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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Community Trust Bancorp, Inc. (Kentucky)

First Mid Bancshares, Inc.

Heritage Commerce Corp.

Heritage Financial Corp. (Washington)

Coastal Financial Corp. (Washington)

HBT Financial, Inc.

Amalgamated Financial Corp.

Great Southern Bancorp, Inc. (Missouri)

First Community Bancshares, Inc. (Virginia)

Premier Financial Corp.

Eagle Bancorp, Inc. (Maryland)

Why is Heritage Commerce Corp. ?

High Profitability with a Net Interest Margin of 5.20%

Strong Long Term Fundamental Strength with a 5.19% CAGR growth in Net Profits

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

GROSS NPA (%)(Q) Lowest at 0.08%
NII(Q) Highest at USD 51.01 MM
NET SALES(Q) Highest at USD 67.64 MM

With ROA of 0.59%, it has a fair valuation with a 1.07 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 25.21%, its profits have risen by 17.8% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 91.48%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 4.05% over the previous quarter.

Market Beating Performance

The stock has generated a return of 25.21% in the last 1 year, much higher than market (S&P 500) returns of 11.87%

Real-Time Research Report

Verdict Report

How much should you hold?

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.

55.31%

1.83

29.23%

S&P 500

30.64%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.50%

EBIT Growth (5y)

5.67%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

67.08%

Pledged Shares

Institutional Holding

91.48%

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

1.07

EV to EBIT

2.26

EV to EBITDA

2.18

EV to Capital Employed

1.48

EV to Sales

0.57

PEG Ratio

0.89

Dividend Yield

ROCE (Latest)

65.32%

ROE (Latest)

6.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Bullish

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

12What is working for the Company

GROSS NPA (%)

NII(Q)

Highest at USD 51.01 MM

NET SALES(Q)

Highest at USD 67.64 MM

OPERATING PROFIT(Q)

Highest at USD 21.85 MM

OPERATING PROFIT MARGIN(Q)

Highest at 32.3 %

PRE-TAX PROFIT(Q)

Highest at USD 21.85 MM

NET PROFIT(Q)

Highest at USD 15.03 MM

EPS(Q)

Highest at USD 0.24

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Heritage Commerce Corp.

Non Performing Loans (%)

Lowest at 0.08% and Fallen

In each half year 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 51.01 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Net Sales

Highest at USD 67.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 21.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 32.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 21.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 21.85 MM has Grown at 44.32%

over average net sales of the previous four periods of USD 15.14 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 15.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

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

Capital Adequacy Ratio

Lowest at 12.9%

in the last five periods

MOJO Watch

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

CAR (%)