HERITAGE FINANCIAL CORP (HFWA) Fundamental Analysis & Valuation

NASDAQ:HFWA • US42722X1063

Current stock price

26.68 USD
+0.21 (+0.79%)
At close:
26.68 USD
0 (0%)
After Hours:

This HFWA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. HFWA Profitability Analysis

1.1 Basic Checks

  • HFWA had positive earnings in the past year.
  • HFWA had a positive operating cash flow in the past year.
  • HFWA had positive earnings in each of the past 5 years.
  • Each year in the past 5 years HFWA had a positive operating cash flow.
HFWA Yearly Net Income VS EBIT VS OCF VS FCFHFWA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M

1.2 Ratios

  • The Return On Assets of HFWA (0.97%) is comparable to the rest of the industry.
  • HFWA has a Return On Equity of 7.33%. This is in the lower half of the industry: HFWA underperforms 68.68% of its industry peers.
Industry RankSector Rank
ROA 0.97%
ROE 7.33%
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
HFWA Yearly ROA, ROE, ROICHFWA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • HFWA's Profit Margin of 27.44% is fine compared to the rest of the industry. HFWA outperforms 61.32% of its industry peers.
  • In the last couple of years the Profit Margin of HFWA has grown nicely.
  • HFWA 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) 27.44%
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
HFWA Yearly Profit, Operating, Gross MarginsHFWA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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4

2. HFWA Health Analysis

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.
  • Compared to 5 years ago, HFWA has less shares outstanding
  • Compared to 1 year ago, HFWA has a worse debt to assets ratio.
HFWA Yearly Shares OutstandingHFWA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
HFWA Yearly Total Debt VS Total AssetsHFWA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • The Debt to FCF ratio of HFWA is 0.26, which is an excellent value as it means it would take HFWA, only 0.26 years of fcf income to pay off all of its debts.
  • HFWA has a better Debt to FCF ratio (0.26) than 87.11% of its industry peers.
  • A Debt/Equity ratio of 0.02 indicates that HFWA is not too dependend on debt financing.
  • The Debt to Equity ratio of HFWA (0.02) is better than 86.32% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.26
Altman-Z N/A
ROIC/WACCN/A
WACC8.17%
HFWA Yearly LT Debt VS Equity VS FCFHFWA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HFWA Yearly Current Assets VS Current LiabilitesHFWA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. HFWA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 58.06% over the past year.
  • 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.
  • The Revenue has grown by 13.51% in the past year. This is quite good.
  • The Revenue has been growing slightly by 0.66% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 23.07% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 22.16% on average over the next years. This is a very strong growth
EPS Next Y15.11%
EPS Next 2Y23.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38.4%
Revenue Next 2Y22.16%
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.
HFWA Yearly Revenue VS EstimatesHFWA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
HFWA Yearly EPS VS EstimatesHFWA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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4

4. HFWA Valuation Analysis

4.1 Price/Earnings Ratio

  • HFWA is valuated correctly with a Price/Earnings ratio of 13.61.
  • Based on the Price/Earnings ratio, HFWA is valued a bit more expensive than the industry average as 62.63% of the companies are valued more cheaply.
  • HFWA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.21.
  • HFWA is valuated reasonably with a Price/Forward Earnings ratio of 11.82.
  • HFWA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HFWA is more expensive than 61.32% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.10. HFWA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.61
Fwd PE 11.82
HFWA Price Earnings VS Forward Price EarningsHFWA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Price/Free Cash Flow ratio as HFWA.
Industry RankSector Rank
P/FCF 12.81
EV/EBITDA N/A
HFWA Per share dataHFWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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 23.07% in the coming years.
PEG (NY)0.9
PEG (5Y)1.53
EPS Next 2Y23.07%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HFWA Dividend Analysis

5.1 Amount

  • HFWA has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.73, HFWA pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, HFWA pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.81%

5.2 History

  • The dividend of HFWA has a limited annual growth rate of 3.83%.
  • HFWA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.83%
Div Incr Years0
Div Non Decr Years0
HFWA Yearly Dividends per shareHFWA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HFWA pays out 48.35% of its income as dividend. 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.
DP48.35%
EPS Next 2Y23.07%
EPS Next 3YN/A
HFWA Yearly Income VS Free CF VS DividendHFWA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
HFWA Dividend Payout.HFWA Dividend Payout, showing the Payout Ratio.HFWA Dividend Payout.PayoutRetained Earnings

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HFWA Fundamentals: All Metrics, Ratios and Statistics

HERITAGE FINANCIAL CORP

NASDAQ:HFWA (4/7/2026, 9:41:43 PM)

After market: 26.68 0 (0%)

26.68

+0.21 (+0.79%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-22
Earnings (Next)04-23
Inst Owners73.04%
Inst Owner Change0%
Ins Owners1.28%
Ins Owner Change0.19%
Market Cap1.10B
Revenue(TTM)246.14M
Net Income(TTM)67.53M
Analysts75
Price Target32.03 (20.05%)
Short Float %4.36%
Short Ratio5.32
Dividend
Industry RankSector Rank
Dividend Yield 3.81%
Yearly Dividend0.96
Dividend Growth(5Y)3.83%
DP48.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-28
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.27%
Min EPS beat(2)-1.12%
Max EPS beat(2)13.66%
EPS beat(4)1
Avg EPS beat(4)-7.28%
Min EPS beat(4)-28.63%
Max EPS beat(4)13.66%
EPS beat(8)2
Avg EPS beat(8)-17.12%
EPS beat(12)3
Avg EPS beat(12)-15.74%
EPS beat(16)6
Avg EPS beat(16)-7.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-6.05%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-10.39%
Revenue beat(12)0
Avg Revenue beat(12)-11.06%
Revenue beat(16)2
Avg Revenue beat(16)-7.96%
PT rev (1m)0%
PT rev (3m)12.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.73%
Valuation
Industry RankSector Rank
PE 13.61
Fwd PE 11.82
P/S 4.46
P/FCF 12.81
P/OCF 11.57
P/B 1.19
P/tB 1.62
EV/EBITDA N/A
EPS(TTM)1.96
EY7.35%
EPS(NY)2.26
Fwd EY8.46%
FCF(TTM)2.08
FCFY7.81%
OCF(TTM)2.31
OCFY8.64%
SpS5.98
BVpS22.4
TBVpS16.5
PEG (NY)0.9
PEG (5Y)1.53
Graham Number31.43
Profitability
Industry RankSector Rank
ROA 0.97%
ROE 7.33%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 27.44%
GM N/A
FCFM 34.8%
ROA(3y)0.81%
ROA(5y)0.99%
ROE(3y)6.53%
ROE(5y)8.26%
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-5.87%
PM growth 5Y7%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.26
Debt/EBITDA N/A
Cap/Depr 779.9%
Cap/Sales 3.72%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 126.85%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC8.17%
ROIC/WACCN/A
Cap/Depr(3y)472.37%
Cap/Depr(5y)332.08%
Cap/Sales(3y)3.19%
Cap/Sales(5y)2.49%
Profit Quality(3y)142.82%
Profit Quality(5y)121.35%
High Growth Momentum
Growth
EPS 1Y (TTM)58.06%
EPS 3Y-5.33%
EPS 5Y8.9%
EPS Q2Q%91.18%
EPS Next Y15.11%
EPS Next 2Y23.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.51%
Revenue growth 3Y-0.38%
Revenue growth 5Y0.66%
Sales Q2Q%16.29%
Revenue Next Year38.4%
Revenue Next 2Y22.16%
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 1Y40.38%
FCF growth 3Y-1.79%
FCF growth 5Y6.23%
OCF growth 1Y47.05%
OCF growth 3Y0.13%
OCF growth 5Y6.16%

HERITAGE FINANCIAL CORP / HFWA Fundamental Analysis 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 4 / 10 to HERITAGE FINANCIAL CORP (HFWA). This can be considered as Fairly Valued.


How profitable is HERITAGE FINANCIAL CORP (HFWA) stock?

HERITAGE FINANCIAL CORP (HFWA) has a profitability rating of 3 / 10.


How financially healthy is HERITAGE FINANCIAL CORP?

The financial health rating of HERITAGE FINANCIAL CORP (HFWA) is 4 / 10.


Is the dividend of HERITAGE FINANCIAL CORP sustainable?

The dividend rating of HERITAGE FINANCIAL CORP (HFWA) is 6 / 10 and the dividend payout ratio is 48.35%.