HERITAGE COMMERCE CORP (HTBK) Stock Fundamental Analysis
NASDAQ:HTBK - Nasdaq - US4269271098 - Common Stock - Currency: USD
Overall HTBK gets a fundamental rating of 4 out of 10. We evaluated HTBK against 398 industry peers in the Banks industry. HTBK has a bad profitability rating. Also its financial health evaluation is rather negative. HTBK has a decent growth rate and is not valued too expensively. Finally HTBK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HTBK was profitable.
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.
1.2 Ratios
HTBK has a Return On Assets (0.72%) which is in line with its industry peers.
The Return On Equity of HTBK (5.88%) is worse than 69.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.88% | ||
| 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
With a Profit Margin value of 23.51%, HTBK perfoms like the industry average, outperforming 51.26% of the companies in the same industry.
In the last couple of years the Profit Margin of HTBK has declined.
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) | 23.51% | ||
| 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.
Compared to 1 year ago, HTBK has more shares outstanding
Compared to 5 years ago, HTBK has more shares outstanding
The debt/assets ratio for HTBK has been reduced compared to a year ago.
2.2 Solvency
HTBK has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.06, HTBK is in the better half of the industry, outperforming 73.12% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that HTBK is not too dependend on debt financing.
The Debt to Equity ratio of HTBK (0.06) is better than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC17.62%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for HTBK have decreased strongly by -25.27% in the last year.
Measured over the past years, HTBK shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.01% on average per year.
The Revenue for HTBK has decreased by -10.31% in the past year. This is quite bad
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)-10.31%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%14.88%
3.2 Future
Based on estimates for the next years, HTBK will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.62% on average per year.
Based on estimates for the next years, HTBK will show a quite strong growth in Revenue. The Revenue will grow by 9.09% on average per year.
EPS Next Y22.35%
EPS Next 2Y15.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.64%
Revenue Next 2Y9.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
HTBK is valuated correctly with a Price/Earnings ratio of 13.40.
62.06% of the companies in the same industry are cheaper than HTBK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.92, HTBK is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.33, the valuation of HTBK can be described as very reasonable.
HTBK's Price/Forward Earnings ratio is in line with the industry average.
HTBK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HTBK indicates a slightly more expensive valuation: HTBK is more expensive than 62.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| 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 15.62% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y15.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HTBK has a Yearly Dividend Yield of 5.73%, which is a nice return.
HTBK's Dividend Yield is rather good when compared to the industry average which is at 3.63. HTBK pays more dividend than 90.95% of the companies in the same industry.
HTBK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
The dividend of HTBK has a limited annual growth rate of 3.29%.
HTBK has been paying a dividend for at least 10 years, so it has 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
HTBK pays out 78.61% 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.
DP78.61%
EPS Next 2Y15.62%
EPS Next 3YN/A
9.11
+0.04 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners79.02%
Inst Owner Change-0.58%
Ins Owners2.25%
Ins Owner Change4.15%
Market Cap561.27M
Analysts85
Price Target11.82 (29.75%)
Short Float %1.63%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
Yearly Dividend0.52
Dividend Growth(5Y)3.29%
DP78.61%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.47%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.99%
EPS beat(4)0
Avg EPS beat(4)-7.99%
Min EPS beat(4)-18.3%
Max EPS beat(4)-0.99%
EPS beat(8)0
Avg EPS beat(8)-6.31%
EPS beat(12)3
Avg EPS beat(12)-3.87%
EPS beat(16)6
Avg EPS beat(16)-2.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-6.29%
Max Revenue beat(2)4.36%
Revenue beat(4)1
Avg Revenue beat(4)-3.47%
Min Revenue beat(4)-6.29%
Max Revenue beat(4)4.36%
Revenue beat(8)1
Avg Revenue beat(8)-4.22%
Revenue beat(12)5
Avg Revenue beat(12)-1.12%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)16.13%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)11.5%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)8.6%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)8.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 10.33 | ||
| P/S | 3.26 | ||
| P/FCF | 15.03 | ||
| P/OCF | 14.4 | ||
| P/B | 0.81 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.68
EY7.46%
EPS(NY)0.88
Fwd EY9.68%
FCF(TTM)0.61
FCFY6.65%
OCF(TTM)0.63
OCFY6.94%
SpS2.8
BVpS11.2
TBVpS8.37
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 5.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 23.51% | ||
| GM | N/A | ||
| FCFM | 21.66% |
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-Score3
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 46.02% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 92.15% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score3
WACC17.62%
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)-25.27%
EPS 3Y-6.21%
EPS 5Y-6.01%
EPS Q2Q%11.76%
EPS Next Y22.35%
EPS Next 2Y15.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.31%
Revenue growth 3Y3.43%
Revenue growth 5Y3.96%
Sales Q2Q%14.88%
Revenue Next Year13.64%
Revenue Next 2Y9.09%
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-47.65%
FCF growth 3Y-12.94%
FCF growth 5Y-5.72%
OCF growth 1Y-46.62%
OCF growth 3Y-11.83%
OCF growth 5Y-4.99%