HERITAGE FINANCIAL CORP (HFWA)
US42722X1063 - Common Stock
Overall HFWA gets a fundamental rating of 4 out of 10. We evaluated HFWA against 411 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 valuation in line with the averages, but on the other hand it scores bad on growth. 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.
In the past 5 years HFWA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HFWA (0.86%) is comparable to the rest of the industry.
HFWA's Return On Equity of 7.24% is on the low side compared to the rest of the industry. HFWA is outperformed by 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 7.24% | ||
| ROIC | N/A |
ROA(3y)1.12%
ROA(5y)1.05%
ROE(3y)9.66%
ROE(5y)8.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HFWA's Profit Margin of 25.33% is in line compared to the rest of the industry. HFWA outperforms 57.42% of its industry peers.
In the last couple of years the Profit Margin of HFWA has remained more or less at the same level.
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) | 25.33% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.99%
PM growth 5Y0.95%
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.
Compared to 5 years ago, HFWA has less shares outstanding
HFWA has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HFWA is 0.22, which is an excellent value as it means it would take HFWA, only 0.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.22, HFWA belongs to the top of the industry, outperforming 85.89% of the companies in the same industry.
HFWA has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
HFWA's Debt to Equity ratio of 0.03 is amongst the best of the industry. HFWA outperforms 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.77%
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 HFWA have decreased strongly by -24.24% in the last year.
The Earnings Per Share has been growing slightly by 0.82% on average over the past years.
HFWA shows a decrease in Revenue. In the last year, the revenue decreased by -2.07%.
HFWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-24.24%
EPS 3Y10.99%
EPS 5Y0.82%
EPS growth Q2Q-71.87%
Revenue 1Y (TTM)-2.07%
Revenue growth 3Y0.78%
Revenue growth 5Y2.21%
Revenue growth Q2Q-27.21%
3.2 Future
HFWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.41% yearly.
The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y-0.4%
EPS Next 2Y5.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.96%
Revenue Next 2Y1.75%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.21, which indicates a very decent valuation of HFWA.
HFWA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of HFWA to the average of the S&P500 Index (24.92), we can say HFWA is valued rather cheaply.
A Price/Forward Earnings ratio of 10.25 indicates a reasonable 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 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
75.91% of the companies in the same industry are more expensive than HFWA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)12.46
EPS Next 2Y5.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.94%, HFWA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.81, HFWA pays a bit more dividend than its industry peers.
HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
The dividend of HFWA has a limited annual growth rate of 2.66%.
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)2.66%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
HFWA pays out 49.90% 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.
DP49.9%
EPS Next 2Y5.41%
EPS Next 3YN/A
HERITAGE FINANCIAL CORP
NASDAQ:HFWA (4/26/2024, 7:00:02 PM)
After market: 17.87 0 (0%)17.87
-0.22 (-1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap619.37M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 10.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)12.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 7.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 25.33% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.24%
EPS 3Y10.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.07%
Revenue growth 3Y0.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y