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HERITAGE COMMERCE CORP (HTBK) Stock Fundamental Analysis

NASDAQ:HTBK - Nasdaq - US4269271098 - Common Stock - Currency: USD

10.69  +0.12 (+1.14%)

After market: 10.69 0 (0%)

Fundamental Rating

4

HTBK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 395 industry peers in the Banks industry. Both the profitability and financial health of HTBK have multiple concerns. HTBK has a correct valuation and a medium growth rate. HTBK also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

HTBK had positive earnings in the past year.
In the past year HTBK had a positive cash flow from operations.
HTBK had positive earnings in each of the past 5 years.
In the past 5 years HTBK always reported a positive cash flow from operatings.
HTBK Yearly Net Income VS EBIT VS OCF VS FCFHTBK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

1.2 Ratios

The Return On Assets of HTBK (0.78%) is comparable to the rest of the industry.
The Return On Equity of HTBK (6.21%) is worse than 68.10% of its industry peers.
Industry RankSector Rank
ROA 0.78%
ROE 6.21%
ROIC N/A
ROA(3y)1.08%
ROA(5y)0.98%
ROE(3y)8.66%
ROE(5y)8.01%
ROIC(3y)N/A
ROIC(5y)N/A
HTBK Yearly ROA, ROE, ROICHTBK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of HTBK (24.52%) is comparable to the rest of the industry.
HTBK's Profit Margin has declined in the last couple of years.
HTBK 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) 24.52%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.07%
PM growth 5Y-3.57%
GM growth 3YN/A
GM growth 5YN/A
HTBK Yearly Profit, Operating, Gross MarginsHTBK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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3

2. Health

2.1 Basic Checks

HTBK does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, HTBK has about the same amount of shares outstanding.
HTBK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HTBK has an improved debt to assets ratio.
HTBK Yearly Shares OutstandingHTBK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
HTBK Yearly Total Debt VS Total AssetsHTBK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

The Debt to FCF ratio of HTBK is 0.88, which is an excellent value as it means it would take HTBK, only 0.88 years of fcf income to pay off all of its debts.
HTBK's Debt to FCF ratio of 0.88 is fine compared to the rest of the industry. HTBK outperforms 76.71% of its industry peers.
HTBK has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, HTBK is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.88
Altman-Z N/A
ROIC/WACCN/A
WACC16.94%
HTBK Yearly LT Debt VS Equity VS FCFHTBK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HTBK Yearly Current Assets VS Current LiabilitesHTBK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

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4

3. Growth

3.1 Past

The earnings per share for HTBK have decreased strongly by -25.27% in the last year.
The Earnings Per Share has been decreasing by -6.01% on average over the past years.
Looking at the last year, HTBK shows a decrease in Revenue. The Revenue has decreased by -3.30% in the last year.
HTBK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.96% yearly.
EPS 1Y (TTM)-25.27%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%11.76%
Revenue 1Y (TTM)-3.3%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%8.15%

3.2 Future

The Earnings Per Share is expected to grow by 15.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.84% on average over the next years. This is quite good.
EPS Next Y21.16%
EPS Next 2Y15.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.62%
Revenue Next 2Y8.84%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HTBK Yearly Revenue VS EstimatesHTBK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
HTBK Yearly EPS VS EstimatesHTBK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.72, HTBK is valued correctly.
Based on the Price/Earnings ratio, HTBK is valued a bit more expensive than the industry average as 67.09% of the companies are valued more cheaply.
HTBK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 12.10, the valuation of HTBK can be described as correct.
Based on the Price/Forward Earnings ratio, HTBK is valued a bit more expensive than the industry average as 64.81% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, HTBK is valued a bit cheaper.
Industry RankSector Rank
PE 15.72
Fwd PE 12.1
HTBK Price Earnings VS Forward Price EarningsHTBK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

HTBK's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 14.48
EV/EBITDA N/A
HTBK Per share dataHTBK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

HTBK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HTBK's earnings are expected to grow with 15.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y15.69%
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

HTBK has a Yearly Dividend Yield of 5.32%, which is a nice return.
HTBK's Dividend Yield is rather good when compared to the industry average which is at 3.47. HTBK pays more dividend than 87.85% of the companies in the same industry.
HTBK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
Industry RankSector Rank
Dividend Yield 5.32%

5.2 History

The dividend of HTBK has a limited annual growth rate of 3.46%.
HTBK has been paying a dividend for at least 10 years, so it has a reliable track record.
HTBK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.46%
Div Incr Years0
Div Non Decr Years11
HTBK Yearly Dividends per shareHTBK Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

HTBK pays out 74.12% of its income as dividend. This is not a sustainable payout ratio.
HTBK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP74.12%
EPS Next 2Y15.69%
EPS Next 3YN/A
HTBK Yearly Income VS Free CF VS DividendHTBK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
HTBK Dividend Payout.HTBK Dividend Payout, showing the Payout Ratio.HTBK Dividend Payout.PayoutRetained Earnings

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HERITAGE COMMERCE CORP

NASDAQ:HTBK (7/3/2025, 7:34:30 PM)

After market: 10.69 0 (0%)

10.69

+0.12 (+1.14%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-24 2025-07-24/amc
Inst Owners78.75%
Inst Owner Change1.35%
Ins Owners2.17%
Ins Owner Change3.97%
Market Cap658.50M
Analysts85
Price Target11.02 (3.09%)
Short Float %2.17%
Short Ratio3.45
Dividend
Industry RankSector Rank
Dividend Yield 5.32%
Yearly Dividend0.52
Dividend Growth(5Y)3.46%
DP74.12%
Div Incr Years0
Div Non Decr Years11
Ex-Date05-08 2025-05-08 (0.13)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.76%
Min EPS beat(2)-1.96%
Max EPS beat(2)3.49%
EPS beat(4)1
Avg EPS beat(4)-4.44%
Min EPS beat(4)-18.3%
Max EPS beat(4)3.49%
EPS beat(8)1
Avg EPS beat(8)-5.87%
EPS beat(12)3
Avg EPS beat(12)-3.75%
EPS beat(16)6
Avg EPS beat(16)-3.06%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-4%
Max Revenue beat(2)4.36%
Revenue beat(4)1
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-6.29%
Max Revenue beat(4)4.36%
Revenue beat(8)1
Avg Revenue beat(8)-4.25%
Revenue beat(12)4
Avg Revenue beat(12)-1.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.52%
PT rev (1m)-0.31%
PT rev (3m)-8.09%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-2.78%
Valuation
Industry RankSector Rank
PE 15.72
Fwd PE 12.1
P/S 3.73
P/FCF 14.48
P/OCF 14.11
P/B 0.95
P/tB 1.26
EV/EBITDA N/A
EPS(TTM)0.68
EY6.36%
EPS(NY)0.88
Fwd EY8.26%
FCF(TTM)0.74
FCFY6.91%
OCF(TTM)0.76
OCFY7.09%
SpS2.86
BVpS11.3
TBVpS8.47
PEG (NY)0.74
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.78%
ROE 6.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 24.52%
GM N/A
FCFM 25.79%
ROA(3y)1.08%
ROA(5y)0.98%
ROE(3y)8.66%
ROE(5y)8.01%
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-8.07%
PM growth 5Y-3.57%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.88
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 105.18%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC16.94%
ROIC/WACCN/A
Cap/Depr(3y)38.01%
Cap/Depr(5y)37.48%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.89%
Profit Quality(3y)102.11%
Profit Quality(5y)115.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.27%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%11.76%
EPS Next Y21.16%
EPS Next 2Y15.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.3%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%8.15%
Revenue Next Year11.62%
Revenue Next 2Y8.84%
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-44.79%
FCF growth 3Y-12.92%
FCF growth 5Y-5.7%
OCF growth 1Y-43.8%
OCF growth 3Y-11.8%
OCF growth 5Y-4.98%