Hawthorn Bancshares (HWBK) AI Stock Analysis

• Market Cap: $209.73M
• Dividend Yield: 2.57%
• Average Volume (3M): 8.13K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.57
• Revenue Growth: 2.03%
• EPS Growth: 390.32%
• Country: US
• Employees: 255
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.88
• Shares Outstanding: 6,905,968
• 10 Day Avg. Volume: 6,222
• 30 Day Avg. Volume: 8,134
• 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: 1.77
• Enterprise Value/Revenue: 3.40
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 13.67
• 1Y Price Target: $35.00
• Price Target Upside: 15.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $35.00 ▲(15.25% Upside)

Hawthorn Bancshares scores well due to its stable financial performance and attractive valuation. The technical analysis supports a positive outlook with bullish momentum. However, concerns about declining revenue growth and cash flow, along with reliance on debt, slightly temper the overall score.

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 interest income derived from loans, including commercial loans, consumer loans, and real estate mortgages. Additionally, the company earns non-interest income from various fees associated with banking services such as account maintenance fees, transaction fees, and service charges. The bank's investment portfolio also contributes to its earnings through interest and dividends. Furthermore, Hawthorn Bancshares may engage in strategic partnerships with local businesses and organizations to enhance its service offerings and expand its customer base, which can lead to increased revenue streams. Overall, the company's financial performance is closely tied to the local economic conditions and the demand for banking services in its operational areas.

Hawthorn Bancshares Financial Statement Overview

Summary

Hawthorn Bancshares presents a strong overall financial position with solid profitability, efficient cash flow management, and a balanced leverage strategy. The income statement reveals consistent revenue growth and robust margins. While the balance sheet displays a moderate leverage ratio, it maintains a stable position typical of the regional banking sector. Cash flow metrics further enhance the company's financial health, indicating ample liquidity and operational efficiency.

Income Statement

Hawthorn Bancshares demonstrates a solid income statement with consistent revenue growth over recent years. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 66.67%, indicating efficient cost management. The net profit margin stands at 17.52%, reflecting strong profitability. Revenue growth from 2023 to 2024 was significant at approximately 24.65%, showcasing robust top-line expansion. EBIT and EBITDA margins are healthy, at 21.49% and 23.06% respectively, displaying operational efficiency. Overall, the income statement reflects stability and growth, with strong profitability metrics.

Balance Sheet

The balance sheet of Hawthorn Bancshares shows a moderate debt-to-equity ratio of approximately 1.15, indicating a balanced leverage position. The return on equity (ROE) for the TTM (Trailing-Twelve-Months) is 12.50%, which is commendable. The equity ratio is around 8.14%, suggesting a heavier reliance on liabilities over equity, typical for banks. Overall, the balance sheet is stable, with a prudent leverage strategy but a relatively low equity base which could pose risks in downturns.

Cash Flow

The cash flow statement highlights strong free cash flow growth, with the TTM (Trailing-Twelve-Months) free cash flow improving by 2.24% from the previous annual period. The operating cash flow to net income ratio is 1.34, indicating effective conversion of income into cash. The free cash flow to net income ratio stands at 1.20, further confirming strong cash generation capabilities. Overall, cash flow management appears robust, supporting the company's financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.43M	109.67M	87.96M	83.22M	81.39M	78.02M
Gross Profit	75.02M	71.88M	52.79M	73.63M	77.18M	62.50M
EBITDA	27.20M	24.01M	2.54M	27.23M	30.50M	19.74M
Net Income	20.66M	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	233.29M	270.65M	282.19M	337.38M	468.85M	226.64M
Total Debt	192.48M	132.69M	157.70M	154.21M	152.57M	203.45M
Total Liabilities	1.72B	1.68B	1.74B	1.80B	1.68B	1.60B
Stockholders Equity	156.82M	149.55M	136.09M	127.41M	148.96M	130.59M
Cash Flow
Free Cash Flow	19.70M	22.59M	15.51M	17.71M	29.62M	19.19M
Operating Cash Flow	22.55M	25.59M	17.61M	20.28M	30.21M	21.02M
Investing Cash Flow	816.00K	1.25M	54.19M	-206.53M	-127.53M	-139.56M
Financing Cash Flow	1.09M	-69.30M	-62.07M	110.07M	76.87M	220.79M

Hawthorn Bancshares Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.37
• 50DMA: Negative
• 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 HWBK, the sentiment is Neutral. The current price of 30.37 is below the 20-day moving average (MA) of 31.41, below the 50-day MA of 30.66, and above the 200-day MA of 29.59, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 23.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HWBK.

Hawthorn Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBNA	80 Outperform	$210.35M	9.76	17.07%	―	―	―
LCNB	73 Outperform	$212.50M	10.03	8.28%	5.87%	14.84%	169.99%
HWBK	71 Outperform	$209.73M	10.26	14.00%	2.57%	2.03%	390.32%
CFFI	68 Neutral	$219.07M	8.95	10.67%	2.69%	11.71%	32.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FCCO	67 Neutral	$210.65M	12.31	11.85%	2.22%	16.07%	57.29%
BPRN	57 Neutral	$209.79M	32.99	2.70%	3.86%	16.39%	-72.87%

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.