📊 HWBK Key Takeaways
Is HWBK a Good Investment? Thesis Analysis
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.
Why Buy 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
HWBK Investment Risks to Consider
- 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
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)
HWBK Financial Metrics
💡 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 Profitability Ratios
HWBK vs Finance Sector
How HAWTHORN BANCSHARES, INC. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HWBK Overvalued or Undervalued?
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.
HWBK Balance Sheet & Liquidity
HWBK 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HWBK Capital Allocation
HWBK SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 72% 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.
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.
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 72% 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).