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HBT Financial (HBT) Profit Margin Tops Forecasts, Reinforcing Value-Focused Narrative

Simply Wall St·10/21/2025 05:23:40
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HBT Financial (HBT) reported a net profit margin of 33.4%, up from last year’s 32.5%, with five-year average annual earnings growth of 11.7%. However, recent momentum has slowed, as earnings grew by 7.4% over the past year and future forecasts point to modest revenue growth of 3.3% per year, trailing the broader US market’s 10.1% pace. Despite headwinds for future earnings, the stock’s price-to-earnings ratio of 10.1x is lower than both the industry and peer averages. Shares currently trade well below the estimated fair value, keeping sentiment constructive for investors focused on value.

See our full analysis for HBT Financial.

Next up, we’ll see how these results compare with the most widely watched narratives. We will look at both where the stories align and where market expectations might get challenged.

Curious how numbers become stories that shape markets? Explore Community Narratives

NasdaqGS:HBT Revenue & Expenses Breakdown as at Oct 2025
NasdaqGS:HBT Revenue & Expenses Breakdown as at Oct 2025

Profit Margin Clocks In Above Sector Norms

  • Net profit margin reached 33.4%, topping last year’s 32.5% and remaining robust even as wider sector peers typically post lower ratios.
  • Steady margins align with the prevailing view that HBT is seen as a stable player.
    • Analysts note the high margin, combined with a five-year average annual earnings growth of 11.7%, which cements HBT's reputation for operational consistency.
    • What stands out is that even though sector challenges persist, the company’s ability to maintain strong profitability numbers has bolstered its appeal as a lower-risk option within its regional banking group.

Growth Projections Trail the Broader Market

  • Revenue is forecast to rise at just 3.3% per year, considerably slower than the broader US market’s 10.1% annual growth pace.
  • Prevailing interpretations in the AI-generated narrative highlight that
    • slower revenue and a slight projected earnings decline of -0.3% per year temper prospects for outperformance, especially when set against broader market benchmarks.
    • The narrative points to HBT’s disciplined focus and sector resilience, but also stresses how restrained top-line growth may limit enthusiasm among investors seeking outsized returns.

Discounted Valuation Signals Potential Upside

  • Shares trade at a price-to-earnings ratio of 10.1x, below both the US Banks industry average of 11.2x and a peer group average of 10.5x, and well under the DCF fair value of $58.86.
  • Market watchers readily point out that
    • the significant discount to estimated fair value is a key reason for positive sentiment around HBT, especially for investors who prioritize valuation over near-term growth rates.
    • Combined with high-quality historical earnings, the current price of $24.58 could make HBT appealing to those seeking value-driven, stable investments rather than momentum plays.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on HBT Financial's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

HBT’s muted revenue outlook and restrained earnings growth may hold back investors looking for faster-rising returns than the sector can offer.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.