25.81 USD
+0.33 (+1.3%)
At close: Jan 30, 2026
25.9 USD
+0.09 (+0.35%)
After Hours: 1/30/2026, 8:00:02 PM
HFWA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 383 industry peers in the Banks industry. While HFWA seems to be doing ok healthwise, there are quite some concerns on its profitability. HFWA is not priced too expensively while it is growing strongly. Keep and eye on this one! Finally HFWA also has an excellent dividend rating.
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.
- Each year in the past 5 years HFWA has been profitable.
- Of the past 5 years HFWA 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.82%, HFWA is in line with its industry, outperforming 43.08% of the companies in the same industry.
- HFWA has a worse Return On Equity (6.33%) than 69.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 6.33% | ||
| ROIC | N/A |
ROA(3y)0.81%
ROA(5y)0.99%
ROE(3y)6.53%
ROE(5y)8.26%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- HFWA has a Profit Margin of 24.16%. This is comparable to the rest of the industry: HFWA outperforms 48.83% of its industry peers.
- HFWA's Profit Margin has improved 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) | 24.16% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.87%
PM growth 5Y7%
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 remains at a similar level compared to 1 year ago.
- The number of shares outstanding for HFWA has been reduced compared to 5 years ago.
- The debt/assets ratio for HFWA is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of HFWA is 0.27, which is an excellent value as it means it would take HFWA, only 0.27 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.27, HFWA belongs to the top of the industry, outperforming 84.60% of the companies in the same industry.
- HFWA has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
- HFWA has a better Debt to Equity ratio (0.02) than 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.41%
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 58.06%, which is quite impressive.
- Measured over the past years, HFWA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
- HFWA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.51%.
- HFWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.66% yearly.
EPS 1Y (TTM)58.06%
EPS 3Y-5.33%
EPS 5Y8.9%
EPS Q2Q%91.18%
Revenue 1Y (TTM)13.51%
Revenue growth 3Y-0.38%
Revenue growth 5Y0.66%
Sales Q2Q%16.29%
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 19.39% on average per year.
- Based on estimates for the next years, HFWA will show a quite strong growth in Revenue. The Revenue will grow by 19.03% on average per year.
EPS Next Y11.78%
EPS Next 2Y19.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year32.1%
Revenue Next 2Y19.03%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.17, the valuation of HFWA can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of HFWA is on the same level as its industry peers.
- HFWA is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.78, the valuation of HFWA can be described as very reasonable.
- HFWA's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HFWA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, HFWA is valued a bit cheaper than the industry average as 65.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HFWA's earnings are expected to grow with 19.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)1.48
EPS Next 2Y19.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- HFWA has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
- HFWA's Dividend Yield is rather good when compared to the industry average which is at 2.67. HFWA pays more dividend than 80.68% of the companies in the same industry.
- HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
- The dividend of HFWA has a limited annual growth rate of 1.86%.
- HFWA has been paying a dividend for at least 10 years, so it has 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
- 56.54% of the earnings are spent on dividend by HFWA. This is a bit on the high side, but may be sustainable.
- The dividend of HFWA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.54%
EPS Next 2Y19.39%
EPS Next 3YN/A
HERITAGE FINANCIAL CORP / HFWA FAQ
What is the fundamental rating for HFWA stock?
ChartMill assigns a fundamental rating of 5 / 10 to HFWA.
What is the valuation status for HFWA stock?
ChartMill assigns a valuation rating of 5 / 10 to HERITAGE FINANCIAL CORP (HFWA). This can be considered as Fairly Valued.
Can you provide the profitability details for HERITAGE FINANCIAL CORP?
HERITAGE FINANCIAL CORP (HFWA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for HFWA stock?
The Price/Earnings (PE) ratio for HERITAGE FINANCIAL CORP (HFWA) is 13.17 and the Price/Book (PB) ratio is 0.97.
Is the dividend of HERITAGE FINANCIAL CORP sustainable?
The dividend rating of HERITAGE FINANCIAL CORP (HFWA) is 7 / 10 and the dividend payout ratio is 56.54%.