HERITAGE FINANCIAL CORP (HFWA) Stock Fundamental Analysis
USA - NASDAQ:HFWA - US42722X1063 - Common Stock
24.52 USD
-0.37 (-1.49%)
24.52 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HFWA. HFWA was compared to 392 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.
1. Profitability
1.1 Basic Checks
HFWA had positive earnings in the past year.
HFWA had a positive operating cash flow in the past year.
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
HFWA has a worse Return On Assets (0.70%) than 61.48% of its industry peers.
HFWA has a worse Return On Equity (5.57%) than 73.72% of its industry peers.
| 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
The Profit Margin of HFWA (21.90%) 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) | 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.
Compared to 1 year ago, HFWA has less shares outstanding
The number of shares outstanding for HFWA has been reduced compared to 5 years ago.
HFWA has a worse debt/assets ratio than last year.
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.
The Debt to FCF ratio of HFWA (0.27) is better than 85.20% 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.
With an excellent Debt to Equity ratio value of 0.02, HFWA belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.55%
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 13.49%, which is quite good.
Measured over the past years, HFWA shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.49% on average per year.
The Revenue has been growing slightly by 3.83% in the past year.
The Revenue has been decreasing by -1.36% on average over the past years.
EPS 1Y (TTM)13.49%
EPS 3Y-23.13%
EPS 5Y-7.49%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-3.38%
Revenue growth 5Y-1.36%
Sales Q2Q%10.49%
3.2 Future
HFWA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.33% yearly.
Based on estimates for the next years, HFWA will show a small growth in Revenue. The Revenue will grow by 7.05% on average per year.
EPS Next Y52.48%
EPS Next 2Y37.91%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue Next Year9.34%
Revenue Next 2Y9.3%
Revenue Next 3Y7.05%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.15, HFWA is valued on the expensive side.
HFWA's Price/Earnings ratio is a bit more expensive when compared to the industry. HFWA is more expensive than 73.21% of the companies in the same industry.
HFWA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 10.40, the valuation of HFWA can be described as very reasonable.
HFWA's Price/Forward Earnings ratio is in line with the industry average.
HFWA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, HFWA is valued a bit cheaper than the industry average as 68.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| 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.
HFWA's earnings are expected to grow with 25.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y37.91%
EPS Next 3Y25.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, HFWA has a reasonable but not impressive dividend return.
HFWA's Dividend Yield is a higher than the industry average which is at 3.65.
HFWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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 2Y37.91%
EPS Next 3Y25.33%
24.52
-0.37 (-1.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners86.53%
Inst Owner Change0.66%
Ins Owners1.55%
Ins Owner Change5.07%
Market Cap832.45M
Analysts75
Price Target28.56 (16.48%)
Short Float %2.56%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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%
PT rev (3m)3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.99%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-5.55%
Revenue NQ rev (1m)-1.32%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 10.4 | ||
| P/S | 3.68 | ||
| P/FCF | 10.15 | ||
| P/OCF | 9.62 | ||
| P/B | 0.94 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.43
EY5.83%
EPS(NY)2.36
Fwd EY9.62%
FCF(TTM)2.42
FCFY9.86%
OCF(TTM)2.55
OCFY10.4%
SpS6.66
BVpS26.16
TBVpS18.99
PEG (NY)0.33
PEG (5Y)N/A
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
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 | 0.02 | ||
| 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
WACC7.55%
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)13.49%
EPS 3Y-23.13%
EPS 5Y-7.49%
EPS Q2Q%-12.2%
EPS Next Y52.48%
EPS Next 2Y37.91%
EPS Next 3Y25.33%
EPS Next 5YN/A
Revenue 1Y (TTM)3.83%
Revenue growth 3Y-3.38%
Revenue growth 5Y-1.36%
Sales Q2Q%10.49%
Revenue Next Year9.34%
Revenue Next 2Y9.3%
Revenue Next 3Y7.05%
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%