Hawthorn Bancshares, Inc.: Leading performance but fundamentals not looking strong?

Hawthorn Bancshares, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 25.

Our analysis is based on comparing Hawthorn Bancshares, Inc. with the following peers – Enterprise Financial Services Corp, Great Southern Bancorp, Inc., Ames National Corporation, QCR Holdings, Inc., West Bancorporation, Inc., MidWestOne Financial Group, Inc., Guaranty Federal Bancshares, Inc., UMB Financial Corporation, Commerce Bancshares, Inc. and BNCCorp, Inc. (EFSC-US, GSBC-US, ATLO-US, QCRH-US, WTBA-US, MOFG-US, GFED-US, UMBF-US, CBSH-US and BNCC-US).

Hawthorn Bancshares, Inc. has shown good performance overall, both over the last one year (at 58.38%) as well as over the last month (at 15.04%). Share price performance over the last month, though has been lower than that over the last year. But Hawthorn Bancshares, Inc.’s stock has done better than its overall peer group whose performance was -1.30% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It trades at a lower Price/Book multiple (1.42) than its peer median (1.81).
  • The market expects HWBK-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • HWBK-US has relatively low profit margins and median capital efficiency.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • HWBK-US‘s return on equity has improved from below median to about median among its peers over the last five years.
  • While the company’s lending operations do not seem to benefit from any relative pricing advantage its margins suggest relatively high operating costs.
  • While HWBK-US‘s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s equity capital investment program suggests it is under-investing in a business that is producing peer median returns.
  • Our analysis rates Hawthorn Bancshares, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

HWBK-US‘s share price performance of 58.38% over the last 12 months is above peer median of 38.69%. The 30-day trend in its share price performance of 15.04% is also above the peer median of -1.30% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Hawthorn Bancshares, Inc.’s price of USD 22.95 is lower than CapitalCube’s implied price of USD 27.75. CapitalCube believes that at these levels, Hawthorn Bancshares, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 13.36 and USD 23.15.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Hawthorn Bancshares, Inc. is a bank holding company, which through provides banking services to individual and corporate customers through its Hawthorn bank subsidiary. It offers checking and savings accounts, internet banking, debit cards, certificates of deposit, brokerage services, personal loans, installment loans, trust services, credit related insurance, and safe deposit boxes. The company was founded on October 23, 1992 and is headquartered in Jefferson, MO.

Disclaimer

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