HERITAGE FINANCIAL CORP (HFWA) Stock Fundamental Analysis
USA - NASDAQ:HFWA - US42722X1063 - Common Stock
22.89 USD
-0.09 (-0.39%)
Overall HFWA gets a fundamental rating of 4 out of 10. We evaluated HFWA against 391 industry peers in the Banks industry. HFWA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HFWA has a correct valuation and a medium growth rate. Finally HFWA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HFWA was profitable.
HFWA had a positive operating cash flow in the past year.
HFWA had positive earnings in each of the past 5 years.
HFWA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.70%, HFWA is doing worse than 61.64% of the companies in the same industry.
The Return On Equity of HFWA (5.57%) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 5.57% | ||
| ROIC | N/A |
ROA(3y)0.88%
ROA(5y)0.93%
ROE(3y)7.5%
ROE(5y)7.93%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HFWA has a Profit Margin (21.90%) which is in line with its industry peers.
HFWA's Profit Margin has declined in the last couple of years.
HFWA 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) | 21.9% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-21.2%
PM growth 5Y-7.25%
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.
Compared to 1 year ago, HFWA has less shares outstanding
The number of shares outstanding for HFWA has been reduced compared to 5 years ago.
HFWA has a worse debt/assets ratio than last year.
2.2 Solvency
HFWA has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.27, HFWA belongs to the best of the industry, outperforming 84.40% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that HFWA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, HFWA belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.33%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HFWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.49%, which is quite good.
The Earnings Per Share has been decreasing by -7.49% on average over the past years.
Looking at the last year, HFWA shows a small growth in Revenue. The Revenue has grown by 3.83% in the last year.
The Revenue has been decreasing by -1.36% on average over the past years.
EPS 1Y (TTM)13.49%
EPS 3Y-23.13%
EPS 5Y-7.49%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-3.38%
Revenue growth 5Y-1.36%
Sales Q2Q%10.49%
3.2 Future
Based on estimates for the next years, HFWA will show a very strong growth in Earnings Per Share. The EPS will grow by 25.33% on average per year.
The Revenue is expected to grow by 12.68% on average over the next years. This is quite good.
EPS Next Y52.48%
EPS Next 2Y37.91%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue Next Year9.34%
Revenue Next 2Y14.81%
Revenue Next 3Y12.68%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.01 indicates a correct valuation of HFWA.
Based on the Price/Earnings ratio, HFWA is valued a bit more expensive than 72.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of HFWA to the average of the S&P500 Index (27.57), we can say HFWA is valued slightly cheaper.
The Price/Forward Earnings ratio is 9.71, which indicates a very decent valuation of HFWA.
HFWA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.09. HFWA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HFWA is valued a bit cheaper than 70.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HFWA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HFWA's earnings are expected to grow with 25.33% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y37.91%
EPS Next 3Y25.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, HFWA is a good candidate for dividend investing.
HFWA's Dividend Yield is a higher than the industry average which is at 3.55.
HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of HFWA has a limited annual growth rate of 1.86%.
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)1.86%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
HFWA pays out 64.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HFWA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.92%
EPS Next 2Y37.91%
EPS Next 3Y25.33%
NASDAQ:HFWA (10/23/2025, 3:24:31 PM)
22.89
-0.09 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.1%
Inst Owner Change0.06%
Ins Owners1.55%
Ins Owner Change2.21%
Market Cap777.12M
Revenue(TTM)225.94M
Net Income(TTM)49.48M
Analysts75
Price Target28.97 (26.56%)
Short Float %2.86%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend0.92
Dividend Growth(5Y)1.86%
DP64.92%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.82%
Min EPS beat(2)-28.63%
Max EPS beat(2)-13.01%
EPS beat(4)0
Avg EPS beat(4)-22.26%
Min EPS beat(4)-28.63%
Max EPS beat(4)-13.01%
EPS beat(8)2
Avg EPS beat(8)-24.44%
EPS beat(12)3
Avg EPS beat(12)-15.78%
EPS beat(16)7
Avg EPS beat(16)-6.44%
Revenue beat(2)0
Avg Revenue beat(2)-10.65%
Min Revenue beat(2)-12.75%
Max Revenue beat(2)-8.55%
Revenue beat(4)0
Avg Revenue beat(4)-11.47%
Min Revenue beat(4)-16.74%
Max Revenue beat(4)-7.83%
Revenue beat(8)0
Avg Revenue beat(8)-14.11%
Revenue beat(12)1
Avg Revenue beat(12)-10.42%
Revenue beat(16)3
Avg Revenue beat(16)-7.98%
PT rev (1m)1.43%
PT rev (3m)5.19%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 9.71 | ||
| P/S | 3.44 | ||
| P/FCF | 9.47 | ||
| P/OCF | 8.98 | ||
| P/B | 0.87 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.43
EY6.25%
EPS(NY)2.36
Fwd EY10.3%
FCF(TTM)2.42
FCFY10.56%
OCF(TTM)2.55
OCFY11.14%
SpS6.66
BVpS26.16
TBVpS18.99
PEG (NY)0.31
PEG (5Y)N/A
Graham Number29.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 5.57% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 21.9% | ||
| GM | N/A | ||
| FCFM | 36.31% |
ROA(3y)0.88%
ROA(5y)0.93%
ROE(3y)7.5%
ROE(5y)7.93%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-21.2%
PM growth 5Y-7.25%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 321.67% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 165.83% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.33%
ROIC/WACCN/A
Cap/Depr(3y)261.13%
Cap/Depr(5y)215.76%
Cap/Sales(3y)2.49%
Cap/Sales(5y)2.33%
Profit Quality(3y)137.35%
Profit Quality(5y)123.16%
High Growth Momentum
Growth
EPS 1Y (TTM)13.49%
EPS 3Y-23.13%
EPS 5Y-7.49%
EPS Q2Q%-12.2%
EPS Next Y52.48%
EPS Next 2Y37.91%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-3.38%
Revenue growth 5Y-1.36%
Sales Q2Q%10.49%
Revenue Next Year9.34%
Revenue Next 2Y14.81%
Revenue Next 3Y12.68%
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-17.71%
FCF growth 3Y-2.83%
FCF growth 5Y-5.14%
OCF growth 1Y-19.86%
OCF growth 3Y-2.48%
OCF growth 5Y-6.96%