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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Banc of California, Inc.

Tompkins Financial Corp.

Community Trust Bancorp, Inc. (Kentucky)

ConnectOne Bancorp, Inc.

Dime Community Bancshares, Inc.

Coastal Financial Corp. (Washington)

Republic Bancorp, Inc. (Kentucky)

Heritage Financial Corp. (Washington)

First Mid Bancshares, Inc.

Premier Financial Corp.

Eagle Bancorp, Inc. (Maryland)

Why is Heritage Financial Corp. (Washington) ?

High Profitability with a Net Interest Margin of -0.49%

Positive results in Jun 25

DIVIDEND PAYOUT RATIO(Y) Highest at 67.68%
DIVIDEND PER SHARE(HY) Highest at USD 0
OPERATING PROFIT MARGIN(Q) Highest at 27.15 %

With ROA of 0.43%, it has a fair valuation with a 0.90 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 -8.63%, its profits have risen by 9.3% ; the PEG ratio of the company is 1.3

High Institutional Holdings at 92.7%

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

Below par performance in long term as well as near term

Along with generating -8.63% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Heritage Financial Corp. (Washington)

-7.28%

1.43

29.82%

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)

7.82%

EBIT Growth (5y)

-0.53%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

74.22%

Pledged Shares

Institutional Holding

92.70%

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

0.90

EV to EBIT

13.27

EV to EBITDA

12.94

EV to Capital Employed

0.90

EV to Sales

2.55

PEG Ratio

1.32

Dividend Yield

ROCE (Latest)

6.80%

ROE (Latest)

5.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

12What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.68%

DIVIDEND PER SHARE(HY)

Highest at USD 0

OPERATING PROFIT MARGIN(Q)

Highest at 27.15 %

NII(Q)

Highest at USD 54.98 MM

NET PROFIT(9M)

Higher at USD 38.05 MM

OPERATING PROFIT(Q)

Highest at USD 21.31 MM

-2What is not working for the Company

GROSS NPA (%)

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

Operating Profit Margin

Highest at 27.15 % 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 54.98 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Profit

At USD 38.05 MM has Grown at 45.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Dividend Payout Ratio

Highest at 67.68% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit

Highest at USD 21.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Net Profit

Higher at USD 38.05 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (USD MM)

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

Non Performing Loans (%)

Highest at 0.39%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)