Hawthorn Bancshares (HWBK) AI Stock Analysis

• Market Cap: $231.42M
• Dividend Yield: 2.55%
• Average Volume (3M): 9.65K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.44
• 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: 6,459
• 30 Day Avg. Volume: 9,655
• 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: 1.84
• 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: 73 Outperform
• Price Target: $38.00 ▲(29.21% Upside)

Hawthorn Bancshares receives a solid score driven by strong technical indicators and attractive valuation. However, mixed financial performance, particularly in revenue growth and cash flow, tempers the overall outlook. The stock's bullish momentum and reasonable valuation make it appealing, but potential risks from debt reliance and overbought technical indicators should be monitored.

Positive Factors

Profitability

Strong profitability metrics indicate efficient cost management and the ability to generate significant profit from revenue, which supports long-term financial health.

Return on Equity

A strong return on equity demonstrates effective use of shareholder funds to generate profits, which is a positive indicator of management efficiency and business performance.

Cash Generation

The ability to convert a high percentage of net income into free cash flow suggests robust cash generation, supporting reinvestment and financial flexibility.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can indicate challenges in market expansion or product demand, potentially impacting future earnings and competitive positioning.

Debt Reliance

High reliance on debt can increase financial risk, especially if interest rates rise, potentially affecting the company's ability to finance operations and growth.

Negative Cash Flow Growth

Declining cash flow growth can limit the company's ability to invest in new opportunities and meet financial obligations, posing a risk to long-term sustainability.

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: 29.41
• 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 29.41 is below the 20-day moving average (MA) of 31.45, below the 50-day MA of 30.85, and below the 200-day MA of 29.68, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 73.86 is Negative, neither overbought nor oversold. The STOCH value of 96.03 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
CFFI	74 Outperform	$226.26M	8.64	10.89%	2.65%	8.53%	42.73%
HWBK	73 Outperform	$231.42M	10.51	14.27%	2.55%	0.16%	258.06%
LCNB	70 Outperform	$225.28M	9.54	8.97%	5.51%	5.07%	228.39%
BPRN	70 Outperform	$216.81M	12.50	6.73%	3.62%	12.92%	56.52%
CBNA	70 Outperform	$206.96M	11.02	13.91%	―	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FCCO	65 Neutral	$223.15M	12.13	12.21%	2.14%	11.59%	42.03%

Hawthorn Bancshares Corporate Events

Hawthorn Bancshares Reports Strong Quarterly Earnings

Hawthorn Bancshares, Inc. is a financial institution headquartered in Jefferson City, Missouri, providing a wide array of banking services to individuals and businesses across several Missouri communities, including Jefferson City, Columbia, and the greater Kansas City metropolitan area. The company operates primarily in the banking sector and competes with other financial and non-financial institutions in the region.

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.