NasdaqGS:HWBK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$144.4m

Last Updated

2021/06/21 01:10 UTC

Data Sources

Company Financials

Executive Summary

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in Missouri. More Details

Rewards

Trading at 18.7% below our estimate of its fair value

Earnings grew by 56.4% over the past year

Pays a reliable dividend of 2.64%

Risk Analysis

No risks detected for HWBK from our risk checks.


Snowflake Analysis

Solid track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Hawthorn Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HWBK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HWBK's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

HWBK

-7.6%

US Banks

-1.9%

US Market


1 Year Return

17.1%

HWBK

50.6%

US Banks

38.2%

US Market

Return vs Industry: HWBK underperformed the US Banks industry which returned 50.6% over the past year.

Return vs Market: HWBK underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

HWBKIndustryMarket
7 Day-4.7%-7.6%-1.9%
30 Day-3.6%-9.2%1.0%
90 Day8.1%-1.4%3.8%
1 Year20.0%17.1%55.0%50.6%40.4%38.2%
3 Year19.8%12.4%21.2%10.8%57.5%47.8%
5 Year113.4%94.6%106.1%80.0%127.2%101.7%

Long-Term Price Volatility Vs. Market

How volatile is Hawthorn Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hawthorn Bancshares undervalued compared to its fair value and its price relative to the market?

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HWBK ($21.83) is trading below our estimate of fair value ($26.86)

Significantly Below Fair Value: HWBK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HWBK is good value based on its PE Ratio (7.6x) compared to the US Banks industry average (11.6x).

PE vs Market: HWBK is good value based on its PE Ratio (7.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HWBK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HWBK's PB Ratio (1.1x) is in line with the US Banks industry average.


Future Growth

How is Hawthorn Bancshares forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hawthorn Bancshares has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Hawthorn Bancshares performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWBK has high quality earnings.

Growing Profit Margin: HWBK's current net profit margins (27.7%) are higher than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: HWBK's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: HWBK's earnings growth over the past year (56.4%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: HWBK earnings growth over the past year (56.4%) exceeded the Banks industry 20.7%.


Return on Equity

High ROE: HWBK's Return on Equity (14.7%) is considered low.


Financial Health

How is Hawthorn Bancshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HWBK's Assets to Equity ratio (13.3x) is moderate.

Allowance for Bad Loans: HWBK has a low allowance for bad loans (54%).

Low Risk Liabilities: 87% of HWBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: HWBK has an appropriate level of Loans to Assets ratio (73%).

Low Risk Deposits: HWBK's Loans to Deposits ratio (90%) is appropriate.

Level of Bad Loans: HWBK has a high level of bad loans (2.7%).


Dividend

What is Hawthorn Bancshares's current dividend yield, its reliability and sustainability?

2.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HWBK's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: HWBK's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: HWBK's dividends per share have been stable in the past 10 years.

Growing Dividend: HWBK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.9%), HWBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average board tenure


CEO

David Turner (63 yo)

10.42yrs

Tenure

US$711,256

Compensation

Mr. David T. Turner has been the Chairman and Chief Executive Officer of Hawthorn Bancshares, Inc. (formerly, Exchange National Bancshares Inc.) since January 1, 2011. Mr. Turner has been the President of ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD711.26K) is above average for companies of similar size in the US market ($USD532.73K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: HWBK's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HWBK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hawthorn Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hawthorn Bancshares, Inc.
  • Ticker: HWBK
  • Exchange: NasdaqGS
  • Founded: 1865
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$144.449m
  • Shares outstanding: 6.62m
  • Website: https://www.hawthornbancshares.com

Number of Employees


Location

  • Hawthorn Bancshares, Inc.
  • 132 East High Street
  • Box 688
  • Jefferson City
  • Missouri
  • 65102
  • United States

Listings


Biography

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in Missouri. It offers checking and savings accounts, and certificates of deposit; de...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 01:10
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.