📊 HBNC Key Takeaways
Is HBNC a Good Investment? Thesis Analysis
Horizon Bancorp faces a severe profitability crisis with -41.5% net margin and -$201.2M operating loss despite 58% revenue growth, indicating fundamental operational or asset quality deterioration. Catastrophic EPS deterioration (-505% YoY) and negative equity returns (-21.9% ROE) are destroying shareholder value, though positive cash flow and moderate leverage (0.36x) provide temporary financial runway.
Why Buy HBNC? Key Strengths
- Positive operating cash flow of $79.2M and free cash flow of $74.3M despite net losses
- Moderate leverage at 0.36x Debt/Equity provides financial flexibility and borrowing capacity
- Substantial asset base of $6.4B with adequate liquidity of $139.5M in cash equivalents
HBNC Investment Risks to Consider
- Severe profitability collapse with -41.5% net margin and -$150.5M net loss eroding equity base
- Catastrophic EPS deterioration of -505% YoY signals fundamental business breakdown requiring urgent intervention
- Negative interest coverage ratio (-4.8x) indicates inability to service debt from operations; non-cash losses suggest asset quality deterioration typical of banking stress
- Persistent operating losses will rapidly consume equity capital and threaten financial stability if not reversed
Key Metrics to Watch
- Operating margin trajectory and net income path to profitability
- Non-performing loan ratios and loan loss provision trends
- Deposit base stability and funding costs
- Equity capital ratio and minimum regulatory capital maintenance
- Return to positive operating income and normalized margins
HBNC Financial Metrics
💡 AI Analyst Insight
The 20.5% 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 Profitability Ratios
HBNC vs Finance Sector
How HORIZON BANCORP INC /IN/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HBNC Overvalued or Undervalued?
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.
HBNC Balance Sheet & Liquidity
HBNC 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HBNC Capital Allocation
HBNC SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HBNC's key strengths?
Claude: Positive operating cash flow of $79.2M and free cash flow of $74.3M despite net losses. Moderate leverage at 0.36x Debt/Equity provides financial flexibility and borrowing capacity.
What are the risks of investing in HBNC?
Claude: Severe profitability collapse with -41.5% net margin and -$150.5M net loss eroding equity base. Catastrophic EPS deterioration of -505% YoY signals fundamental business breakdown requiring urgent intervention.
What is HBNC's revenue and growth?
HORIZON BANCORP INC /IN/ reported revenue of $362.8M.
Does HBNC pay dividends?
HORIZON BANCORP INC /IN/ pays dividends, with $29.5M 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 $-3.24.
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 April 2026, HORIZON BANCORP INC /IN/ has a STRONG SELL rating with 82% 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 -21.9% (sector avg: 12%), net margin of -41.5% (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 STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HBNC's free cash flow?
HORIZON BANCORP INC /IN/'s operating cash flow is $79.2M, with capital expenditures of $5.0M. FCF margin is 20.5%.
How does HBNC compare to other Finance stocks?
Vs Finance sector averages: Net margin -41.5% (avg: 25%), ROE -21.9% (avg: 12%), current ratio N/A (avg: 1.2).