Heritage Financial Corp. (Washington) (HFWA) 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

Banc of California, Inc.

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ConnectOne Bancorp, Inc.

Tompkins Financial Corp.

Community Trust Bancorp, Inc. (Kentucky)

First Mid Bancshares, Inc.

Heritage Financial Corp. (Washington)

Coastal Financial Corp. (Washington)

Republic Bancorp, Inc. (Kentucky)

Premier Financial Corp.

Eagle Bancorp, Inc. (Maryland)

Why is Heritage Financial Corp. (Washington) ?

High Profitability with a Net Interest Margin of 0.56%

With a growth in Interest of NAN%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 0.96%
OPERATING PROFIT MARGIN(Q) Highest at 32.56 %
NII(Q) Highest at USD 58.36 MM

With ROA of 0.42%, it has a attractive valuation with a 0.86 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 5.63%, its profits have risen by 11.5% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 92.68%

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

Underperformed the market in the last 1 year

The stock has generated a return of 5.63% in the last 1 year, much lower than market (S&P 500) returns of 17.45%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Heritage Financial Corp. (Washington) 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 Financial Corp. (Washington) for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Heritage Financial Corp. (Washington)

5.35%

1.52

31.38%

S&P 500

17.78%

0.90

19.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.95%

EBIT Growth (5y)

11.06%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

48.98%

Pledged Shares

Institutional Holding

92.68%

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

0.86

EV to EBIT

13.00

EV to EBITDA

12.70

EV to Capital Employed

0.86

EV to Sales

2.42

PEG Ratio

1.16

Dividend Yield

ROCE (Latest)

6.62%

ROE (Latest)

5.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

18What is working for the Company

ROCE(HY)

Highest at 0.96%

OPERATING PROFIT MARGIN(Q)

Highest at 32.56 %

NII(Q)

Highest at USD 58.36 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

OPERATING PROFIT(Q)

Highest at USD 25.68 MM

PRE-TAX PROFIT(Q)

Highest at USD 25.68 MM

NET PROFIT(Q)

Highest at USD 22.24 MM

EPS(Q)

Highest at USD 0.65

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 66.83 MM

ROCE(HY)

Lowest at 0.96%

Here's what is working for Heritage Financial Corp. (Washington)

Operating Profit Margin

Highest at 32.56 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

NII

Highest at USD 58.36 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Operating Profit

Highest at USD 25.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 25.68 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 25.68 MM has Grown at 48.32%

over average net sales of the previous four periods of USD 17.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 22.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 22.24 MM has Grown at 55.44%

over average net sales of the previous four periods of USD 14.31 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.65

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend per share

Highest at USD 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

CASA

Highest at 13.1%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Heritage Financial Corp. (Washington)

Operating Cash Flow

Lowest at USD 66.83 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)