A Business at a Glance
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HERITAGE FINANCIAL CORP /WA/
HFWA
$1.0B
Mkt Cap
$30.16
-0.43%
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a current P/E ratio of 15.4, compared to its historical median P/E of 13.5. The stock is currently considered Fair based on its historical valuation range.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a 5-year average return on invested capital (ROIC) of 8.3%. This is below average and may indicate limited pricing power.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a market capitalization of $1.0B. It is classified as a small-cap stock.
Yes, HERITAGE FINANCIAL CORP /WA/ (HFWA) pays a dividend with a trailing twelve-month yield of 3.14%. The company also returns capital through share buybacks, with a buyback yield of 0.53%.
Based on historical P/E analysis, HERITAGE FINANCIAL CORP /WA/ (HFWA) appears fair. The current P/E of 15.4 is 14% above its historical median of 13.5. The estimated fair value CAGR (P/E method) is 0.1%.
HERITAGE FINANCIAL CORP /WA/ (HFWA) operates in the Savings Institutions, Not Federally Chartered industry, within the Financials sector.
Heritage Financial Corporation is a bank holding company that was incorporated in the State of Washington in August 1997. We are primarily engaged in the business of planning, directing, and coordinating the business activities of our wholly-owned subsidiary and single reportable segment, Heritage Bank. Heritage Bank is headquartered in Olympia, Washington and conducts business from its 50 branch offices located throughout Washington State, the greater Portland, Oregon area, Eugene, Oregon and Boise, Idaho and its one loan production office in Spokane, Washington as of December 31, 2025. Heritage Bank also does business under the Whidbey Island Bank name on Whidbey Island, Washington. On January 31, 2026, Heritage completed its acquisition of Olympic and Olympic’s wholly-owned banking subsidiary, Kitsap Bank. The acquisition added 16 branch offices to the franchise, doing business under the Kitsap Bank name as a division of Heritage Bank.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 336M | 336M | 317M | 303M | 257M | 247M |
| Net Income | 68M | 68M | 43M | 62M | 82M | 98M |
| EPS | $1.96 | $1.96 | $1.24 | $1.75 | $2.31 | $2.73 |
| Free Cash Flow | 86M | 86M | 61M | 99M | 90M | 67M |
| ROIC | 9.5% | 7.6% | 5.0% | 7.5% | 9.9% | 11.7% |
| Gross Margin | 75.8% | 75.8% | 74.4% | 79.0% | 96.6% | 86.1% |
| Debt/Equity | 0.02 | 0.02 | 0.44 | 0.59 | 0.00 | 0.00 |
| Dividends/Share | $0.95 | $0.96 | $0.92 | $0.88 | $0.84 | $0.81 |
| Operating Income | 79M | 79M | 52M | 73M | 99M | 121M |
| Operating Margin | 23.4% | 23.4% | 16.5% | 24.1% | 38.7% | 48.7% |
| ROE | 7.3% | 7.6% | 5.0% | 7.5% | 9.9% | 11.7% |
| Shares Outstanding | 34M | 34M | 35M | 35M | 35M | 36M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 138M | 168M | 170M | 183M | 231M | 250M | 252M | 247M | 257M | 303M | 317M | 336M | 336M |
| Gross Margin | 92.5% | 93.8% | 93.6% | 93.1% | 92.4% | 91.0% | 80.6% | 86.1% | 96.6% | 79.0% | 74.4% | 75.8% | 75.8% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 53M | 58M | 61M | 64M | 87M | 88M | 88M | 89M | 92M | 100M | 99M | 104M | 104M |
| EBIT | 28M | 51M | 53M | 60M | 64M | 81M | 53M | 121M | 99M | 73M | 52M | 79M | 79M |
| Op. Margin | 20.3% | 30.5% | 31.0% | 32.8% | 27.8% | 32.4% | 21.1% | 48.7% | 38.7% | 24.1% | 16.5% | 23.4% | 23.4% |
| Net Income | 21M | 37M | 39M | 42M | 53M | 68M | 47M | 98M | 82M | 62M | 43M | 68M | 68M |
| Net Margin | 15.3% | 22.3% | 22.9% | 22.8% | 23.0% | 27.0% | 18.5% | 39.6% | 31.9% | 20.4% | 13.6% | 20.1% | 20.1% |
| Non-Recurring | -505K | -89K | 1.3M | -13K | -32K | 75K | -88K | 4.4M | 403K | 0 | 1.5M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 6.3% | 8.1% | 8.2% | 8.4% | 8.4% | 8.6% | 5.7% | 11.7% | 9.9% | 7.5% | 5.0% | 7.6% | 9.5% |
| ROE | 6.3% | 8.1% | 8.2% | 8.4% | 8.4% | 8.6% | 5.7% | 11.7% | 9.9% | 7.5% | 5.0% | 7.6% | 7.3% |
| ROA | 0.8% | 1.1% | 1.0% | 1.0% | 1.1% | 1.2% | 0.8% | 1.4% | 1.1% | 0.9% | 0.6% | 1.0% | 1.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 51M | 51M | 54M | 74M | 90M | 92M | 70M | 70M | 94M | 110M | 64M | 95M | 95M |
| Free Cash Flow | 47M | 50M | 47M | 70M | 67M | 79M | 63M | 67M | 90M | 99M | 61M | 86M | 86M |
| Owner Earnings | 46M | 45M | 49M | 66M | 79M | 81M | 58M | 57M | 82M | 96M | 52M | 83M | 83M |
| CapEx | 3.9M | 1.8M | 6.7M | 3.1M | 23M | 13M | 7.0M | 3.0M | 4.0M | 10M | 3.5M | 9.2M | 9.2M |
| Maint. CapEx | 5.4M | 6.1M | 5.3M | 5.2M | 8.2M | 8.7M | 9.0M | 8.4M | 8.2M | 8.7M | 8.2M | 7.0M | 7.0M |
| Growth CapEx | 0 | 0 | 1.4M | 0 | 15M | 4.3M | 0 | 0 | 0 | 1.6M | 0 | 2.2M | 2.2M |
| D&A | 5.4M | 6.1M | 5.3M | 5.2M | 8.2M | 8.7M | 9.0M | 8.4M | 8.2M | 8.7M | 8.2M | 7.0M | 7.0M |
| CapEx/OCF | 7.7% | 3.5% | 12.5% | 4.2% | 28.2% | 14.1% | 9.9% | 4.3% | 4.3% | 9.5% | 5.4% | 9.7% | 9.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 13M | 16M | 22M | 18M | 26M | 31M | 29M | 29M | 29M | 31M | 32M | 33M | 33M |
| Dividend Yield | 3.8% | 4.4% | 5.4% | 3.1% | 2.9% | 3.7% | 4.7% | 3.8% | 3.6% | 4.9% | 4.7% | 4.1% | 3.1% |
| Share Buybacks | 2.6M | 7.7M | 2.9M | 737K | 1.7M | 8.6M | 19M | 23M | 3.2M | 7.0M | 22M | 5.5M | 5.5M |
| Buyback Yield | 0.8% | 2.0% | 0.5% | 0.1% | 0.2% | 1.1% | 2.8% | 3.1% | 0.3% | 1.0% | 2.8% | 0.7% | 0.5% |
| Stock-Based Comp | 20K | 0 | 0 | 2.1M | 2.7M | 3.2M | 3.6M | 3.7M | 3.8M | 4.3M | 4.3M | 4.9M | 4.9M |
| Debt Repayment | 0 | 0 | 581M | 750M | 663M | 446M | 64M | 0 | 50M | 1.4B | 1.6B | 899M | 899M |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | -1.3B | -2.6B | -1.4B | -859M | -498M | -821M | -213M |
| Cash & Equiv. | 122M | 127M | 104M | 103M | 162M | 229M | 743M | 1.7B | 104M | 225M | 117M | 233M | 233M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 20M |
| Debt/Equity | 6.61 | 6.77 | 7.05 | 7.09 | 5.99 | 5.86 | 0.26 | 0.00 | 0.00 | 0.59 | 0.44 | 0.02 | 0.02 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.0 |
| Equity | 455M | 470M | 482M | 508M | 761M | 809M | 820M | 854M | 798M | 853M | 864M | 922M | 922M |
| Total Assets | 3.5B | 3.7B | 3.9B | 4.1B | 5.3B | 5.6B | 6.6B | 7.4B | 7.0B | 7.2B | 7.1B | 7.0B | 7.0B |
| Total Liabilities | 3.0B | 3.2B | 3.4B | 3.6B | 4.6B | 4.7B | 5.8B | 6.6B | 6.2B | 6.3B | 6.2B | 6.0B | 6.0B |
| Intangibles | 11M | 8.8M | 7.4M | 6.1M | 21M | 17M | 13M | 10.0M | 7.2M | 4.8M | 3.2M | 2.0M | 2.0M |
| Retained Earnings | 86M | 108M | 125M | 149M | 176M | 212M | 224M | 293M | 345M | 376M | 387M | 422M | 422M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 0.69 | 1.25 | 1.30 | 1.39 | 1.49 | 1.83 | 1.29 | 2.73 | 2.31 | 1.75 | 1.24 | 1.96 | 1.96 |
| Owner EPS | 1.52 | 1.51 | 1.63 | 2.20 | 2.23 | 2.18 | 1.60 | 1.60 | 2.33 | 2.73 | 1.49 | 2.41 | 2.41 |
| Book Value | 15.02 | 15.67 | 16.09 | 16.91 | 21.36 | 21.92 | 22.73 | 23.79 | 22.51 | 24.18 | 24.75 | 26.75 | 26.75 |
| Cash Flow/Share | 1.70 | 1.71 | 1.80 | 2.45 | 2.54 | 2.51 | 1.95 | 1.94 | 2.66 | 3.10 | 1.85 | 2.75 | 2.16 |
| Dividends/Share | 0.50 | 0.53 | 0.72 | 0.61 | 0.72 | 0.84 | 0.80 | 0.81 | 0.84 | 0.88 | 0.92 | 0.96 | 0.95 |
| Shares Out. | 30.3M | 30.0M | 29.9M | 30.1M | 35.6M | 36.9M | 36.1M | 35.9M | 35.4M | 35.3M | 34.9M | 34.5M | 34.5M |
| Valuation | |||||||||||||
| P/E Ratio | 14.6 | 10.5 | 14.5 | 16.8 | 15.3 | 12.1 | 14.7 | 7.5 | 11.5 | 11.4 | 18.6 | 12.4 | 15.4 |
| P/FCF | 7.6 | 8.0 | 12.0 | 9.9 | 12.1 | 10.3 | 10.8 | 11.0 | 10.4 | 7.1 | 13.2 | 9.7 | 12.1 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10.5 |
| Price/Book | 0.7 | 0.8 | 1.2 | 1.4 | 1.1 | 1.0 | 0.8 | 0.9 | 1.2 | 0.8 | 0.9 | 0.9 | 1.1 |
| Price/Sales | 2.2 | 2.3 | 2.4 | 3.4 | 4.0 | 3.6 | 2.6 | 3.2 | 3.3 | 2.6 | 3.1 | 3.2 | 3.1 |
| FCF Yield | 15.4% | 12.6% | 8.3% | 10.1% | 8.3% | 9.7% | 9.3% | 9.1% | 9.6% | 14.1% | 7.6% | 10.3% | 8.2% |
| Market Cap | 307M | 394M | 566M | 701M | 810M | 815M | 683M | 734M | 943M | 704M | 806M | 835M | 1.0B |
| Avg. Price | 11.17 | 12.16 | 13.24 | 19.84 | 24.76 | 22.48 | 17.11 | 21.30 | 23.11 | 17.80 | 19.31 | 23.11 | 30.16 |
| Year-End Price | 11.98 | 13.15 | 18.91 | 23.31 | 22.75 | 22.08 | 18.91 | 20.44 | 26.61 | 19.94 | 23.12 | 24.22 | 30.16 |
HERITAGE FINANCIAL CORP /WA/ passes 5 of 9 quality checks, suggesting mixed fundamentals.
HERITAGE FINANCIAL CORP /WA/ trades at 15.4x trailing earnings, compared to its 15-year median P/E of 13.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 14.5x vs a median of 10.6x. The company's 5-year average ROIC is 8.3% with a gross margin of 82.4%. Total shareholder yield (dividends + buybacks) is 3.7%. At current prices, the estimated annualized return to fair value is +4.6%.
HERITAGE FINANCIAL CORP /WA/ (HFWA) reported annual revenue of $336 million in its most recent fiscal year, based on SEC EDGAR filings.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a net profit margin of 20.1%. This is a strong margin indicating high profitability.
HERITAGE FINANCIAL CORP /WA/ (HFWA) generated $86 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a debt-to-equity ratio of 0.02. This indicates a conservatively financed balance sheet.
HERITAGE FINANCIAL CORP /WA/ (HFWA) reported earnings per share (EPS) of $1.96 in its most recent fiscal year.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a return on equity (ROE) of 7.6%. This indicates moderate shareholder returns.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a 5-year average gross margin of 82.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for HERITAGE FINANCIAL CORP /WA/ (HFWA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HERITAGE FINANCIAL CORP /WA/ (HFWA) has a book value per share of $26.75, based on its most recent annual SEC filing.
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