HFWA Fundamental Analysis - HERITAGE FINANCIAL CORP

Fundamental Rating

Overall HFWA gets a fundamental rating of 4 out of 10. We evaluated HFWA against 396 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 valued too expensively and it also shows a decent growth rate. HFWA also has an excellent dividend rating.

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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.

In the past 5 years HFWA has always been profitable.

HFWA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

HFWA has a Return On Assets of 0.72%. This is in the lower half of the industry: HFWA underperforms 60.61% of its industry peers.

The Return On Equity of HFWA (5.83%) is worse than 71.97% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.72%
ROE	5.83%
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

The Profit Margin of HFWA (22.77%) is comparable to the rest of the industry.

In the last couple of years the Profit Margin of HFWA has declined.

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)	22.77%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

HFWA has less shares outstanding than it did 5 years ago.

The debt/assets ratio for HFWA is higher compared to a year ago.

2.2 Solvency

HFWA has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.

HFWA's Debt to FCF ratio of 0.33 is amongst the best of the industry. HFWA outperforms 85.10% of its industry peers.

HFWA has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.

HFWA has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. HFWA outperforms 84.85% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.03
Debt/FCF	0.33
Altman-Z	N/A

ROIC/WACCN/A

WACC9.44%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.28% over the past year.

The Earnings Per Share has been decreasing by -7.49% on average over the past years.

HFWA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.65%.

Measured over the past years, HFWA shows a decrease in Revenue. The Revenue has been decreasing by -1.36% on average per year.

EPS 1Y (TTM)11.28%

EPS 3Y-23.13%

EPS 5Y-7.49%

EPS Q2Q%150%

Revenue 1Y (TTM)0.65%

Revenue growth 3Y-3.38%

Revenue growth 5Y-1.36%

Sales Q2Q%18.43%

3.2 Future

HFWA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.45% yearly.

HFWA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.13% yearly.

EPS Next Y61.43%

EPS Next 2Y36.45%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year10.59%

Revenue Next 2Y9.13%

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.

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 15.41, the valuation of HFWA can be described as correct.

HFWA's Price/Earnings ratio is a bit more expensive when compared to the industry. HFWA is more expensive than 72.47% of the companies in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 26.30, HFWA is valued a bit cheaper.

The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of HFWA.

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 22.06, HFWA is valued rather cheaply.

		Industry Rank	Sector Rank
PE	15.41
Fwd PE	9.88

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as HFWA.

		Industry Rank	Sector Rank
P/FCF	11.6
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 36.45% in the coming years.

PEG (NY)0.25

PEG (5Y)N/A

EPS Next 2Y36.45%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.10%, HFWA is a good candidate for dividend investing.

HFWA's Dividend Yield is a higher than the industry average which is at 3.46.

HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.

		Industry Rank	Sector Rank
Dividend Yield	4.1%

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 62.05% of its income as dividend. This is not a sustainable payout ratio.

HFWA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP62.05%

EPS Next 2Y36.45%

EPS Next 3YN/A

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HERITAGE FINANCIAL CORP

NASDAQ:HFWA (6/5/2025, 8:00:01 PM)

After market: 22.81 0 (0%)

22.81

-0.17 (-0.74%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)04-24 2025-04-24/bmo

Earnings (Next)07-23 2025-07-23/bmo

Inst Owners83.38%

Inst Owner Change3.5%

Ins Owners1.39%

Ins Owner Change3.31%

Market Cap778.05M

Analysts75

Price Target27.54 (20.74%)

Short Float %2.91%

Short Ratio3.67

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.1%

Yearly Dividend0.92

Dividend Growth(5Y)1.86%

DP62.05%

Div Incr Years4

Div Non Decr Years4

Ex-Date05-07 2025-05-07 (0.24)

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-19.8%

Min EPS beat(2)-26.58%

Max EPS beat(2)-13.01%

EPS beat(4)1

Avg EPS beat(4)-14.94%

Min EPS beat(4)-26.58%

Max EPS beat(4)0.66%

EPS beat(8)2

Avg EPS beat(8)-21.06%

EPS beat(12)4

Avg EPS beat(12)-12.33%

EPS beat(16)8

Avg EPS beat(16)-0.1%

Revenue beat(2)0

Avg Revenue beat(2)-8.19%

Min Revenue beat(2)-8.55%

Max Revenue beat(2)-7.83%

Revenue beat(4)0

Avg Revenue beat(4)-11.78%

Min Revenue beat(4)-16.74%

Max Revenue beat(4)-7.83%

Revenue beat(8)0

Avg Revenue beat(8)-14.29%

Revenue beat(12)1

Avg Revenue beat(12)-9.5%

Revenue beat(16)4

Avg Revenue beat(16)-7.1%

PT rev (1m)-4.93%

PT rev (3m)-8.78%

EPS NQ rev (1m)0.68%

EPS NQ rev (3m)0.64%

EPS NY rev (1m)-2.73%

EPS NY rev (3m)-2.73%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-0.19%

Revenue NY rev (1m)-0.81%

Revenue NY rev (3m)-0.92%

Valuation

		Industry Rank	Sector Rank
PE	15.41
Fwd PE	9.88
P/S	3.45
P/FCF	11.6
P/OCF	10.98
P/B	0.88
P/tB	1.22
EV/EBITDA	N/A

EPS(TTM)1.48

EY6.49%

EPS(NY)2.31

Fwd EY10.12%

FCF(TTM)1.97

FCFY8.62%

OCF(TTM)2.08

OCFY9.1%

SpS6.62

BVpS25.84

TBVpS18.7

PEG (NY)0.25

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	0.72%
ROE	5.83%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	22.77%
GM	N/A
FCFM	29.72%

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

ROICexcg growth 3YN/A

ROICexcg 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	0.03
Debt/FCF	0.33
Debt/EBITDA	N/A
Cap/Depr	245.6%
Cap/Sales	1.66%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	130.49%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score8

WACC9.44%

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)11.28%

EPS 3Y-23.13%

EPS 5Y-7.49%

EPS Q2Q%150%

EPS Next Y61.43%

EPS Next 2Y36.45%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)0.65%

Revenue growth 3Y-3.38%

Revenue growth 5Y-1.36%

Sales Q2Q%18.43%

Revenue Next Year10.59%

Revenue Next 2Y9.13%

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 1Y-32.21%

FCF growth 3Y-2.83%

FCF growth 5Y-5.14%

OCF growth 1Y-33.75%

OCF growth 3Y-2.48%

OCF growth 5Y-6.96%

HERITAGE FINANCIAL CORP (HFWA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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