HERITAGE FINANCIAL CORP (HFWA) Stock Fundamental Analysis
USA - NASDAQ:HFWA - US42722X1063 - Common Stock
21.47 USD
-0.75 (-3.38%)
21.47 USD
0 (0%)
HFWA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 388 industry peers in the Banks industry. The financial health of HFWA is average, but there are quite some concerns on its profitability. HFWA has a correct valuation and a medium growth rate. HFWA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HFWA was profitable.
In the past year HFWA had a positive cash flow from operations.
Each year in the past 5 years HFWA has been profitable.
Each year in the past 5 years HFWA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.70%, HFWA is doing worse than 63.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.57%, HFWA is doing worse than 74.74% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 21.90%, HFWA is in line with its industry, outperforming 40.72% of the companies in the same industry.
In the last couple of years the Profit Margin of HFWA has declined.
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) | 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.
HFWA has less shares outstanding than it did 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.
HFWA has a better Debt to FCF ratio (0.27) than 84.54% of its industry peers.
HFWA has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HFWA (0.02) is better than 84.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.28%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.78% over the past year.
The Earnings Per Share has been decreasing by -7.49% on average over the past years.
The Revenue has grown by 12.51% in the past year. This is quite good.
The Revenue has been decreasing by -1.36% on average over the past years.
EPS 1Y (TTM)52.78%
EPS 3Y-23.13%
EPS 5Y-7.49%
EPS Q2Q%66.67%
Revenue 1Y (TTM)12.51%
Revenue growth 3Y-3.38%
Revenue growth 5Y-1.36%
Sales Q2Q%33.1%
3.2 Future
HFWA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.24% yearly.
HFWA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.68% yearly.
EPS Next Y54.12%
EPS Next 2Y34.56%
EPS Next 3Y31.24%
EPS Next 5YN/A
Revenue Next Year8.85%
Revenue Next 2Y18.82%
Revenue Next 3Y12.68%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HFWA is valuated correctly with a Price/Earnings ratio of 13.01.
Compared to the rest of the industry, the Price/Earnings ratio of HFWA indicates a slightly more expensive valuation: HFWA is more expensive than 62.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. HFWA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of HFWA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HFWA is on the same level as its industry peers.
HFWA is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
HFWA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HFWA is cheaper than 70.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.88 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as HFWA's earnings are expected to grow with 31.24% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y34.56%
EPS Next 3Y31.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.32%, HFWA is a good candidate for dividend investing.
HFWA's Dividend Yield is rather good when compared to the industry average which is at 3.39. HFWA pays more dividend than 81.96% of the companies in the same industry.
HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
64.92% of the earnings are spent on dividend by HFWA. 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 2Y34.56%
EPS Next 3Y31.24%
21.47
-0.75 (-3.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners87.1%
Inst Owner Change1.61%
Ins Owners1.55%
Ins Owner Change0.31%
Market Cap728.91M
Revenue(TTM)236.84M
Net Income(TTM)49.48M
Analysts75
Price Target28.76 (33.95%)
Short Float %2.89%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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)-0.7%
PT rev (3m)0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)1.08%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 9.56 | ||
| P/S | 3.23 | ||
| P/FCF | 8.88 | ||
| P/OCF | 8.42 | ||
| P/B | 0.82 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.65
EY7.69%
EPS(NY)2.25
Fwd EY10.46%
FCF(TTM)2.42
FCFY11.26%
OCF(TTM)2.55
OCFY11.88%
SpS6.66
BVpS26.16
TBVpS18.99
PEG (NY)0.24
PEG (5Y)N/A
Graham Number31.17
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
WACC7.28%
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)52.78%
EPS 3Y-23.13%
EPS 5Y-7.49%
EPS Q2Q%66.67%
EPS Next Y54.12%
EPS Next 2Y34.56%
EPS Next 3Y31.24%
EPS Next 5YN/A
Revenue 1Y (TTM)12.51%
Revenue growth 3Y-3.38%
Revenue growth 5Y-1.36%
Sales Q2Q%33.1%
Revenue Next Year8.85%
Revenue Next 2Y18.82%
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%
HERITAGE FINANCIAL CORP / HFWA FAQ
What is the fundamental rating for HFWA stock?
ChartMill assigns a fundamental rating of 4 / 10 to HFWA.
Can you provide the valuation status for HERITAGE FINANCIAL CORP?
ChartMill assigns a valuation rating of 5 / 10 to HERITAGE FINANCIAL CORP (HFWA). This can be considered as Fairly Valued.
What is the profitability of HFWA stock?
HERITAGE FINANCIAL CORP (HFWA) has a profitability rating of 2 / 10.
What are the PE and PB ratios of HERITAGE FINANCIAL CORP (HFWA) stock?
The Price/Earnings (PE) ratio for HERITAGE FINANCIAL CORP (HFWA) is 13.01 and the Price/Book (PB) ratio is 0.82.
How sustainable is the dividend of HERITAGE FINANCIAL CORP (HFWA) stock?
The dividend rating of HERITAGE FINANCIAL CORP (HFWA) is 7 / 10 and the dividend payout ratio is 64.92%.