NasdaqGS:HTLF

Stock Analysis Report

Heartland Financial USA

Executive Summary

Heartland Financial USA, Inc., a multi-bank holding company, provides commercial, small business, and consumer banking services to individuals and businesses in the United States.

Rewards

Trading at 38.2% below its fair value

Earnings are forecast to grow 13.16% per year

Earnings grew by 27.5% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Heartland Financial USA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HTLF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

HTLF

-1.5%

US Banks

0.06%

US Market


1 Year Return

2.3%

HTLF

9.7%

US Banks

19.4%

US Market

Return vs Industry: HTLF underperformed the US Banks industry which returned 9.7% over the past year.

Return vs Market: HTLF underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

HTLFIndustryMarket
7 Day-1.1%-1.5%0.06%
30 Day1.4%-2.8%1.1%
90 Day8.4%0.3%8.9%
1 Year3.9%2.3%12.9%9.7%21.9%19.4%
3 Year4.4%0.5%22.5%13.7%48.9%39.3%
5 Year75.1%64.3%72.4%52.8%71.9%53.1%

Price Volatility Vs. Market

How volatile is Heartland Financial USA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Heartland Financial USA undervalued compared to its fair value and its price relative to the market?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTLF ($50.28) is trading below our estimate of fair value ($81.41)

Significantly Below Fair Value: HTLF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HTLF is good value based on its PE Ratio (12.2x) compared to the Banks industry average (12.6x).

PE vs Market: HTLF is good value based on its PE Ratio (12.2x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HTLF is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HTLF is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Heartland Financial USA forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTLF's forecast earnings growth (13.2% per year) is above the savings rate (1.7%).

Earnings vs Market: HTLF's earnings (13.2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HTLF's earnings are forecast to grow, but not significantly.

Revenue vs Market: HTLF's revenue (9.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HTLF's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HTLF's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Heartland Financial USA performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTLF has high quality earnings.

Growing Profit Margin: HTLF's current net profit margins (27.4%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: HTLF's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: HTLF's earnings growth over the past year (27.5%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: HTLF earnings growth over the past year (27.5%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: HTLF's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Heartland Financial USA's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HTLF has a low level of unsold assets or inventory.

Debt Coverage by Assets: HTLF's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: HTLF's level of assets compared to its equity is low.

Allowance for Bad Loans: HTLF has a low allowance for bad loans.

Low Risk Liabilities: HTLF's liabilities are made up of primarily low risk sources of funding.

Loan Level: HTLF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HTLF's loans are broadly funded by customer deposits.

Level of Bad Loans: HTLF has an appropriate level of bad loans (0.96%)


Next Steps

Dividend

What is Heartland Financial USA's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: HTLF's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: HTLF's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: HTLF's dividend payments have been volatile in the past 10 years.

Growing Dividend: HTLF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.4%), HTLF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HTLF's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Bruce Lee (58yo)

1.7yrs

Tenure

US$1,492,045

Compensation

Mr. Bruce K. Lee has been the President of Heartland Financial USA, Inc. since January 02, 2015 and has been it Director since May 17, 2017. He also serves as CEO of Heartland Financial USA, Inc. since Jun ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD1.49M) is below average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Bruce's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lynn Fuller
Executive Chairman of the Board20.1yrsUS$1.37m2.97% $55.0m
Bruce Lee
President1.7yrsUS$1.49m0.070% $1.3m
Bryan McKeag
Executive VP & CFO6.4yrsUS$783.07k0.057% $1.1m
Andrew Townsend
Executive VP & Chief Credit Officer4.1yrsUS$599.18k0.083% $1.5m
Daniel Stevens
Executive VP0.2yrsno datano data
Janet Quick
Executive VP4.1yrsno data0.040% $749.3k
Dennis Mochal
Executive VP & Chief Information Officer1.1yrsno datano data
Michael Coyle
Executive VP & Senior General Counsel10.9yrsno data0.033% $603.7k
Laura Hughes
Executive VP & Chief Marketing Officer2.5yrsno datano data
Deborah Deters
Executive VP & Chief Human Resources Officer2.2yrsno data0.0022% $41.4k

2.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: HTLF's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lynn Fuller
Executive Chairman of the Board20.1yrsUS$1.37m2.97% $55.0m
Bruce Lee
President1.7yrsUS$1.49m0.070% $1.3m
John Schmidt
Independent Director19.1yrsUS$108.75k0.36% $6.6m
Mark Falb
Independent Vice Chairman of the Board19.1yrsUS$113.45k0.30% $5.6m
Thomas Flynn
Independent Vice Chairman of the Board15.1yrsUS$122.81k0.22% $4.2m
R. McCoy
Independent Director5.8yrsUS$108.40k0.14% $2.5m
Duane White
Independent Director6.8yrsUS$107.08k0.059% $1.1m
Kurt Saylor
Director6.3yrsUS$96.74k0.44% $8.1m
Martin Schmitz
Director3.1yrsUS$96.37k0.18% $3.3m
Susan Murphy
Independent Director1.6yrsUS$87.17k0.011% $200.9k

6.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: HTLF's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.2%.


Top Shareholders

Company Information

Heartland Financial USA, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heartland Financial USA, Inc.
  • Ticker: HTLF
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.857b
  • Shares outstanding: 36.70m
  • Website: https://www.htlf.com

Number of Employees


Location

  • Heartland Financial USA, Inc.
  • 1398 Central Avenue
  • Dubuque
  • Iowa
  • 52001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTLFNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJul 1995
1H4DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1995

Biography

Heartland Financial USA, Inc., a multi-bank holding company, provides commercial, small business, and consumer banking services to individuals and businesses in the United States. It accepts various deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, health savings accounts, and other time deposits. The company also offers commercial and industrial loans; commercial real estate loans; real estate mortgage loans; small business loans; agricultural loans; consumer loans comprising motor vehicle loans, home improvement loans, home equity line of credit, and fixed rate home equity and personal lines of credit; and credit cards for commercial, business, and personal use. In addition, it provides online banking, mobile banking, telephone banking, bill payment, automated clearing house, wire transfer, zero balance account, transaction reporting, lock box, remote deposit capture, accounts receivable, investment sweep account, reconciliation, treasury management, foreign exchange, and various fraud prevention services, as well as commercial purchasing and merchant credit cards, debit cards, and automated teller machines. Further, the company offers investment services, such as mutual funds, annuities, retirement products, education savings products, brokerage services, employer sponsored plans, and insurance products, as well as vehicle, property and casualty, and life and disability insurance products. Additionally, it is involved in the community development, consumer finance, multi-line insurance agency, and property management businesses. The company operates through a network of 119 banking locations in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas, and California. Heartland Financial USA, Inc. was founded in 1981 and is headquartered in Dubuque, Iowa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:08
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.