Financial performance is mixed, with profitability strengths offset by revenue and cash flow concerns.

Positive Factors

Profitability Metrics

Strong profitability metrics indicate efficient cost management and the ability to generate profits, supporting long-term financial health.

Dividend Increase

Increasing dividends demonstrate confidence in financial stability and commitment to returning value to shareholders, enhancing investor trust.

Loan Portfolio Growth

Growth in the loan portfolio suggests expanding market reach and increased demand for financial services, which can drive future revenue.

Negative Factors

Declining Revenue Growth

Declining revenue growth can signal challenges in market competitiveness or product demand, potentially impacting long-term financial performance.

Negative Free Cash Flow Growth

Negative free cash flow growth may limit the company's ability to reinvest in business operations and pursue growth opportunities, affecting future prospects.

Reliance on Debt

High reliance on debt can increase financial risk, especially in rising interest rate environments, potentially impacting long-term stability.

Hawthorn Bancshares Business Overview & Revenue Model

Company Description

Hawthorn Bancshares, Inc. (HWBK) is a financial holding company based in Missouri, primarily engaged in providing a range of banking and financial services through its subsidiary, Hawthorn Bank. The company operates in the banking sector, focusing on commercial and retail banking, as well as wealth management services. Its core products include personal and commercial loans, deposit accounts, mortgage services, and investment advisory services, catering to both individual and business clients.

How the Company Makes Money

Hawthorn Bancshares generates revenue primarily through interest income from loans and fees associated with various banking services. The company's key revenue streams include interest earned on loans to consumers and businesses, which typically constitutes the largest portion of its income. Additionally, Hawthorn Bank earns non-interest income through service charges on deposit accounts, mortgage origination fees, and wealth management services. The company may also engage in investment activities, further contributing to its earnings. Strategic partnerships with local businesses and community organizations enhance its market presence, while effective management of operational costs supports overall profitability.

Hawthorn Bancshares Financial Statement Overview

Summary

Hawthorn Bancshares presents a mixed financial picture. Strong profitability metrics are offset by declining revenue growth and free cash flow. The balance sheet is stable, but reliance on debt could be a risk factor. Improvement in revenue growth and cash flow generation is needed.

Income Statement

Hawthorn Bancshares shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth at -7.4%, which is concerning. However, the company maintains a healthy net profit margin of 18.87% and a strong EBIT margin of 34.37%, indicating efficient cost management and profitability. The gross profit margin has decreased compared to previous years, which could impact future profitability if not addressed.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.15, which is manageable for a regional bank. Return on equity is solid at 13.63%, demonstrating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if interest rates rise.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow growth rate of -14.31% in the TTM period. The operating cash flow to net income ratio is low at 1.67%, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is strong at 89.38%, suggesting that the company is still able to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.65M	109.67M	87.96M	83.22M	81.39M	78.02M
Gross Profit	77.71M	71.88M	52.79M	73.63M	77.18M	62.50M
EBITDA	29.12M	24.01M	2.54M	27.23M	30.50M	19.74M
Net Income	22.21M	18.26M	956.00K	20.75M	22.52M	14.29M
Balance Sheet
Total Assets	1.93B	1.83B	1.88B	1.92B	1.83B	1.73B
Cash, Cash Equivalents and Short-Term Investments	234.32M	270.65M	282.19M	337.38M	468.85M	226.64M
Total Debt	0.00	132.69M	157.70M	154.21M	152.57M	203.45M
Total Liabilities	1.77B	1.68B	1.74B	1.80B	1.68B	1.60B
Stockholders Equity	164.94M	149.55M	136.09M	127.41M	148.96M	130.59M
Cash Flow
Free Cash Flow	10.84M	22.59M	15.51M	17.71M	29.62M	19.19M
Operating Cash Flow	13.71M	25.59M	17.61M	20.28M	30.21M	21.02M
Investing Cash Flow	-63.12M	1.25M	54.19M	-206.53M	-127.53M	-139.56M
Financing Cash Flow	95.06M	-69.30M	-62.07M	110.07M	76.87M	220.79M

Hawthorn Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWBK, the sentiment is Positive. The current price of 33.55 is below the 20-day moving average (MA) of 34.23, above the 50-day MA of 31.93, and above the 200-day MA of 29.77, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 71.69 is Negative, neither overbought nor oversold. The STOCH value of 98.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWBK.

Hawthorn Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCCO	77 Outperform	$236.07M	12.83	12.21%	2.02%	11.59%	42.03%
LCNB	77 Outperform	$238.90M	10.12	8.97%	5.23%	5.07%	228.39%
HWBK	74 Outperform	$251.49M	11.42	14.27%	2.17%	0.16%	258.06%
BPRN	73 Outperform	$238.86M	13.73	6.73%	3.54%	12.92%	56.52%
CFFI	71 Outperform	$248.53M	9.49	10.89%	2.40%	8.53%	42.73%
CBNA	70 Outperform	$251.27M	13.38	13.91%	―	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hawthorn Bancshares Corporate Events

Hawthorn Bancshares Announces Quarterly Dividend Increase

On October 29, 2025, Hawthorn Bancshares, Inc. announced a quarterly cash dividend of $0.20 per common share, payable on January 1, 2026. The company reported a significant improvement in its third quarter 2025 financial results, with a net income of $6.1 million, marking a 34.1% increase from the previous year. The bank’s efficiency ratio improved, and it experienced growth in both its loan portfolio and wealth management group. These results reflect Hawthorn Bancshares’ strategic focus on core growth and shareholder value, positioning it strongly within the industry.