HERITAGE FINANCIAL CORP (HFWA)
US42722X1063 - Common Stock
Taking everything into account, HFWA scores 4 out of 10 in our fundamental rating. HFWA was compared to 405 industry peers in the Banks industry. The financial health of HFWA is average, but there are quite some concerns on its profitability. While showing a medium growth rate, HFWA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
HFWA had positive earnings in the past year.
In the past year HFWA had a positive cash flow from operations.
In the past 5 years HFWA has always been profitable.
Each year in the past 5 years HFWA had a positive operating cash flow.
1.2 Ratios
HFWA has a worse Return On Assets (0.53%) than 70.35% of its industry peers.
Looking at the Return On Equity, with a value of 4.30%, HFWA is doing worse than 78.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 4.3% | ||
| ROIC | N/A |
ROA(3y)1.12%
ROA(5y)1.05%
ROE(3y)9.66%
ROE(5y)8.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HFWA's Profit Margin of 17.84% is on the low side compared to the rest of the industry. HFWA is outperformed by 66.58% of its industry peers.
HFWA's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for HFWA so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 17.84% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.99%
PM growth 5Y0.95%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HFWA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HFWA has been reduced compared to 1 year ago.
Compared to 5 years ago, HFWA has less shares outstanding
HFWA has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HFWA is 0.31, which is an excellent value as it means it would take HFWA, only 0.31 years of fcf income to pay off all of its debts.
HFWA has a Debt to FCF ratio of 0.31. This is amongst the best in the industry. HFWA outperforms 86.68% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that HFWA is not too dependend on debt financing.
HFWA has a better Debt to Equity ratio (0.03) than 85.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.05%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HFWA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.13%.
Measured over the past 5 years, HFWA shows a small growth in Earnings Per Share. The EPS has been growing by 0.82% on average per year.
The Revenue for HFWA has decreased by -19.89% in the past year. This is quite bad
The Revenue has been growing slightly by 2.21% on average over the past years.
EPS 1Y (TTM)-51.13%
EPS 3Y10.99%
EPS 5Y0.82%
EPS Q2Q%-35.29%
Revenue 1Y (TTM)-19.89%
Revenue growth 3Y0.78%
Revenue growth 5Y2.21%
Sales Q2Q%-20.24%
3.2 Future
Based on estimates for the next years, HFWA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.97% on average per year.
Based on estimates for the next years, HFWA will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y-21.22%
EPS Next 2Y5.68%
EPS Next 3Y8.97%
EPS Next 5YN/A
Revenue Next Year-7.31%
Revenue Next 2Y0.71%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.56, which indicates a rather expensive current valuation of HFWA.
Compared to the rest of the industry, the Price/Earnings ratio of HFWA indicates a rather expensive valuation: HFWA more expensive than 80.65% of the companies listed in the same industry.
HFWA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 12.47, the valuation of HFWA can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as HFWA.
HFWA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HFWA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)27.53
EPS Next 2Y5.68%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, HFWA has a reasonable but not impressive dividend return.
HFWA's Dividend Yield is a higher than the industry average which is at 3.29.
HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of HFWA has a limited annual growth rate of 2.66%.
HFWA has paid a dividend for at least 10 years, which is a reliable track record.
HFWA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
84.13% of the earnings are spent on dividend by HFWA. This is not a sustainable payout ratio.
HFWA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP84.13%
EPS Next 2Y5.68%
EPS Next 3Y8.97%
HERITAGE FINANCIAL CORP
NASDAQ:HFWA (1/14/2025, 8:00:01 PM)
After market: 24.37 0 (0%)24.37
+1.11 (+4.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.18%
Inst Owner Change0%
Ins Owners1.46%
Ins Owner Change-0.41%
Market Cap832.24M
Analysts75
Price Target28.56 (17.19%)
Short Float %1.4%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Dividend Growth(5Y)2.66%
DP84.13%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.09%
Min EPS beat(2)-20.83%
Max EPS beat(2)0.66%
EPS beat(4)1
Avg EPS beat(4)-35.61%
Min EPS beat(4)-61.19%
Max EPS beat(4)0.66%
EPS beat(8)2
Avg EPS beat(8)-16.78%
EPS beat(12)6
Avg EPS beat(12)-3.65%
EPS beat(16)10
Avg EPS beat(16)6.93%
Revenue beat(2)0
Avg Revenue beat(2)-15.37%
Min Revenue beat(2)-16.74%
Max Revenue beat(2)-14%
Revenue beat(4)0
Avg Revenue beat(4)-20.22%
Min Revenue beat(4)-29.76%
Max Revenue beat(4)-14%
Revenue beat(8)0
Avg Revenue beat(8)-12.73%
Revenue beat(12)3
Avg Revenue beat(12)-7.94%
Revenue beat(16)5
Avg Revenue beat(16)-5.88%
PT rev (1m)10.24%
PT rev (3m)15.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 12.47 | ||
| P/S | 3.95 | ||
| P/FCF | 11.71 | ||
| P/OCF | 11.12 | ||
| P/B | 0.95 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.08
EY4.43%
EPS(NY)1.95
Fwd EY8.02%
FCF(TTM)2.08
FCFY8.54%
OCF(TTM)2.19
OCFY8.99%
SpS6.16
BVpS25.61
TBVpS18.45
PEG (NY)N/A
PEG (5Y)27.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 4.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 17.84% | ||
| GM | N/A | ||
| FCFM | 33.75% |
ROA(3y)1.12%
ROA(5y)1.05%
ROE(3y)9.66%
ROE(5y)8.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.99%
PM growth 5Y0.95%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.31 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 206.16% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 189.13% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.05%
ROIC/WACCN/A
Cap/Depr(3y)223.19%
Cap/Depr(5y)187.98%
Cap/Sales(3y)2.38%
Cap/Sales(5y)3.14%
Profit Quality(3y)112.95%
Profit Quality(5y)118.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-51.13%
EPS 3Y10.99%
EPS 5Y0.82%
EPS Q2Q%-35.29%
EPS Next Y-21.22%
EPS Next 2Y5.68%
EPS Next 3Y8.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.89%
Revenue growth 3Y0.78%
Revenue growth 5Y2.21%
Sales Q2Q%-20.24%
Revenue Next Year-7.31%
Revenue Next 2Y0.71%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.09%
FCF growth 3Y16.12%
FCF growth 5Y10.87%
OCF growth 1Y-7.98%
OCF growth 3Y15.91%
OCF growth 5Y5.84%