Logo image of HTBK

HERITAGE COMMERCE CORP (HTBK) Stock Fundamental Analysis

NASDAQ:HTBK - Nasdaq - US4269271098 - Common Stock - Currency: USD

9.63  -0.07 (-0.72%)

After market: 9.63 0 (0%)

Fundamental Rating

4

HTBK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. Both the profitability and financial health of HTBK have multiple concerns. HTBK is not valued too expensively and it also shows a decent growth rate. HTBK also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

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.
In the past 5 years HTBK has always been profitable.
Of the past 5 years HTBK 4 years had a positive operating cash flow.
HTBK Yearly Net Income VS EBIT VS OCF VS FCFHTBK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

1.2 Ratios

Looking at the Return On Assets, with a value of 0.78%, HTBK is in line with its industry, outperforming 48.99% of the companies in the same industry.
HTBK's Return On Equity of 6.31% is on the low side compared to the rest of the industry. HTBK is outperformed by 65.08% of its industry peers.
Industry RankSector Rank
ROA 0.78%
ROE 6.31%
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
HTBK Yearly ROA, ROE, ROICHTBK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of HTBK (25.39%) is better than 64.07% of its industry peers.
In the last couple of years the Profit Margin of HTBK has declined.
HTBK does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 25.39%
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
HTBK Yearly Profit, Operating, Gross MarginsHTBK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

3

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
HTBK has a better debt/assets ratio than last year.
HTBK Yearly Shares OutstandingHTBK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
HTBK Yearly Total Debt VS Total AssetsHTBK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

The Debt to FCF ratio of HTBK is 2.38, which is a good value as it means it would take HTBK, 2.38 years of fcf income to pay off all of its debts.
HTBK's Debt to FCF ratio of 2.38 is in line compared to the rest of the industry. HTBK outperforms 53.52% of its industry peers.
HTBK has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
HTBK has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. HTBK outperforms 80.90% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 2.38
Altman-Z N/A
ROIC/WACCN/A
WACC13.87%
HTBK Yearly LT Debt VS Equity VS FCFHTBK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HTBK Yearly Current Assets VS Current LiabilitesHTBK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

4

3. Growth

3.1 Past

The earnings per share for HTBK have decreased strongly by -37.14% in the last year.
The Earnings Per Share has been decreasing by -6.01% on average over the past years.
The Revenue for HTBK has decreased by -10.31% in the past year. This is quite bad
Measured over the past years, HTBK shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
EPS 1Y (TTM)-37.14%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%-22.73%
Revenue 1Y (TTM)-10.31%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%4.45%

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 16.07% yearly.
The Revenue is expected to grow by 6.87% on average over the next years.
EPS Next Y22.61%
EPS Next 2Y16.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.68%
Revenue Next 2Y6.87%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
HTBK Yearly Revenue VS EstimatesHTBK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
HTBK Yearly EPS VS EstimatesHTBK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.59, HTBK is valued correctly.
HTBK's Price/Earnings is on the same level as the industry average.
HTBK is valuated rather cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.90, the valuation of HTBK can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as HTBK.
HTBK is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.59
Fwd PE 11.9
HTBK Price Earnings VS Forward Price EarningsHTBK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

78.39% of the companies in the same industry are cheaper than HTBK, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 35.53
EV/EBITDA N/A
HTBK Per share dataHTBK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y16.07%
EPS Next 3YN/A

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.45%, HTBK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.19, HTBK pays a better dividend. On top of this HTBK pays more dividend than 93.22% of the companies listed in the same industry.
HTBK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 5.45%

5.2 History

The dividend of HTBK has a limited annual growth rate of 2.80%.
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)2.8%
Div Incr Years0
Div Non Decr Years11
HTBK Yearly Dividends per shareHTBK Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

73.62% of the earnings are spent on dividend by HTBK. This is not a sustainable payout ratio.
The dividend of HTBK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.62%
EPS Next 2Y16.07%
EPS Next 3YN/A
HTBK Yearly Income VS Free CF VS DividendHTBK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
HTBK Dividend Payout.HTBK Dividend Payout, showing the Payout Ratio.HTBK Dividend Payout.PayoutRetained Earnings

HERITAGE COMMERCE CORP

NASDAQ:HTBK (1/28/2025, 8:00:01 PM)

After market: 9.63 0 (0%)

9.63

-0.07 (-0.72%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-23 2025-01-23/amc
Earnings (Next)N/A N/A
Inst Owners79.72%
Inst Owner Change0.35%
Ins Owners2.38%
Ins Owner Change2.48%
Market Cap590.32M
Analysts81.67
Price Target11.99 (24.51%)
Short Float %1.45%
Short Ratio2.55
Dividend
Industry RankSector Rank
Dividend Yield 5.45%
Yearly Dividend0.52
Dividend Growth(5Y)2.8%
DP73.62%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.64%
Min EPS beat(2)-18.3%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-9.56%
Min EPS beat(4)-18.3%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-6.25%
EPS beat(12)4
Avg EPS beat(12)-3.37%
EPS beat(16)7
Avg EPS beat(16)-2.3%
Revenue beat(2)0
Avg Revenue beat(2)-5.99%
Min Revenue beat(2)-6.29%
Max Revenue beat(2)-5.7%
Revenue beat(4)0
Avg Revenue beat(4)-6.28%
Min Revenue beat(4)-6.9%
Max Revenue beat(4)-5.7%
Revenue beat(8)1
Avg Revenue beat(8)-4.31%
Revenue beat(12)5
Avg Revenue beat(12)-1.18%
Revenue beat(16)8
Avg Revenue beat(16)-0.25%
PT rev (1m)2.17%
PT rev (3m)3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.38%
Valuation
Industry RankSector Rank
PE 14.59
Fwd PE 11.9
P/S 3.47
P/FCF 35.53
P/OCF 31.79
P/B 0.86
P/tB 1.16
EV/EBITDA N/A
EPS(TTM)0.66
EY6.85%
EPS(NY)0.81
Fwd EY8.4%
FCF(TTM)0.27
FCFY2.81%
OCF(TTM)0.3
OCFY3.15%
SpS2.78
BVpS11.18
TBVpS8.33
PEG (NY)0.65
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.78%
ROE 6.31%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 25.39%
GM N/A
FCFM 9.76%
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 RankSector Rank
Debt/Equity 0.06
Debt/FCF 2.38
Debt/EBITDA N/A
Cap/Depr 55.51%
Cap/Sales 1.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 38.42%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score3
WACC13.87%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.14%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%-22.73%
EPS Next Y22.61%
EPS Next 2Y16.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.31%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%4.45%
Revenue Next Year5.68%
Revenue Next 2Y6.87%
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-83.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-82.27%
OCF growth 3YN/A
OCF growth 5YN/A