Hills Bancorporation (HBIA) Fair Value & Analysis

Financial Services · US · Market cap $432M

A solid business, screening 90% undervalued on our models.

What matters now

• The price is below even our cautious bear case ($67.14). The market is more pessimistic than our downside scenario.
• Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 26, 2026.

How to read this chart

60‑month range $16.20 – $99.01 · fair‑value band $67.14 – $111.91 · the $47.09 price screens below the $89.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 26, 2026.

Full chart & analysis →

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Analysis

Hills Bancorporation (HBIA) currently trades at $47.09, while our model-based Fair Value estimate is $89.52, implying the stock looks roughly 90.1% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hills Bancorporation generated revenue of $174M at a net margin of 39.1%. Revenue grew 33.8% year over year. It earns a return on equity of 13.1%. Net debt stands at $611M. Fundamentals as of Jul 26, 2026

Our scenario range runs from $67.14 (bear case) to $111.91 (bull case); at $47.09, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 52% below its 52-week high and 32% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 90%, HBIA screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($90.01) versus Dividend Discount ($14.84). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Hills Bancorporation operates as the bank holding company for Hills Bank and Trust Company that provides commercial banking in the state of Iowa.

Full company description

Hills Bancorporation operates as the bank holding company for Hills Bank and Trust Company that provides commercial banking in the state of Iowa. It accepts various deposits, such as demand, savings, and time deposits; and offers products, including real estate loans comprising residential, multi-family, and commercial real estate loans; mortgage and construction loans; commercial and financial loans; agricultural loans; and automobile, installment, and other consumer loans. The company also maintains night and safe deposit facilities; and provides collection, exchange, and other banking services. In addition, it administers estates, personal trusts, and pension plans; offers farm management, investment advisory, and custodial services for individuals, corporations, and nonprofit organizations; and originates mortgages that are sold in the secondary residential real estate market without mortgage servicing rights being retained. The company operates through its main office and its full-service branches in the Iowa counties of Johnson, Linn, and Washington. It serves individuals, businesses, governmental units, and institutional customers. The company was founded in 1904 and is headquartered in Hills, Iowa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hills Bancorporation reported revenue of $257M in FY2025 versus $156M in FY2021, a compound +13.4%/yr. Reported net income was $60.5M in FY2025, compounding +5.9%/yr from FY2021.

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Peer Group

Banks - Regional · 1081 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Banks - Regional median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.