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HERITAGE COMMERCE CORP (HTBK) Stock Fundamental Analysis

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

9.24  -0.06 (-0.65%)

After market: 9.24 0 (0%)

Fundamental Rating

4

Overall HTBK gets a fundamental rating of 4 out of 10. We evaluated HTBK against 397 industry peers in the Banks industry. Both the profitability and financial health of HTBK have multiple concerns. HTBK is not valued too expensively and it also shows a decent growth rate. Finally HTBK also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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3

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.
Each year in the past 5 years HTBK has been profitable.
HTBK had a positive operating cash flow in each of the past 5 years.
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

HTBK has a Return On Assets of 0.72%. This is comparable to the rest of the industry: HTBK outperforms 40.81% of its industry peers.
HTBK has a Return On Equity of 5.88%. This is in the lower half of the industry: HTBK underperforms 69.52% of its industry peers.
Industry RankSector 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
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

HTBK has a Profit Margin of 23.51%. This is comparable to the rest of the industry: HTBK outperforms 51.13% of its industry peers.
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 RankSector 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
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.
HTBK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HTBK has more shares outstanding
The debt/assets ratio for HTBK has been reduced compared to a year ago.
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 1.06, which is an excellent value as it means it would take HTBK, only 1.06 years of fcf income to pay off 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 70.53% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that HTBK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, HTBK is doing good in the industry, outperforming 79.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 1.06
Altman-Z N/A
ROIC/WACCN/A
WACC17.44%
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

HTBK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.27%.
HTBK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.01% yearly.
The Revenue for HTBK has decreased by -10.31% in the past year. This is quite bad
Measured over the past years, HTBK shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
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.
HTBK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.09% yearly.
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

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.
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.
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

A Price/Earnings ratio of 13.59 indicates a correct valuation of HTBK.
Based on the Price/Earnings ratio, HTBK is valued a bit more expensive than the industry average as 61.46% of the companies are valued more cheaply.
HTBK is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.47 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, HTBK is valued a bit cheaper.
Industry RankSector Rank
PE 13.59
Fwd PE 10.47
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 ratio is a bit more expensive when compared to the industry. HTBK is more expensive than 62.72% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.24
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.
A more expensive valuation may be justified as HTBK's earnings are expected to grow with 15.62% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y15.62%
EPS Next 3YN/A

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.73%, HTBK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.49, HTBK pays a better dividend. On top of this HTBK pays more dividend than 90.93% of the companies listed in the same industry.
HTBK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
Industry RankSector Rank
Dividend Yield 5.73%

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
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

78.61% 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.
DP78.61%
EPS Next 2Y15.62%
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 (5/5/2025, 8:16:37 PM)

After market: 9.24 0 (0%)

9.24

-0.06 (-0.65%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners79.02%
Inst Owner Change-1.13%
Ins Owners2.25%
Ins Owner Change4.15%
Market Cap569.28M
Analysts85
Price Target11.82 (27.92%)
Short Float %1.99%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 5.73%
Yearly Dividend0.52
Dividend Growth(5Y)3.29%
DP78.61%
Div Incr Years0
Div Non Decr Years11
Ex-Date05-08 2025-05-08 (0.13)
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)-1.42%
PT rev (3m)0%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)7.53%
Valuation
Industry RankSector Rank
PE 13.59
Fwd PE 10.47
P/S 3.3
P/FCF 15.24
P/OCF 14.61
P/B 0.83
P/tB 1.1
EV/EBITDA N/A
EPS(TTM)0.68
EY7.36%
EPS(NY)0.88
Fwd EY9.55%
FCF(TTM)0.61
FCFY6.56%
OCF(TTM)0.63
OCFY6.85%
SpS2.8
BVpS11.2
TBVpS8.37
PEG (NY)0.61
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC17.44%
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%