(HFWA) Heritage Financial - Overview
Sector: Financial Services | Industry: Banks - Regional | Exchange: NASDAQ (USA) | Market Cap: 1.073m USD | Total Return: 22.8% in 12m
Avg Turnover: 6.56M
EPS Trend: -7.8%
Qual. Beats: 2
Rev. Trend: 94.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Heritage Financial Corporation (HFWA) is a bank holding company for Heritage Bank, serving small and medium-sized businesses and individual clients across the United States. Founded in 1927 and headquartered in Olympia, Washington, the institution provides a full suite of deposit products, including money market accounts, savings, and certificates of deposit.
The company’s lending portfolio focuses on commercial real estate (CRE), equipment financing, and Small Business Administration (SBA) guaranteed loans. As a regional bank, Heritage Financial relies on the net interest margin-the spread between interest earned on loans and interest paid on deposits-as a primary driver of profitability. Regional banks often maintain localized credit expertise, allowing them to underwrite complex construction and land development loans that larger national institutions may overlook.
Investors can find more detailed historical performance metrics by exploring ValueRay. In addition to traditional lending, the bank offers digital services such as mobile banking and investment advisory to maintain competitiveness in the evolving financial services sector.
- Net interest margin trends fluctuate with Pacific Northwest commercial loan demand
- Cost of interest-bearing deposits impacts quarterly profitability and earnings per share
- Commercial real estate concentration increases sensitivity to regional economic downturns
- Small Business Administration loan volume drives non-interest income performance
- Operating expenses and efficiency ratios dictate long-term shareholder value creation
| Net Income: 72.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.03 > 1.0 |
| NWC/Revenue: 622.9% < 20% (prev -1.51k%; Δ 2.13k% < -1%) |
| CFO/TA 0.01 > 3% & CFO 89.5m > Net Income 72.6m |
| Net Debt (-1.06b) to EBITDA (85.9m): -12.31 < 3 |
| Current Ratio: 1.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (39.1m) vs 12m ago 13.33% < -2% |
| Gross Margin: 74.78% > 18% (prev 0.68%; Δ 7.41k% > 0.5%) |
| Asset Turnover: 4.53% > 50% (prev 4.59%; Δ -0.06% > 0%) |
| Interest Coverage Ratio: 0.96 > 6 (EBITDA TTM 85.9m / Interest Expense TTM 87.6m) |
| A: 0.26 (Total Current Assets 6.79b - Total Current Liabilities 4.58b) / Total Assets 8.50b |
| B: 0.05 (Retained Earnings 432.3m / Total Assets 8.50b) |
| C: 0.01 (EBIT TTM 84.0m / Avg Total Assets 7.81b) |
| D: 0.15 (Book Value of Equity 1.12b / Total Liabilities 7.38b) |
| Altman-Z'' = 2.10 = BBB |
| DSRI: 1.14 (Receivables 24.3m/19.7m, Revenue 354.1m/327.0m) |
| GMI: 0.90 (GM 74.78% / 67.54%) |
| AQI: 0.22 (AQ_t 0.19 / AQ_t-1 0.86) |
| SGI: 1.08 (Revenue 354.1m / 327.0m) |
| TATA: -0.00 (NI 72.6m - CFO 89.5m) / TA 8.50b) |
| Beneish M = -3.40 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 27.14 with a total of 237,445 shares traded.
Over the past week, the price has changed by +4.42%,
over one month by +0.31%,
over three months by +1.14% and
over the past year by +22.75%.
Heritage Financial has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold HFWA.
- StrongBuy: 1
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 30.6 | 12.7% |
P/E Forward = 12.3305
P/S = 4.04
P/B = 1.0175
P/EG = 2.125
Revenue TTM = 354.1m USD
EBIT TTM = 84.0m USD
EBITDA TTM = 85.9m USD
Long Term Debt = 42.4m USD (from longTermDebt, last fiscal year)
Short Term Debt = 20.0m USD (from shortTermDebt, last quarter)
Debt = 42.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.06b USD (calculated: Debt 42.4m - CCE 1.10b)
Enterprise Value = 15.9m USD (1.07b + Debt 42.4m - CCE 1.10b)
Interest Coverage Ratio = 0.96 (Ebit TTM 84.0m / Interest Expense TTM 87.6m)
EV/FCF = 0.23x (Enterprise Value 15.9m / FCF TTM 68.5m)
FCF Yield = 429.9% (FCF TTM 68.5m / Enterprise Value 15.9m)
FCF Margin = 19.35% (FCF TTM 68.5m / Revenue TTM 354.1m)
Net Margin = 20.50% (Net Income TTM 72.6m / Revenue TTM 354.1m)
Gross Margin = 74.78% ((Revenue TTM 354.1m - Cost of Revenue TTM 89.3m) / Revenue TTM)
Gross Margin QoQ = 79.44% (prev 76.39%)
Tobins Q-Ratio = 0.00 (Enterprise Value 15.9m / Total Assets 8.50b)
Interest Expense / Debt = 206.5% (Interest Expense 87.6m / Debt 42.4m)
Taxrate = 15.40% (3.45m / 22.4m)
NOPAT = 71.1m (EBIT 84.0m * (1 - 15.40%))
Current Ratio = 0.66 (Total Current Assets 6.79b / Total Current Liabilities 10.2b)
Debt / Equity = 0.04 (Debt 42.4m / totalStockholderEquity, last quarter 1.12b)
Debt / EBITDA = -12.31 (Net Debt -1.06b / EBITDA 85.9m)
Debt / FCF = -15.43 (Net Debt -1.06b / FCF TTM 68.5m)
Total Stockholder Equity = 957.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.93% (Net Income 72.6m / Total Assets 8.50b)
RoE = 7.58% (Net Income TTM 72.6m / Total Stockholder Equity 957.4m)
RoCE = 8.41% (EBIT 84.0m / Capital Employed (Equity 957.4m + L.T.Debt 42.4m))
RoIC = 0.84% (NOPAT 71.1m / Invested Capital 8.50b)
WACC = 8.48% (E(1.07b)/V(1.12b) * Re(8.82%) + (debt cost/tax rate unavailable))
Discount Rate = 8.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: 4.94%
[DCF] Terminal Value 77.54% ; FCFF base≈63.2m ; Y1≈72.5m ; Y5≈106.7m
[DCF] Fair Price = 63.69 (EV 1.57b - Net Debt -1.06b = Equity 2.63b / Shares 41.2m; r=8.48% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -7.79 | EPS CAGR: -1.83% | SUE: 1.60 | # QB: 2
Revenue Correlation: 94.87 | Revenue CAGR: 6.10% | SUE: 0.61 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.54 | Chg30d=-8.70% | Revisions=-56% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.59 | Chg30d=-7.30% | Revisions=-60% | Analysts=6
EPS current Year (2026-12-31): EPS=2.39 | Chg30d=-4.72% | Revisions=-60% | GrowthEPS=+6.6% | GrowthRev=+39.0%
EPS next Year (2027-12-31): EPS=2.79 | Chg30d=-4.06% | Revisions=-60% | GrowthEPS=+17.0% | GrowthRev=+8.3%
[Analyst] Revisions Ratio: -60%