Hawthorn Bancshares (HWBK) AI Stock Analysis

• Market Cap: $195.60M
• Dividend Yield: 2.73%
• Average Volume (3M): 39.47K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.55
• Revenue Growth: 2.03%
• EPS Growth: 390.37%
• Country: US
• Employees: 255
• Sector: Financial
• Sector Strength: 69
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 6,931,301
• 10 Day Avg. Volume: 11,030
• 30 Day Avg. Volume: 39,473
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 18.42
• 1Y Price Target: $31.00
• Price Target Upside: 9.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $32.00 ▲(13.39%Upside)

Hawthorn Bancshares scores a solid 74, driven by strong financial performance and positive corporate events. The company's stable profitability, efficient cash flow management, and attractive valuation metrics underpin its financial health. While technical analysis presents a neutral view, the recent dividend increase and improved financial performance highlight management's effective strategy and resilience, adding confidence to the stock's outlook.

Hawthorn Bancshares Business Overview & Revenue Model

Company Description

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides commercial and personal banking services. It accepts checking, savings, money market, individual retirement, and other time deposit accounts; and certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. The company operates through 23 banking offices in Missouri communities, Jefferson City, Columbia, Clinton, Warsaw, Springfield, St. Louis, and the greater Kansas City metropolitan area. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.

How the Company Makes Money

Hawthorn Bancshares generates revenue primarily through its banking and financial services operations. Key revenue streams include interest income from loans and other lending activities, which comprise a significant portion of the company's earnings. Additionally, the bank earns money through non-interest income sources, such as service charges on deposit accounts, fees from trust and investment services, and income from mortgage banking activities. The company may also benefit from strategic partnerships with other financial institutions or service providers to enhance its product offerings and market reach. Factors such as interest rate fluctuations, economic conditions, and market demand for financial services can significantly influence the company's revenue.

Hawthorn Bancshares Financial Statement Overview

Summary

Hawthorn Bancshares demonstrates strong financial performance with substantial revenue and net income growth. The balance sheet indicates moderate leverage, which is typical for the banking industry but poses potential risks during market fluctuations. Cash flow metrics are strong, highlighting effective cash management. Overall, the company appears well-positioned for continued growth.

Income Statement

Hawthorn Bancshares experienced significant revenue growth over the past year, with a growth rate of 38.05% from 2023 to 2024. The net profit margin improved from 1.81% to 25.03%, indicating enhanced profitability. However, EBIT and EBITDA margins are not calculable due to zero values, which could suggest accounting adjustments or operational challenges.

Balance Sheet

The company's debt-to-equity ratio is 0.89, indicating a moderate level of leverage. The return on equity (ROE) improved to 12.2%, showing effective utilization of equity. The equity ratio is 8.19%, suggesting a low reliance on equity financing, which is typical for banks but could pose risks in volatile markets.

Cash Flow

Free cash flow grew by 45.58% from 2023 to 2024, reflecting strong cash generation. The operating cash flow to net income ratio is 1.40, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.24, showcasing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.85M	71.88M	52.79M	72.73M	75.08M	67.97M
Gross Profit	82.52M	70.86M	52.79M	72.73M	75.08M	67.97M
EBITDA	19.14M	24.01M	2.54M	25.09M	30.50M	0.00
Net Income	19.18M	18.26M	956.00K	20.75M	22.52M	14.29M
Balance Sheet
Total Assets	1.88B	1.83B	1.88B	1.92B	1.83B	1.73B
Cash, Cash Equivalents and Short-Term Investments	234.06M	270.65M	282.19M	337.38M	475.97M	226.64M
Total Debt	176.61M	132.69M	157.70M	149.02M	152.57M	158.30M
Total Liabilities	1.73B	1.68B	1.74B	1.80B	1.68B	1.60B
Stockholders Equity	153.41M	149.55M	136.09M	127.41M	148.96M	130.59M
Cash Flow
Free Cash Flow	22.99M	22.59M	15.51M	17.71M	29.62M	19.19M
Operating Cash Flow	25.72M	25.59M	17.61M	20.28M	20.55M	21.02M
Investing Cash Flow	8.24M	1.25M	54.19M	-206.53M	-127.53M	-139.56M
Financing Cash Flow	24.79M	-69.30M	-62.07M	110.07M	76.87M	220.79M

Hawthorn Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWBK, the sentiment is Negative. The current price of 28.22 is below the 20-day moving average (MA) of 29.03, below the 50-day MA of 28.90, and below the 200-day MA of 29.13, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HWBK.

Hawthorn Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VABK	76 Outperform	$197.35M	11.07	11.01%	3.69%	2.41%	14.29%
FVCB	76 Outperform	$224.71M	11.27	8.69%	0.48%	17.89%	351.71%
HWBK	74 Outperform	$195.60M	9.53	14.00%	2.73%	2.03%	390.37%
FINW	72 Outperform	$233.24M	18.09	7.56%	―	13.75%	-14.44%
OPOF	72 Outperform	$203.54M	23.40	7.59%	1.40%	1.57%	21.30%
Sector *	67 Neutral	$17.01B	11.59	9.13%	3.95%	10.67%	1.30%
BLFY	57 Neutral	$182.24M	―	-3.41%	―	7.69%	-28.95%

Hawthorn Bancshares Corporate Events

Hawthorn Bancshares Announces Quarterly Dividend Increase

On July 30, 2025, Hawthorn Bancshares, Inc. announced a quarterly cash dividend of $0.20 per common share, payable on October 1, 2025. The company reported a significant improvement in its financial performance for the second quarter of 2025, with net income rising by 31.8% to $6.1 million compared to the same quarter in 2024. The efficiency ratio improved, and the net interest margin increased to 3.89%. Despite a decrease in loans and deposits, the company maintained strong credit quality and capital levels, reflecting a strategic focus on managing net interest margins and controlling expenses.

Hawthorn Bancshares Announces New Stock Repurchase Program

On June 3, 2025, Hawthorn Bancshares, Inc. held its Annual Meeting of Shareholders, where approximately 64.05% of the company’s common stock was represented. Shareholders elected four Class III directors, ratified the appointment of Forvis Mazars, LLP as the independent registered public accounting firm, and approved executive compensation. On June 5, 2025, the company announced a new common stock repurchase program, authorizing the repurchase of up to $10 million in market value of its common stock, replacing the prior program. The repurchased shares will be held in treasury for general corporate purposes, with the program having no termination date and being subject to market conditions.