HERITAGE COMMERCE CORP (HTBK) Stock Fundamental Analysis
NASDAQ:HTBK - US4269271098 - Common Stock
10.33 USD
-0.03 (-0.29%)
10.33 USD
0 (0%)
Overall HTBK gets a fundamental rating of 4 out of 10. We evaluated HTBK 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.
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.
Each year in the past 5 years HTBK had a positive operating cash flow.
1.2 Ratios
HTBK's Return On Assets of 0.72% is in line compared to the rest of the industry. HTBK outperforms 40.25% of its industry peers.
With a Return On Equity value of 5.63%, HTBK is not doing good in the industry: 72.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.63% | ||
| 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
1.3 Margins
HTBK has a Profit Margin (21.46%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HTBK has declined.
HTBK 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) | 21.46% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-8.43%
PM growth 5Y-3.79%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HTBK does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HTBK has been increased compared to 1 year ago.
The number of shares outstanding for HTBK has been increased compared to 5 years ago.
Compared to 1 year ago, HTBK has an improved debt to assets ratio.
2.2 Solvency
HTBK has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
The Debt to FCF ratio of HTBK (0.92) is better than 72.41% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that HTBK is not too dependend on debt financing.
HTBK's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. HTBK outperforms 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.53%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HTBK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.33%.
The Earnings Per Share has been decreasing by -6.01% on average over the past years.
The Revenue has been growing slightly by 3.79% in the past year.
The Revenue has been growing slightly by 3.96% on average over the past years.
EPS 1Y (TTM)-6.33%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%40%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%13.56%
3.2 Future
HTBK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.09% yearly.
The Revenue is expected to grow by 10.71% on average over the next years. This is quite good.
EPS Next Y25.8%
EPS Next 2Y16.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.41%
Revenue Next 2Y10.71%
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.
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
HTBK is valuated correctly with a Price/Earnings ratio of 13.96.
Compared to the rest of the industry, the Price/Earnings ratio of HTBK is on the same level as its industry peers.
HTBK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
HTBK is valuated reasonably with a Price/Forward Earnings ratio of 11.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HTBK indicates a slightly more expensive valuation: HTBK is more expensive than 60.76% of the companies listed in the same industry.
HTBK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HTBK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.77 | ||
| 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.
A more expensive valuation may be justified as HTBK's earnings are expected to grow with 16.09% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y16.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HTBK has a Yearly Dividend Yield of 5.02%, which is a nice return.
HTBK's Dividend Yield is rather good when compared to the industry average which is at 3.17. HTBK pays more dividend than 89.37% of the companies in the same industry.
HTBK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
5.2 History
The dividend of HTBK has a limited annual growth rate of 3.29%.
HTBK has paid a dividend for at least 10 years, which is a reliable track record.
HTBK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.29%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
81.35% of the earnings are spent on dividend by HTBK. This is not a sustainable payout ratio.
HTBK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.35%
EPS Next 2Y16.09%
EPS Next 3YN/A
10.33
-0.03 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners78.64%
Inst Owner Change-1.55%
Ins Owners2.18%
Ins Owner Change5.28%
Market Cap634.78M
Analysts85.45
Price Target11.22 (8.62%)
Short Float %1.22%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.02% |
Yearly Dividend0.52
Dividend Growth(5Y)3.29%
DP81.35%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.92%
Min EPS beat(2)3.49%
Max EPS beat(2)8.36%
EPS beat(4)2
Avg EPS beat(4)2.22%
Min EPS beat(4)-1.96%
Max EPS beat(4)8.36%
EPS beat(8)2
Avg EPS beat(8)-3.87%
EPS beat(12)3
Avg EPS beat(12)-3.13%
EPS beat(16)7
Avg EPS beat(16)-1.45%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-4%
Max Revenue beat(2)-2.99%
Revenue beat(4)1
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-6.29%
Max Revenue beat(4)4.36%
Revenue beat(8)1
Avg Revenue beat(8)-3.93%
Revenue beat(12)3
Avg Revenue beat(12)-2.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)1.85%
PT rev (3m)1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.64%
EPS NY rev (1m)3.3%
EPS NY rev (3m)3.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.61 | ||
| P/S | 3.48 | ||
| P/FCF | 14.77 | ||
| P/OCF | 14.49 | ||
| P/B | 0.91 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.74
EY7.16%
EPS(NY)0.89
Fwd EY8.61%
FCF(TTM)0.7
FCFY6.77%
OCF(TTM)0.71
OCFY6.9%
SpS2.97
BVpS11.31
TBVpS8.49
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 21.46% | ||
| GM | N/A | ||
| FCFM | 23.57% |
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-8.43%
PM growth 5Y-3.79%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.92 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 24.69% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 109.8% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.53%
ROIC/WACCN/A
Cap/Depr(3y)38.07%
Cap/Depr(5y)37.52%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.89%
Profit Quality(3y)102.19%
Profit Quality(5y)115.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.33%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%40%
EPS Next Y25.8%
EPS Next 2Y16.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.79%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%13.56%
Revenue Next Year14.41%
Revenue Next 2Y10.71%
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-58.42%
FCF growth 3Y-12.94%
FCF growth 5Y-5.72%
OCF growth 1Y-57.91%
OCF growth 3Y-11.83%
OCF growth 5Y-4.99%