Financial Services • OTC
According to Zyberno, Hills Bancorporation (HBIA) shows a Value Trap signal — AVERAGE BUSINESS (53/100) with an apparent Margin of Safety of +43.3%, but a Brina Gap of -2.8% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, Hills Bancorporation (HBIA) trades at $46.65 against an estimated intrinsic value per share of $82.31 — a +43.3% Margin of Safety based on Owner Earnings of $72.69M TTM, projected at 10.2% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -2.8% weakens the case: based on the company's ROIC (9.0%) and reinvestment rate (1.7%), the business can fundamentally grow at 0.2% — but the current enterprise value implies the market expects 2.9%. This places HBIA in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 23.5% annually.
Over the trailing twelve months, HBIA generated $72.69M in Owner Earnings. Capital was deployed as follows: $3.13M returned via share buybacks, $10.81M paid as dividends, $3.82M invested in capital expenditures. Reinvestment rate: 1.7%. Owner Earnings have grown at 10.2% annually over the trailing five years using log-linear regression.