Heritage Commerce Corp. (HTBK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Heritage Commerce Corp.

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Why is Heritage Commerce Corp. ?

High Profitability with a Net Interest Margin of 3.31%

Strong Long Term Fundamental Strength with a 0.16% CAGR growth in Net Profits

The company has declared positive results in Mar'2025 after 5 consecutive negative quarters

GROSS NPA (%)(Q) Lowest at 0.17%
NII(Q) Highest at USD 45.39 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 125.36%

With ROA of 0.47%, it has a very attractive valuation with a 0.84 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.37%, its profits have fallen by -24.6%

High Institutional Holdings at 88.11%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Heritage Commerce Corp. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Heritage Commerce Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Heritage Commerce Corp.

8.31%

1.42

27.98%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.39%

EBIT Growth (5y)

1.87%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

78.94%

Pledged Shares

Institutional Holding

88.11%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.84

EV to EBIT

-2.77

EV to EBITDA

-2.61

EV to Capital Employed

3.78

EV to Sales

-0.62

PEG Ratio

Dividend Yield

ROCE (Latest)

-136.56%

ROE (Latest)

6.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

GROSS NPA (%)

NII(Q)

Highest at USD 45.39 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 125.36%

CASH AND EQV(HY)

Highest at USD 99.64 MM

-10What is not working for the Company

OPERATING PROFIT(Q)

Lowest at USD 8.93 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.04 %

PRE-TAX PROFIT(Q)

Lowest at USD 8.93 MM

NET PROFIT(Q)

Lowest at USD 6.39 MM

EPS(Q)

Lowest at USD 0.1

Here's what is working for Heritage Commerce Corp.

Non Performing Loans (%)

Lowest at 0.17%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 45.39 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Cash and Eqv

Highest at USD 99.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 125.36%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Heritage Commerce Corp.

Pre-Tax Profit

At USD 8.93 MM has Fallen at -39.02%

over average net sales of the previous four periods of USD 14.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 6.39 MM has Fallen at -39.13%

over average net sales of the previous four periods of USD 10.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 8.93 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 14.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 8.93 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 6.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Capital Adequacy Ratio

Lowest at 13.3%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)