HERITAGE COMMERCE CORP (HTBK)
US4269271098 - Common Stock
We assign a fundamental rating of 4 out of 10 to HTBK. HTBK was compared to 412 industry peers in the Banks industry. HTBK has an average financial health and profitability rating. HTBK has a valuation in line with the averages, but on the other hand it scores bad on growth. HTBK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HTBK was profitable.
HTBK had a positive operating cash flow in the past year.
In the past 5 years HTBK has always been profitable.
In the past 5 years HTBK always reported a positive cash flow from operatings.
1.2 Ratios
HTBK's Return On Assets of 1.24% is fine compared to the rest of the industry. HTBK outperforms 79.61% of its industry peers.
The Return On Equity of HTBK (9.58%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 9.58% | ||
| ROIC | N/A |
ROA(3y)1.13%
ROA(5y)1.03%
ROE(3y)9.36%
ROE(5y)8.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 33.53%, HTBK belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
HTBK's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for HTBK so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 33.53% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y12.97%
PM growth 5Y4.56%
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.
HTBK has a better debt/assets ratio than last year.
2.2 Solvency
HTBK has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
HTBK's Debt to FCF ratio of 0.55 is amongst the best of the industry. HTBK outperforms 82.28% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that HTBK is not too dependend on debt financing.
HTBK has a better Debt to Equity ratio (0.06) than 81.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.07%
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 -3.67%.
HTBK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.81% yearly.
Looking at the last year, HTBK shows a small growth in Revenue. The Revenue has grown by 1.18% in the last year.
HTBK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.87% yearly.
EPS 1Y (TTM)-3.67%
EPS 3Y12.37%
EPS 5Y4.81%
EPS growth Q2Q-35.29%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.19%
Revenue growth 5Y7.87%
Revenue growth Q2Q-18.84%
3.2 Future
The Earnings Per Share is expected to decrease by -8.33% on average over the next years.
The Revenue is expected to grow by 0.20% on average over the next years.
EPS Next Y-23.09%
EPS Next 2Y-8.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.78%
Revenue Next 2Y0.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.54 indicates a rather cheap valuation of HTBK.
Based on the Price/Earnings ratio, HTBK is valued a bit cheaper than the industry average as 76.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HTBK to the average of the S&P500 Index (25.05), we can say HTBK is valued rather cheaply.
A Price/Forward Earnings ratio of 9.81 indicates a reasonable valuation of HTBK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HTBK is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HTBK to the average of the S&P500 Index (21.53), we can say HTBK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HTBK indicates a somewhat cheap valuation: HTBK is cheaper than 69.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as HTBK's earnings are expected to decrease with -8.33% in the coming years.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y-8.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.57%, HTBK is a good candidate for dividend investing.
HTBK's Dividend Yield is rather good when compared to the industry average which is at 3.90. HTBK pays more dividend than 92.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HTBK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
5.2 History
The dividend of HTBK has a limited annual growth rate of 2.80%.
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)2.8%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
HTBK pays out 49.25% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.25%
EPS Next 2Y-8.33%
EPS Next 3YN/A
HERITAGE COMMERCE CORP
NASDAQ:HTBK (4/15/2024, 7:10:37 PM)
After market: 7.92 0 (0%)7.92
+0.01 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap484.47M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.54 | ||
| Fwd PE | 9.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 9.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 33.53% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.67%
EPS 3Y12.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.18%
Revenue growth 3Y8.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y