📊 HBNC Key Takeaways
Is Horizon Bancorp Inc. /In/ (HBNC) a Good Investment?
Horizon Bancorp exhibits severe operational deterioration masked by headline revenue growth of 58.1%. Diluted EPS collapsed 505% YoY while net income stagnated at 0% growth, indicating fundamental profitability problems. Critical red flags include sub-1.0x interest coverage (0.8x), abysmal returns (ROE 3.7%, ROA 0.4%), and inability to service debt from operating income.
Revenue jumped, but profitability collapsed with deeply negative operating and net margins, negative ROE/ROA, and weak interest coverage—pointing to elevated credit costs and/or impairments and funding pressure. While capitalization appears reasonable and operating cash flow is positive, earnings quality must normalize before fundamentals are attractive.
Why Buy Horizon Bancorp Inc. /In/ Stock? HBNC Key Strengths
- Strong top-line revenue growth of 58.1% YoY
- Conservative leverage with Debt/Equity ratio of 0.36x
- Positive free cash flow of $20.7M with 23.9% FCF margin
- Strong YoY revenue growth (+58%)
- Adequate capitalization (equity ~11% of assets) with modest long-term debt
- Positive operating cash flow and solid FCF margin
HBNC Stock Risks: Horizon Bancorp Inc. /In/ Investment Risks
- Interest coverage ratio of 0.8x indicates inability to cover debt service from operating income
- Diluted EPS declined 505% YoY despite revenue surge, signaling severe earnings deterioration or massive dilution
- Return metrics critically weak (ROE 3.7%, ROA 0.4%) suggesting asset quality issues or operational dysfunction in banking model
- Persistently negative profitability from credit losses/impairments
- Net interest margin pressure from rising deposit/funding costs
- Capital erosion if losses continue and credit quality deteriorates
Key Metrics to Watch
- Interest coverage ratio - must return above 1.5x for viability
- Net income growth trajectory - must align with revenue growth
- Loan loss provisions and nonperforming asset ratios for banking quality assessment
- Provision for credit losses and net charge-offs
- Net interest margin (NIM) and deposit cost/beta
Horizon Bancorp Inc. /In/ (HBNC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.9% 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.
HBNC Profit Margin, ROE & Profitability Analysis
HBNC vs Finance Sector: How Horizon Bancorp Inc. /In/ Compares
How Horizon Bancorp Inc. /In/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Horizon Bancorp Inc. /In/ Stock Overvalued? HBNC Valuation Analysis 2026
Based on fundamental analysis, Horizon Bancorp Inc. /In/ 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.
Horizon Bancorp Inc. /In/ Balance Sheet: HBNC Debt, Cash & Liquidity
HBNC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Horizon Bancorp Inc. /In/'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.64 reflects profitable operations.
HBNC Revenue Growth, EPS Growth & YoY Performance
Horizon Bancorp Inc. /In/ Dividends, Buybacks & Capital Allocation
HBNC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Horizon Bancorp Inc. /In/ (CIK: 0000706129)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HBNC
What is the AI rating for HBNC?
Horizon Bancorp Inc. /In/ (HBNC) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HBNC's key strengths?
Claude: Strong top-line revenue growth of 58.1% YoY. Conservative leverage with Debt/Equity ratio of 0.36x. ChatGPT: Strong YoY revenue growth (+58%). Adequate capitalization (equity ~11% of assets) with modest long-term debt.
What are the risks of investing in HBNC?
Claude: Interest coverage ratio of 0.8x indicates inability to cover debt service from operating income. Diluted EPS declined 505% YoY despite revenue surge, signaling severe earnings deterioration or massive dilution. ChatGPT: Persistently negative profitability from credit losses/impairments. Net interest margin pressure from rising deposit/funding costs.
What is HBNC's revenue and growth?
Horizon Bancorp Inc. /In/ reported revenue of $86.7M.
Does HBNC pay dividends?
Horizon Bancorp Inc. /In/ pays dividends, with $8.2M distributed to shareholders in the trailing twelve months.
Where can I find HBNC SEC filings?
Official SEC filings for Horizon Bancorp Inc. /In/ (CIK: 0000706129) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HBNC's EPS?
Horizon Bancorp Inc. /In/ has a diluted EPS of $0.51.
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 HBNC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Horizon Bancorp Inc. /In/ has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HBNC stock overvalued or undervalued?
Valuation metrics for HBNC: ROE of 3.7% (sector avg: 12%), net margin of 30.2% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy HBNC stock in 2026?
Our dual AI analysis gives Horizon Bancorp Inc. /In/ a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HBNC's free cash flow?
Horizon Bancorp Inc. /In/'s operating cash flow is $20.8M, with capital expenditures of $56.0K. FCF margin is 23.9%.
How does HBNC compare to other Finance stocks?
Vs Finance sector averages: Net margin 30.2% (avg: 25%), ROE 3.7% (avg: 12%), current ratio N/A (avg: 1.2).