HFWA Stock Analysis: Heritage Financial | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 1.221m USD | 12M Return: 21% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 8.54M
EPS Trend: -4.6%
Qual. Beats: 0
Rev. Trend: 94.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Heritage Financial Corporation (NASDAQ: HFWA) is a bank holding company headquartered in Olympia, Washington, that operates through its subsidiary, Heritage Bank. Founded in 1927, the company provides a range of banking and financial services to small and medium-sized businesses and their owners across the United States.
Its deposit offerings include noninterest and interest-bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. On the lending side, Heritage Bank provides commercial business loans (including lines of credit and equipment financing), real estate construction and land development loans, residential real estate loans, multifamily and commercial construction loans, U.S. SBA-guaranteed loans, and consumer loans. The company also offers investment advisory services, online and mobile banking with mobile deposit, Visa debit cards, and related digital banking tools.
As a regional bank within the Financials sector, Heritage Financial focuses on relationship-based community banking, with a particular emphasis on SBA-guaranteed lending, which is a common risk-mitigated growth channel for community banks serving the small business market. The company adopted its current name in 1998.
- Net interest margin compresses as deposit costs outpace loan yields
- CRE and construction loan growth drives net interest income
- Pacific Northwest regional concentration exposes bank to local economy weakness
| Net Income: 72.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 0.00 > 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 (86.2m): -12.27 < 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 67.54%; Δ 7.23% > 0.5%) |
| Asset Turnover: 4.53% > 50% (prev 4.59%; Δ -0.06% > 0%) |
| Interest Coverage Ratio: 0.96 > 6 (EBIT TTM 84.0m / 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 67.54% / 74.78%) |
| 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 July 08, 2026, the stock is trading at USD 29.44 with a total of 214,824 shares traded. Over the past week, the price has changed by +0.14%, over one month by +5.48%, over three months by +11.32% and over the past year by +20.98%.
Current recommended Stop Loss: 27.50 (which is 6.6% or 2.7 ATR below the current price).
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 | 31.2 | 6% |
P/E Trailing = 14.5196
P/E Forward = 12.3305
P/S = 4.5972
P/B = 1.0943
P/EG = 2.125
Revenue TTM = 354.1m USD
EBIT TTM = 84.0m USD
EBITDA TTM = 86.2m USD
Long Term Debt = 42.4m USD (from longTermDebt, last quarter)
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 = 163.9m USD (1.22b + Debt 42.4m - CCE 1.10b)
Interest Coverage Ratio = 0.96 (Ebit TTM 84.0m / Interest Expense TTM 87.6m)
EV/FCF = 2.04x (Enterprise Value 163.9m / FCF TTM 80.2m)
FCF Yield = 48.96% (FCF TTM 80.2m / Enterprise Value 163.9m)
FCF Margin = 22.66% (FCF TTM 80.2m / 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 = 0.02 (Enterprise Value 163.9m / Total Assets 8.50b)
Interest Expense / Debt = 206.5% (Interest Expense 87.6m / Debt 42.4m)
Taxrate = 14.47% (12.3m / 84.8m)
NOPAT = 71.9m (EBIT 84.0m * (1 - 14.47%))
Current Ratio = 1.48 (Total Current Assets 6.79b / Total Current Liabilities 4.58b)
Debt / Equity = 0.04 (Debt 42.4m / totalStockholderEquity, last quarter 1.12b)
Debt / EBITDA = -12.27 (Net Debt -1.06b / EBITDA 86.2m)
Debt / FCF = -13.17 (Net Debt -1.06b / FCF TTM 80.2m)
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 = 8.40% (EBIT 84.0m / Capital Employed (Equity 957.4m + L.T.Debt 42.4m))
RoIC = 0.85% (NOPAT 71.9m / Invested Capital 8.48b)
WACC = 8.04% (E(1.22b)/V(1.26b) * Re(8.32%) + (debt cost/tax rate unavailable))
Discount Rate = 8.32% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: 4.94%
[DCF] Terminal Value 77.97% ; FCFF base≈75.0m ; Y1≈86.0m ; Y5≈126.5m
[DCF] Fair Price = 71.83 (EV 1.90b - Net Debt -1.06b = Equity 2.96b / Shares 41.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -4.56 | EPS CAGR: -1.10% | SUE: 0.19 | # QB: 0
Revenue Correlation: 94.87 | Revenue CAGR: 6.10% | SUE: 0.61 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.54 | Chg30d=+0.00% | Revisions=-62% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.59 | Chg30d=+0.00% | Revisions=-67% | Analysts=6
EPS current Year (2026-12-31): EPS=2.39 | Chg30d=+0.00% | Revisions=-67% | GrowthEPS=+6.6% | GrowthRev=+39.0%
EPS next Year (2027-12-31): EPS=2.79 | Chg30d=+0.00% | Revisions=-67% | GrowthEPS=+17.0% | GrowthRev=+8.3%
[Analyst] Revisions Ratio: -88% (up=0, down=23)