📊 HWBK Key Takeaways
Is Hawthorn Bancshares, Inc.. (HWBK) a Good Investment?
Hawthorn Bancshares demonstrates strong fundamentals with impressive 48.2% revenue growth, exceptional profitability margins (24.4% net margin), and a fortress balance sheet with zero long-term debt. However, flat net income YoY despite surging revenues indicates concerning margin compression and potential earnings quality issues that warrant monitoring.
Hawthorn Bancshares exhibits solid core profitability (ROE 13.7%, ROA 1.3%) with strong margins and ample interest coverage, supported by positive free cash generation and a deposit-funded balance sheet. While revenue growth is robust, flat net income suggests near‑term pressure from funding costs or credit provisioning, leaving operating leverage to be realized. If deposit costs stabilize and credit remains benign, earnings durability and efficiency should improve.
Why Buy Hawthorn Bancshares, Inc.. Stock? HWBK Key Strengths
- Outstanding top-line growth at 48.2% YoY with consistent high profitability margins (29.8% operating margin, 24.4% net margin)
- Exceptional balance sheet strength with zero long-term debt, debt-to-equity of 0.00x, and $104.3M cash reserves
- Strong free cash flow generation with $22.8M FCF and 23.4% FCF margin, demonstrating operational efficiency
- Solid interest coverage ratio of 56.5x indicating substantial debt servicing capacity and operational stability
- Healthy profitability (ROE 13.7%, ROA 1.3%) and 24.4% net margin
- Very strong interest coverage (56.5x) indicating resilient earnings capacity
- Positive FCF (23.4% margin) and low balance‑sheet leverage (D/E 0x)
HWBK Stock Risks: Hawthorn Bancshares, Inc.. Investment Risks
- Net income completely flat YoY despite 48% revenue growth signals margin compression and potential earnings quality deterioration from cost inflation or increased competition
- Operating expense growth appears to be outpacing revenue growth, eroding profitability improvements despite strong top-line expansion
- Zero insider activity in last 90 days may suggest management uncertainty or lack of conviction in near-term performance
- Banking sector cyclicality and sensitivity to interest rate environments create macroeconomic headwinds beyond company control
- Flat net income despite strong revenue growth suggests cost or credit pressure
- Rate sensitivity: potential NIM compression as funding costs normalize
- Community bank scale and geographic concentration increase deposit competition risk
Key Metrics to Watch
- Net income growth trajectory and operating margin sustainability amid continued revenue expansion
- Operating expense ratio and cost management efficiency in subsequent quarters
- Free cash flow consistency and capital allocation decisions (dividends, share buybacks, or debt reduction)
- Net interest margin (NIM)
- Credit quality (nonperforming assets/charge‑offs)
Hawthorn Bancshares, Inc.. (HWBK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
HWBK Profit Margin, ROE & Profitability Analysis
HWBK vs Finance Sector: How Hawthorn Bancshares, Inc.. Compares
How Hawthorn Bancshares, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hawthorn Bancshares, Inc.. Stock Overvalued? HWBK Valuation Analysis 2026
Based on fundamental analysis, Hawthorn Bancshares, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hawthorn Bancshares, Inc.. Balance Sheet: HWBK Debt, Cash & Liquidity
HWBK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hawthorn Bancshares, Inc..'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.14 reflects profitable operations.
HWBK Revenue Growth, EPS Growth & YoY Performance
Hawthorn Bancshares, Inc.. Dividends, Buybacks & Capital Allocation
HWBK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hawthorn Bancshares, Inc.. (CIK: 0000893847)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HWBK
What is the AI rating for HWBK?
Hawthorn Bancshares, Inc.. (HWBK) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HWBK's key strengths?
Claude: Outstanding top-line growth at 48.2% YoY with consistent high profitability margins (29.8% operating margin, 24.4% net margin). Exceptional balance sheet strength with zero long-term debt, debt-to-equity of 0.00x, and $104.3M cash reserves. ChatGPT: Healthy profitability (ROE 13.7%, ROA 1.3%) and 24.4% net margin. Very strong interest coverage (56.5x) indicating resilient earnings capacity.
What are the risks of investing in HWBK?
Claude: Net income completely flat YoY despite 48% revenue growth signals margin compression and potential earnings quality deterioration from cost inflation or increased competition. Operating expense growth appears to be outpacing revenue growth, eroding profitability improvements despite strong top-line expansion. ChatGPT: Flat net income despite strong revenue growth suggests cost or credit pressure. Rate sensitivity: potential NIM compression as funding costs normalize.
What is HWBK's revenue and growth?
Hawthorn Bancshares, Inc.. reported revenue of $97.7M.
Does HWBK pay dividends?
Hawthorn Bancshares, Inc.. pays dividends, with $5.4M distributed to shareholders in the trailing twelve months.
Where can I find HWBK SEC filings?
Official SEC filings for Hawthorn Bancshares, Inc.. (CIK: 0000893847) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HWBK's EPS?
Hawthorn Bancshares, Inc.. has a diluted EPS of $3.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HWBK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Hawthorn Bancshares, Inc.. has a BUY rating with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HWBK stock overvalued or undervalued?
Valuation metrics for HWBK: ROE of 13.7% (sector avg: 12%), net margin of 24.4% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy HWBK stock in 2026?
Our dual AI analysis gives Hawthorn Bancshares, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HWBK's free cash flow?
Hawthorn Bancshares, Inc..'s operating cash flow is $26.9M, with capital expenditures of $4.1M. FCF margin is 23.4%.
How does HWBK compare to other Finance stocks?
Vs Finance sector averages: Net margin 24.4% (avg: 25%), ROE 13.7% (avg: 12%), current ratio N/A (avg: 1.2).