HERITAGE FINANCIAL CORP (HFWA) Stock Fundamental Analysis

NASDAQ:HFWA • US42722X1063

27.11 USD
-1.16 (-4.1%)
At close: Feb 23, 2026
27.11 USD
0 (0%)
After Hours: 2/23/2026, 4:24:37 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, HFWA scores 4 out of 10 in our fundamental rating. HFWA was compared to 379 industry peers in the Banks industry. The financial health of HFWA is average, but there are quite some concerns on its profitability. HFWA is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

3

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.
  • In the past 5 years HFWA has always been profitable.
  • Of the past 5 years HFWA 4 years 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

  • Looking at the Return On Assets, with a value of 0.82%, HFWA is in line with its industry, outperforming 41.69% of the companies in the same industry.
  • HFWA has a worse Return On Equity (6.33%) than 70.18% of its industry peers.
Industry RankSector Rank
ROA 0.82%
ROE 6.33%
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 has a Profit Margin of 24.16%. This is comparable to the rest of the industry: HFWA outperforms 48.55% 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) 24.16%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

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.
  • 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.
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

  • HFWA has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
  • The Debt to FCF ratio of HFWA (0.27) is better than 84.70% 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.
  • HFWA's Debt to Equity ratio of 0.02 is amongst the best of the industry. HFWA outperforms 85.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.27
Altman-Z N/A
ROIC/WACCN/A
WACC7.39%
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

7

3. Growth

3.1 Past

  • HFWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.06%, which is quite impressive.
  • The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
  • The Revenue has grown by 13.51% in the past year. This is quite good.
  • Measured over the past years, HFWA shows a small growth in Revenue. The Revenue has been growing by 0.66% on average per year.
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 20.86% on average over the next years. This is a very strong growth
  • HFWA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.03% yearly.
EPS Next Y9.08%
EPS Next 2Y20.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year32%
Revenue Next 2Y19.03%
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.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • HFWA is valuated correctly with a Price/Earnings ratio of 13.83.
  • Based on the Price/Earnings ratio, HFWA is valued a bit more expensive than the industry average as 64.12% of the companies are valued more cheaply.
  • When comparing the Price/Earnings ratio of HFWA to the average of the S&P500 Index (26.99), we can say HFWA is valued slightly cheaper.
  • HFWA is valuated correctly with a Price/Forward Earnings ratio of 12.68.
  • Based on the Price/Forward Earnings ratio, HFWA is valued a bit more expensive than the industry average as 64.38% of the companies are valued more cheaply.
  • When comparing the Price/Forward Earnings ratio of HFWA to the average of the S&P500 Index (28.02), we can say HFWA is valued rather cheaply.
Industry RankSector Rank
PE 13.83
Fwd PE 12.68
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 13.4
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as HFWA's earnings are expected to grow with 20.86% in the coming years.
PEG (NY)1.52
PEG (5Y)1.55
EPS Next 2Y20.86%
EPS Next 3YN/A

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

6

5. Dividend

5.1 Amount

  • HFWA has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.74, HFWA pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, HFWA pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.46%

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
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

  • 56.54% of the earnings are spent on dividend by HFWA. This is a bit on the high side, but may be sustainable.
  • HFWA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP56.54%
EPS Next 2Y20.86%
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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Find the best dividend stocksShow peers with best dividend

HERITAGE FINANCIAL CORP

NASDAQ:HFWA (2/23/2026, 4:24:37 PM)

After market: 27.11 0 (0%)

27.11

-1.16 (-4.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-22
Earnings (Next)04-22
Inst Owners87.68%
Inst Owner Change0.18%
Ins Owners1.57%
Ins Owner Change-0.1%
Market Cap1.12B
Revenue(TTM)246.14M
Net Income(TTM)57.22M
Analysts76.36
Price Target31.37 (15.71%)
Short Float %3.26%
Short Ratio5.39
Dividend
Industry RankSector Rank
Dividend Yield 3.46%
Yearly Dividend0.92
Dividend Growth(5Y)1.86%
DP56.54%
Div Incr Years4
Div Non Decr Years4
Ex-Date01-28
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.87%
Min EPS beat(2)-28.63%
Max EPS beat(2)-1.12%
EPS beat(4)0
Avg EPS beat(4)-17.34%
Min EPS beat(4)-28.63%
Max EPS beat(4)-1.12%
EPS beat(8)1
Avg EPS beat(8)-26.47%
EPS beat(12)2
Avg EPS beat(12)-16.97%
EPS beat(16)6
Avg EPS beat(16)-7.07%
Revenue beat(2)0
Avg Revenue beat(2)-7.03%
Min Revenue beat(2)-12.75%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-7.61%
Min Revenue beat(4)-12.75%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-13.92%
Revenue beat(12)0
Avg Revenue beat(12)-11.02%
Revenue beat(16)3
Avg Revenue beat(16)-7.86%
PT rev (1m)10.61%
PT rev (3m)10.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-4.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)2.32%
Valuation
Industry RankSector Rank
PE 13.83
Fwd PE 12.68
P/S 4.71
P/FCF 13.4
P/OCF 12.75
P/B 1.23
P/tB 1.69
EV/EBITDA N/A
EPS(TTM)1.96
EY7.23%
EPS(NY)2.14
Fwd EY7.89%
FCF(TTM)2.02
FCFY7.46%
OCF(TTM)2.13
OCFY7.84%
SpS5.76
BVpS21.98
TBVpS16.07
PEG (NY)1.52
PEG (5Y)1.55
Graham Number31.13
Profitability
Industry RankSector Rank
ROA 0.82%
ROE 6.33%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 24.16%
GM N/A
FCFM 35.13%
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 Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.27
Debt/EBITDA N/A
Cap/Depr 329.97%
Cap/Sales 1.79%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 145.4%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC7.39%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)58.06%
EPS 3Y-5.33%
EPS 5Y8.9%
EPS Q2Q%91.18%
EPS Next Y9.08%
EPS Next 2Y20.86%
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 Year32%
Revenue Next 2Y19.03%
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 1Y17.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.87%
OCF growth 3YN/A
OCF growth 5YN/A

HERITAGE FINANCIAL CORP / HFWA FAQ

What is the fundamental rating for HFWA stock?

ChartMill assigns a fundamental rating of 4 / 10 to HFWA.


What is the valuation status for HFWA stock?

ChartMill assigns a valuation rating of 3 / 10 to HERITAGE FINANCIAL CORP (HFWA). This can be considered as Overvalued.


Can you provide the profitability details for HERITAGE FINANCIAL CORP?

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


Can you provide the PE and PB ratios for HFWA stock?

The Price/Earnings (PE) ratio for HERITAGE FINANCIAL CORP (HFWA) is 13.83 and the Price/Book (PB) ratio is 1.23.


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 56.54%.