HERITAGE COMMERCE CORP (HTBK)
US4269271098 - Common Stock
We assign a fundamental rating of 3 out of 10 to HTBK. HTBK was compared to 406 industry peers in the Banks industry. Both the profitability and financial health of HTBK have multiple concerns. HTBK does not seem to be growing, but still is valued expensively. Finally HTBK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HTBK was profitable.
HTBK had a positive operating cash flow in the past year.
Each year in the past 5 years HTBK has been profitable.
In the past 5 years HTBK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.78%, HTBK is in line with its industry, outperforming 49.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.31%, HTBK is doing worse than 64.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 6.31% | ||
| ROIC | N/A |
ROA(3y)1.13%
ROA(5y)1.03%
ROE(3y)9.36%
ROE(5y)8.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HTBK (25.39%) is better than 64.11% of its industry peers.
In the last couple of years the Profit Margin of HTBK has grown nicely.
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) | 25.39% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y12.97%
PM growth 5Y4.56%
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
The debt/assets ratio for HTBK has been reduced compared to a year ago.
2.2 Solvency
HTBK has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as HTBK would need 2.38 years to pay back of all of its debts.
The Debt to FCF ratio of HTBK (2.38) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.06 indicates that HTBK is not too dependend on debt financing.
HTBK's Debt to Equity ratio of 0.06 is amongst the best of the industry. HTBK outperforms 81.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.92%
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 -39.32% in the last year.
HTBK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.81% yearly.
HTBK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.91%.
Measured over the past years, HTBK shows a small growth in Revenue. The Revenue has been growing by 7.87% on average per year.
EPS 1Y (TTM)-39.32%
EPS 3Y12.37%
EPS 5Y4.81%
EPS Q2Q%-32%
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y8.19%
Revenue growth 5Y7.87%
Sales Q2Q%-12.03%
3.2 Future
HTBK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.83% yearly.
The Revenue is expected to decrease by -0.75% on average over the next years.
EPS Next Y-35.89%
EPS Next 2Y-17.54%
EPS Next 3Y-7.83%
EPS Next 5YN/A
Revenue Next Year-13.19%
Revenue Next 2Y-4.49%
Revenue Next 3Y-0.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.51, HTBK is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HTBK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HTBK to the average of the S&P500 Index (27.73), we can say HTBK is valued rather cheaply.
HTBK is valuated correctly with a Price/Forward Earnings ratio of 13.43.
Based on the Price/Forward Earnings ratio, HTBK is valued a bit more expensive than the industry average as 63.86% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.83. HTBK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 13.43 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HTBK is valued a bit more expensive than the industry average as 76.73% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.39 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HTBK's earnings are expected to decrease with -7.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.81
EPS Next 2Y-17.54%
EPS Next 3Y-7.83%
5. Dividend
5.1 Amount
HTBK has a Yearly Dividend Yield of 5.02%, which is a nice return.
Compared to an average industry Dividend Yield of 3.02, HTBK pays a better dividend. On top of this HTBK pays more dividend than 92.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, HTBK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
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
5.3 Sustainability
HTBK pays out 73.62% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of HTBK has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP73.62%
EPS Next 2Y-17.54%
EPS Next 3Y-7.83%
HERITAGE COMMERCE CORP
NASDAQ:HTBK (12/20/2024, 8:17:16 PM)
After market: 9.59 0 (0%)9.59
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners77.69%
Inst Owner Change-2.16%
Ins Owners3.79%
Ins Owner Change1.18%
Market Cap587.87M
Analysts81.67
Price Target11.73 (22.31%)
Short Float %1.6%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Dividend Growth(5Y)2.8%
DP73.62%
Div Incr Years0
Div Non Decr Years11
Ex-Date
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)1.47%
PT rev (3m)-0.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 13.43 | ||
| P/S | 3.45 | ||
| P/FCF | 35.39 | ||
| P/OCF | 31.65 | ||
| P/B | 0.86 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.71
EY7.4%
EPS(NY)0.71
Fwd EY7.45%
FCF(TTM)0.27
FCFY2.83%
OCF(TTM)0.3
OCFY3.16%
SpS2.78
BVpS11.18
TBVpS8.33
PEG (NY)N/A
PEG (5Y)2.81
Profitability
| Industry Rank | Sector 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)1.13%
ROA(5y)1.03%
ROE(3y)9.36%
ROE(5y)8.24%
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 3Y12.97%
PM growth 5Y4.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.03
Health
| Industry Rank | Sector 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-Score4
WACC13.92%
ROIC/WACCN/A
Cap/Depr(3y)24.78%
Cap/Depr(5y)29.43%
Cap/Sales(3y)0.48%
Cap/Sales(5y)0.73%
Profit Quality(3y)111.02%
Profit Quality(5y)122.05%
High Growth Momentum
Growth
EPS 1Y (TTM)-39.32%
EPS 3Y12.37%
EPS 5Y4.81%
EPS Q2Q%-32%
EPS Next Y-35.89%
EPS Next 2Y-17.54%
EPS Next 3Y-7.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.91%
Revenue growth 3Y8.19%
Revenue growth 5Y7.87%
Sales Q2Q%-12.03%
Revenue Next Year-13.19%
Revenue Next 2Y-4.49%
Revenue Next 3Y-0.75%
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-72.04%
FCF growth 3Y9.63%
FCF growth 5Y8.08%
OCF growth 1Y-69.13%
OCF growth 3Y8.41%
OCF growth 5Y8.49%