Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. More Details
Flawless balance sheet average dividend payer.
Share Price & News
How has Heritage Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HFWA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HFWA's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: HFWA underperformed the US Banks industry which returned 82.9% over the past year.
Return vs Market: HFWA exceeded the US Market which returned 51.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Heritage Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StHere's What We Like About Heritage Financial's (NASDAQ:HFWA) Upcoming Dividend
2 weeks ago | Simply Wall StIs Heritage Financial Corporation (NASDAQ:HFWA) A Smart Pick For Income Investors?
1 month ago | Simply Wall StThis Insider Has Just Sold Shares In Heritage Financial Corporation (NASDAQ:HFWA)
Is Heritage Financial undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HFWA ($28.69) is trading below our estimate of fair value ($39.05)
Significantly Below Fair Value: HFWA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HFWA is poor value based on its PE Ratio (17.3x) compared to the US Banks industry average (12.1x).
PE vs Market: HFWA is good value based on its PE Ratio (17.3x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: HFWA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HFWA is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.1x).
How is Heritage Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HFWA's earnings are forecast to decline over the next 3 years (-13.7% per year).
Earnings vs Market: HFWA's earnings are forecast to decline over the next 3 years (-13.7% per year).
High Growth Earnings: HFWA's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HFWA's revenue (0.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: HFWA's revenue (0.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HFWA's Return on Equity is forecast to be low in 3 years time (7.2%).
How has Heritage Financial performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HFWA has high quality earnings.
Growing Profit Margin: HFWA's current net profit margins (27.5%) are lower than last year (28.5%).
Past Earnings Growth Analysis
Earnings Trend: HFWA's earnings have grown by 9.2% per year over the past 5 years.
Accelerating Growth: HFWA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HFWA had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Banks industry average (17.2%).
Return on Equity
High ROE: HFWA's Return on Equity (7.2%) is considered low.
How is Heritage Financial's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: HFWA's Assets to Equity ratio (8.5x) is low.
Allowance for Bad Loans: HFWA has a sufficient allowance for bad loans (121%).
Low Risk Liabilities: 97% of HFWA's liabilities are made up of primarily low risk sources of funding.
Loan Level: HFWA has an appropriate level of Loans to Assets ratio (64%).
Low Risk Deposits: HFWA's Loans to Deposits ratio (75%) is appropriate.
Level of Bad Loans: HFWA has an appropriate level of bad loans (1.2%).
What is Heritage Financial current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HFWA's dividend (2.79%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: HFWA's dividend (2.79%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: HFWA's dividend payments have been volatile in the past 10 years.
Growing Dividend: HFWA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.4%), HFWA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HFWA's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeff Deuel (61 yo)
Mr. Jeffrey J. Deuel is President and Chief Executive Officer of Heritage Financial Corporation, positions he has held since July 1, 2019. Previously, Mr. Deuel was President and Chief Executive Officer of...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD1.27M) is below average for companies of similar size in the US market ($USD2.34M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Experienced Management: HFWA's management team is seasoned and experienced (9 years average tenure).
Experienced Board: HFWA's board of directors are considered experienced (7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HFWA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Heritage Financial Corporation's company bio, employee growth, exchange listings and data sources
- Name: Heritage Financial Corporation
- Ticker: HFWA
- Exchange: NasdaqGS
- Founded: 1927
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$1.016b
- Shares outstanding: 35.96m
- Website: https://www.hf-wa.com
Number of Employees
- Heritage Financial Corporation
- 201 Fifth Avenue SW
- United States
Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. The...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 03:23|
|End of Day Share Price||2021/05/06 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.