HERITAGE COMMERCE CORP (HTBK) Stock Fundamental Analysis
NASDAQ:HTBK - Nasdaq - US4269271098 - Common Stock - Currency: USD
Taking everything into account, HTBK scores 4 out of 10 in our fundamental rating. HTBK was compared to 398 industry peers in the Banks industry. HTBK has a bad profitability rating. Also its financial health evaluation is rather negative. HTBK has a decent growth rate and is not valued too expensively. Finally HTBK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HTBK had positive earnings in the past year.
In the past year HTBK had a positive cash flow from operations.
HTBK had positive earnings in each of the past 5 years.
Each year in the past 5 years HTBK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.72%, HTBK is in line with its industry, outperforming 41.21% of the companies in the same industry.
HTBK has a worse Return On Equity (5.88%) than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.88% | ||
| ROIC | N/A |
ROA(3y)1.08%
ROA(5y)0.98%
ROE(3y)8.66%
ROE(5y)8.01%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HTBK's Profit Margin of 23.51% is in line compared to the rest of the industry. HTBK outperforms 51.26% of its industry peers.
HTBK's Profit Margin has declined in the last couple of years.
HTBK does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 23.51% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.43%
PM growth 5Y-3.79%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HTBK does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HTBK has been increased compared to 1 year ago.
Compared to 5 years ago, HTBK has more shares outstanding
Compared to 1 year ago, HTBK has an improved debt to assets ratio.
2.2 Solvency
HTBK has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
HTBK has a better Debt to FCF ratio (1.06) than 70.35% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that HTBK is not too dependend on debt financing.
HTBK has a Debt to Equity ratio of 0.06. This is in the better half of the industry: HTBK outperforms 79.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.69%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for HTBK have decreased strongly by -25.27% in the last year.
HTBK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.01% yearly.
The Revenue for HTBK has decreased by -10.31% in the past year. This is quite bad
The Revenue has been growing slightly by 3.96% on average over the past years.
EPS 1Y (TTM)-25.27%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-10.31%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%14.88%
3.2 Future
HTBK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.62% yearly.
HTBK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.09% yearly.
EPS Next Y22.35%
EPS Next 2Y15.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.64%
Revenue Next 2Y9.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.22, the valuation of HTBK can be described as correct.
60.05% of the companies in the same industry are cheaper than HTBK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HTBK to the average of the S&P500 Index (28.87), we can say HTBK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.19, the valuation of HTBK can be described as reasonable.
HTBK's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. HTBK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
62.06% of the companies in the same industry are cheaper than HTBK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HTBK's earnings are expected to grow with 15.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y15.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HTBK has a Yearly Dividend Yield of 5.80%, which is a nice return.
Compared to an average industry Dividend Yield of 3.53, HTBK pays a better dividend. On top of this HTBK pays more dividend than 91.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, HTBK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
5.2 History
The dividend of HTBK has a limited annual growth rate of 3.29%.
HTBK has been paying a dividend for at least 10 years, so it has a reliable track record.
HTBK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.29%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
78.61% of the earnings are spent on dividend by HTBK. This is not a sustainable payout ratio.
HTBK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.61%
EPS Next 2Y15.62%
EPS Next 3YN/A
NASDAQ:HTBK (4/29/2025, 11:14:45 AM)
8.99
+0.07 (+0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.02%
Inst Owner Change-0.58%
Ins Owners2.25%
Ins Owner Change4.15%
Market Cap553.87M
Analysts85
Price Target11.82 (31.48%)
Short Float %1.99%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.8% |
Yearly Dividend0.52
Dividend Growth(5Y)3.29%
DP78.61%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.47%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-7.99%
Min EPS beat(4)-18.3%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-6.31%
EPS beat(12)3
Avg EPS beat(12)-3.87%
EPS beat(16)6
Avg EPS beat(16)-2.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-6.29%
Max Revenue beat(2)4.36%
Revenue beat(4)1
Avg Revenue beat(4)-3.47%
Min Revenue beat(4)-6.29%
Max Revenue beat(4)4.36%
Revenue beat(8)1
Avg Revenue beat(8)-4.22%
Revenue beat(12)5
Avg Revenue beat(12)-1.12%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)-1.42%
PT rev (3m)-1.42%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)16.13%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)11.5%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)8.6%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)7.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 10.19 | ||
| P/S | 3.21 | ||
| P/FCF | 14.83 | ||
| P/OCF | 14.21 | ||
| P/B | 0.8 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.68
EY7.56%
EPS(NY)0.88
Fwd EY9.81%
FCF(TTM)0.61
FCFY6.74%
OCF(TTM)0.63
OCFY7.04%
SpS2.8
BVpS11.2
TBVpS8.37
PEG (NY)0.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.51% | ||
| GM | N/A | ||
| FCFM | 21.66% |
ROA(3y)1.08%
ROA(5y)0.98%
ROE(3y)8.66%
ROE(5y)8.01%
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 3Y-8.43%
PM growth 5Y-3.79%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 46.02% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 92.15% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC17.69%
ROIC/WACCN/A
Cap/Depr(3y)38.07%
Cap/Depr(5y)37.52%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.89%
Profit Quality(3y)102.19%
Profit Quality(5y)115.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.27%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%11.76%
EPS Next Y22.35%
EPS Next 2Y15.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.31%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%14.88%
Revenue Next Year13.64%
Revenue Next 2Y9.09%
Revenue Next 3YN/A
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-47.65%
FCF growth 3Y-12.94%
FCF growth 5Y-5.72%
OCF growth 1Y-46.62%
OCF growth 3Y-11.83%
OCF growth 5Y-4.99%