A Business at a Glance
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HERITAGE COMMERCE CORP
HTBK
HERITAGE COMMERCE CORP (HTBK) has a current P/E ratio of 19.6, compared to its historical median P/E of 11.7. The stock is currently considered Expensive based on its historical valuation range.
HERITAGE COMMERCE CORP (HTBK) has a 5-year average return on invested capital (ROIC) of 8.2%. This is below average and may indicate limited pricing power.
HERITAGE COMMERCE CORP (HTBK) has a market capitalization of $795M. It is classified as a small-cap stock.
Yes, HERITAGE COMMERCE CORP (HTBK) pays a dividend with a trailing twelve-month yield of 4.02%. The company also returns capital through share buybacks, with a buyback yield of 0.51%.
Based on historical P/E analysis, HERITAGE COMMERCE CORP (HTBK) appears expensive. The current P/E of 19.6 is 68% above its historical median of 11.7. The estimated fair value CAGR (P/E method) is 1.7%.
HERITAGE COMMERCE CORP (HTBK) operates in the State Commercial Banks industry, within the Financials sector.
HERITAGE COMMERCE CORP (HTBK) reported annual revenue of $269 million in its most recent fiscal year, based on SEC EDGAR filings.
We are a bank holding company formed in 1997 as the sole shareholder of Heritage Bank of Commerce (“HBC” or the “Bank”), a California-chartered, FDIC-insured community-focused business bank headquartered in San Jose, California, since its formation in 1994. We provide a full line of banking services and products to business and individual clients, with a focus on small and medium-sized business and their owners, managers and employees. We have an extensive suite of online banking services, but our business is based largely on our network of sixteen full-service branches around the San Francisco Bay and Silicon Valley areas of coastal Central California, including locations in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo and Santa Clara counties.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 269M | 269M | 251M | 243M | 199M | 163M |
| Net Income | 48M | 48M | 41M | 64M | 67M | 48M |
| EPS | $0.78 | $0.78 | $0.66 | $1.05 | $1.09 | $0.79 |
| Free Cash Flow | 61M | 61M | 37M | 71M | 69M | 57M |
| ROIC | 6.8% | 6.8% | 5.9% | 9.6% | 10.5% | 8.1% |
| Gross Margin | 73.5% | 73.5% | 68.6% | 80.1% | 95.1% | 93.7% |
| Debt/Equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.00 |
| Dividends/Share | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 | $0.52 |
| Operating Income | 2.9M | 2.9M | 57M | 90M | 94M | 66M |
| Operating Margin | 1.1% | 1.1% | 22.5% | 37.2% | 47.4% | 40.4% |
| ROE | 6.8% | 6.8% | 5.9% | 9.9% | 10.8% | 8.1% |
| Shares Outstanding | 61M | 61M | 61M | 61M | 61M | 60M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 67M | 88M | 106M | 117M | 139M | 153M | 160M | 163M | 199M | 243M | 251M | 269M | 269M |
| Gross Margin | 96.3% | 97.2% | 95.8% | 95.3% | 89.1% | 92.4% | 86.4% | 93.7% | 95.1% | 80.1% | 68.6% | 73.5% | 73.5% |
| 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 | 26M | 35M | 33M | 36M | 44M | 51M | 51M | 52M | 55M | 57M | 64M | 67M | 67M |
| EBIT | 1.3M | 1.9M | 2.4M | 2.6M | 2.7M | 2.2M | 2.1M | 66M | 94M | 90M | 57M | 2.9M | 2.9M |
| Op. Margin | 1.9% | 2.1% | 2.2% | 2.3% | 2.0% | 1.4% | 1.3% | 40.4% | 47.4% | 37.2% | 22.5% | 1.1% | 1.1% |
| Net Income | 12M | 14M | 25M | 24M | 35M | 40M | 35M | 48M | 67M | 64M | 41M | 48M | 48M |
| Net Margin | 18.5% | 15.7% | 23.2% | 20.4% | 25.3% | 26.5% | 22.0% | 29.3% | 33.5% | 26.5% | 16.1% | 17.8% | 17.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 6.4% | 6.0% | 9.7% | 8.4% | 10.4% | 8.6% | 6.1% | 8.1% | 10.5% | 9.6% | 5.9% | 6.8% | 6.8% |
| ROE | 6.9% | 6.4% | 9.7% | 9.0% | 11.1% | 8.6% | 6.1% | 8.1% | 10.8% | 9.9% | 5.9% | 6.8% | 6.8% |
| ROA | 0.8% | 0.7% | 1.0% | 0.9% | 1.2% | 1.1% | 0.8% | 0.9% | 1.2% | 1.2% | 0.7% | 0.8% | 0.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 19M | 28M | 26M | 41M | 49M | 50M | 57M | 57M | 70M | 73M | 39M | 62M | 62M |
| Free Cash Flow | 19M | 27M | 25M | 41M | 48M | 50M | 54M | 57M | 69M | 71M | 37M | 61M | 61M |
| Owner Earnings | 17M | 26M | 24M | 38M | 45M | 46M | 51M | 51M | 64M | 68M | 34M | 58M | 58M |
| CapEx | 817K | 1.0M | 480K | 649K | 187K | 203K | 3.2M | 252K | 783K | 1.7M | 1.6M | 377K | 377K |
| Maint. CapEx | 725K | 685K | 763K | 1.4M | 1.9M | 2.7M | 3.8M | 3.0M | 2.6M | 2.4M | 2.2M | 1.8M | 1.8M |
| Growth CapEx | 92K | 322K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 725K | 685K | 763K | 1.4M | 1.9M | 2.7M | 3.8M | 3.0M | 2.6M | 2.4M | 2.2M | 1.8M | 1.8M |
| CapEx/OCF | 4.2% | 3.5% | 1.9% | 1.6% | 0.4% | 0.4% | 5.5% | 0.4% | 1.1% | 2.3% | 4.2% | N/A | 0.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 5.8M | 11M | 14M | 15M | 18M | 23M | 31M | 31M | 31M | 32M | 32M | 32M | 32M |
| Dividend Yield | 3.9% | 6.1% | 5.7% | 4.2% | 4.1% | 5.4% | 8.4% | 5.9% | 5.2% | 6.5% | 6.2% | N/A | 4.0% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.0M | 4.0M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% | 0.5% |
| Stock-Based Comp | 1.7M | 2.0M | 1.6M | 1.8M | 1.8M | 1.9M | 2.2M | 2.5M | 3.2M | 2.4M | 2.8M | 2.1M | 2.1M |
| Debt Repayment | 32M | 0 | 0 | 0 | 0 | 114K | 328K | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 8.5M | -341M | -266M | -669M | -624M | -862M | -1.4B | -1.4B | -757M | -407M | -968M | -647M | -647M |
| Cash & Equiv. | 23M | 344M | 266M | 316M | 165M | 457M | 1.1B | 1.3B | 307M | 408M | 968M | 647M | 647M |
| Long-Term Debt | 32M | N/A | N/A | 39M | N/A | N/A | N/A | N/A | 39M | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.17 | 0.01 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | 0.06 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | 0.0 |
| Equity | 184M | 245M | 260M | 271M | 367M | 577M | 578M | 598M | 632M | 673M | 690M | 709M | 709M |
| Total Assets | 1.6B | 2.4B | 2.6B | 2.8B | 3.1B | 4.1B | 4.6B | 5.5B | 5.2B | 5.2B | 5.6B | 5.8B | 5.8B |
| Total Liabilities | 1.4B | 2.1B | 2.3B | 2.6B | 2.7B | 3.5B | 4.1B | 4.9B | 4.5B | 4.5B | 5.0B | 5.1B | 5.1B |
| Intangibles | 3.3M | 8.5M | 6.9M | 5.6M | 12M | 20M | 17M | 14M | 11M | 8.6M | 6.4M | 4.6M | 4.6M |
| Retained Earnings | 33M | 39M | 53M | 62M | 79M | 97M | 95M | 111M | 146M | 179M | 188M | 204M | 204M |
| 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 | 0.42 | 0.48 | 0.72 | 0.62 | 0.84 | 0.84 | 0.59 | 0.79 | 1.09 | 1.05 | 0.66 | 0.78 | 0.78 |
| Owner EPS | 0.57 | 0.90 | 0.69 | 1.00 | 1.07 | 0.95 | 0.86 | 0.85 | 1.05 | 1.11 | 0.55 | 0.94 | 0.94 |
| Book Value | 6.23 | 8.54 | 7.61 | 7.06 | 8.74 | 11.97 | 9.66 | 9.90 | 10.36 | 10.96 | 11.23 | 11.56 | 11.56 |
| Cash Flow/Share | 0.66 | 0.99 | 0.76 | 1.08 | 1.15 | 1.05 | 0.96 | 0.94 | 1.14 | 1.19 | 0.63 | 1.01 | 0.81 |
| Dividends/Share | 0.18 | 0.32 | 0.36 | 0.40 | 0.44 | 0.48 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 |
| Shares Out. | 29.6M | 28.7M | 34.2M | 38.4M | 42.1M | 48.2M | 59.8M | 60.4M | 61.1M | 61.4M | 61.4M | 61.3M | 61.3M |
| Valuation | |||||||||||||
| P/E Ratio | 13.0 | 15.8 | 13.1 | 16.9 | 9.3 | 10.9 | 11.7 | 12.1 | 9.9 | 8.5 | 13.4 | N/A | 16.6 |
| P/FCF | 8.7 | 7.9 | 12.7 | 9.9 | 6.8 | 8.8 | 7.6 | 10.2 | 9.5 | 7.7 | 14.6 | N/A | 13.0 |
| EV/EBIT | N/A | 126.4 | N/A | N/A | N/A | 189.0 | N/A | N/A | N/A | N/A | N/A | N/A | 51.2 |
| Price/Book | 0.9 | 0.9 | 1.2 | 1.5 | 0.9 | 0.8 | 0.7 | 1.0 | 1.0 | 0.8 | 0.8 | N/A | 1.1 |
| Price/Sales | 2.3 | 2.2 | 2.3 | 3.3 | 3.4 | 2.9 | 2.4 | N/A | N/A | N/A | N/A | N/A | 3.0 |
| FCF Yield | 11.5% | 11.9% | 7.9% | 10.1% | 14.8% | 11.3% | 13.2% | 9.8% | 10.5% | 13.1% | 6.9% | N/A | 7.7% |
| Market Cap | 162M | 232M | 322M | 403M | 328M | 443M | 412M | 577M | 657M | 546M | 544M | 0 | 795M |
| Avg. Price | 4.96 | 6.13 | 6.98 | 9.41 | 10.71 | 8.69 | 6.19 | 8.77 | 9.87 | 8.01 | 8.41 | 0.00 | 12.96 |
| Year-End Price | 5.46 | 7.56 | 9.44 | 10.48 | 7.80 | 9.19 | 6.88 | 9.55 | 10.75 | 8.89 | 8.85 | 0.00 | 12.96 |
HERITAGE COMMERCE CORP passes 4 of 9 quality checks, suggesting mixed fundamentals.
HERITAGE COMMERCE CORP trades at 19.6x trailing earnings, compared to its 15-year median P/E of 11.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 21.3x vs a median of 9.5x. The company's 5-year average ROIC is 8.2% with a gross margin of 82.2%. Total shareholder yield (dividends + buybacks) is 4.5%. At current prices, the estimated annualized return to fair value is -6.5%.
HERITAGE COMMERCE CORP (HTBK) has a net profit margin of 17.8%. This is a healthy margin.
HERITAGE COMMERCE CORP (HTBK) generated $61 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HERITAGE COMMERCE CORP (HTBK) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
HERITAGE COMMERCE CORP (HTBK) reported earnings per share (EPS) of $0.78 in its most recent fiscal year.
HERITAGE COMMERCE CORP (HTBK) has a return on equity (ROE) of 6.8%. This indicates moderate shareholder returns.
HERITAGE COMMERCE CORP (HTBK) has a 5-year average gross margin of 82.2%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for HERITAGE COMMERCE CORP (HTBK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HERITAGE COMMERCE CORP (HTBK) has a book value per share of $11.56, based on its most recent annual SEC filing.