Hawthorn Bancshares Inc. Common Stock (HWBK)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 14.7% above cost of capital
• Attractive 2.2% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Hawthorn Bancshares Inc. Common Stock is a micro-cap financial services company valued at $237 million. Revenue stands at $81 million. From a quality standpoint, Hawthorn shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.2 warrants caution. On valuation, the stock is attractively valued at 10.1x earnings, with a modest 23% margin of safety vs Graham Number. Growth dynamics show revenue growing at 12.2% and profit growth of 34.5%. The 2.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Hawthorn's consistent 15% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer