Latest Ratios: P/E Ratio 15.0x · EV/EBITDA 12.4x · ROE 7.6%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.0B | $814M | $855M | $754M | $1.1B | $879M | $846M | $1.0B | $1.1B | $919M | $765M |
| Enterprise Value | $991M | $803M | $1.1B | $1.1B | $1.1B | $-772092880 | $159M | $859M | $941M | $961M | $782M |
| P/E Ratio → | 15.02 | 12.07 | 19.76 | 12.22 | 13.26 | 8.95 | 18.13 | 15.46 | 19.81 | 23.88 | 19.81 |
| P/S Ratio | 2.98 | 2.42 | 2.70 | 2.49 | 4.23 | 3.55 | 3.36 | 4.18 | 4.55 | 5.02 | 4.49 |
| P/B Ratio | 1.10 | 0.88 | 0.99 | 0.88 | 1.36 | 1.03 | 1.03 | 1.29 | 1.38 | 1.81 | 1.59 |
| P/FCF | 11.68 | 9.50 | 14.01 | 7.61 | 12.01 | 13.22 | 13.36 | 13.17 | 15.66 | 13.05 | 16.18 |
| P/OCF | 10.56 | 8.58 | 13.26 | 6.89 | 11.50 | 12.64 | 12.03 | 11.32 | 11.63 | 12.51 | 14.16 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.39 | 3.60 | 3.47 | 4.09 | -3.12 | 0.63 | 3.43 | 4.07 | 5.24 | 4.60 |
| EV / EBITDA | 12.44 | 10.09 | 20.60 | 13.38 | 10.25 | -7.58 | 3.00 | 8.66 | 10.98 | 13.32 | 11.70 |
| EV / EBIT | 12.73 | 10.33 | 21.87 | 14.41 | 10.57 | -6.42 | 2.99 | 10.60 | 14.64 | 15.97 | 14.84 |
| EV / FCF | — | 9.38 | 18.73 | 10.60 | 11.62 | -11.61 | 2.51 | 10.81 | 14.02 | 13.64 | 16.55 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.4% | 72.4% | 66.4% | 79.0% | 97.4% | 109.0% | 80.4% | 91.0% | 92.4% | 93.1% | 93.6% |
| Operating Margin | 23.2% | 23.2% | 16.5% | 24.1% | 38.7% | 48.7% | 21.1% | 32.4% | 27.8% | 32.8% | 31.0% |
| Net Profit Margin | 20.1% | 20.1% | 13.6% | 20.4% | 31.9% | 39.6% | 18.5% | 27.0% | 23.0% | 22.8% | 22.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.6% | 7.6% | 5.0% | 7.5% | 9.9% | 11.7% | 5.7% | 8.6% | 8.4% | 8.4% | 8.2% |
| ROA | 1.0% | 1.0% | 0.6% | 0.9% | 1.1% | 1.4% | 0.8% | 1.2% | 1.1% | 1.0% | 1.0% |
| ROIC | 5.2% | 5.2% | 3.0% | 4.9% | 8.3% | 10.0% | 4.6% | 7.3% | 6.6% | 7.2% | 7.1% |
| ROCE | 4.1% | 4.1% | 3.5% | 6.1% | 11.7% | 14.0% | 6.4% | 10.1% | 9.2% | 10.0% | 9.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.47 | 0.61 | 0.09 | 0.08 | 0.07 | 0.05 | 0.07 | 0.28 | 0.25 |
| Debt / EBITDA | 0.53 | 0.53 | 7.30 | 6.65 | 0.66 | 0.71 | 1.07 | 0.41 | 0.60 | 2.00 | 1.82 |
| Net Debt / Equity | — | -0.01 | 0.33 | 0.35 | -0.04 | -1.93 | -0.84 | -0.23 | -0.14 | 0.08 | 0.04 |
| Net Debt / EBITDA | -0.13 | -0.13 | 5.19 | 3.78 | -0.35 | -16.21 | -12.93 | -1.89 | -1.28 | 0.57 | 0.26 |
| Debt / FCF | — | -0.12 | 4.72 | 2.99 | -0.39 | -24.83 | -10.84 | -2.36 | -1.64 | 0.59 | 0.37 |
| Interest Coverage | 0.87 | 0.87 | 0.52 | 1.23 | 12.32 | 17.08 | 3.99 | 4.46 | 5.18 | 7.21 | 8.78 |
Net cash position: cash ($53M) exceeds total debt ($42M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.18 | 1.18 | 0.16 | 0.25 | 0.28 | 0.43 | 0.30 | 0.29 | 0.28 | 0.29 | 0.30 |
| Quick Ratio | 1.18 | 1.18 | 0.16 | 0.25 | 0.28 | 0.43 | 0.30 | 0.29 | 0.28 | 0.29 | 0.30 |
| Cash Ratio | 0.01 | 0.01 | 0.02 | 0.04 | 0.02 | 0.26 | 0.13 | 0.05 | 0.04 | 0.03 | 0.03 |
| Asset Turnover | — | 0.05 | 0.04 | 0.04 | 0.04 | 0.03 | 0.04 | 0.05 | 0.04 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 4.0% | 3.7% | 4.1% | 2.7% | 3.3% | 3.4% | 3.0% | 2.5% | 2.0% | 2.8% |
| Payout Ratio | 48.3% | 48.3% | 73.5% | 49.9% | 36.0% | 29.5% | 62.0% | 45.8% | 48.6% | 43.8% | 55.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 8.3% | 5.1% | 8.2% | 7.5% | 11.2% | 5.5% | 6.5% | 5.0% | 4.2% | 5.0% |
| FCF Yield | 8.6% | 10.5% | 7.1% | 13.1% | 8.3% | 7.6% | 7.5% | 7.6% | 6.4% | 7.7% | 6.2% |
| Buyback Yield | 0.6% | 0.7% | 2.6% | 0.9% | 0.3% | 2.6% | 2.3% | 0.8% | 0.2% | 0.1% | 0.4% |
| Total Shareholder Yield | 3.8% | 4.7% | 6.3% | 5.0% | 3.0% | 5.9% | 5.7% | 3.8% | 2.6% | 2.1% | 3.2% |
| Shares Outstanding | — | $34M | $35M | $35M | $35M | $36M | $36M | $37M | $35M | $30M | $30M |
Regional CRE concentration exposure
According to current market data, HFWA trades at a P/B of 1.10, which suggests investors are assigning a scarcity premium to the bank's independent status and conservative balance sheet relative to larger, more integrated regional peers operating within the Pacific Northwest corridor.
The current P/B multiple appears to reflect market confidence in the bank's ability to maintain a stable deposit franchise despite broader industry headwinds. However, the implied ROTCE expectations may be challenged if the bank cannot improve its current sub-2% ROE levels, suggesting that the valuation may be more defensive than growth-oriented.
Based on the provided quarterly data, HFWA's ROE has remained constrained between 0.7% and 2.4% over the last ten quarters, indicating that the bank's profitability is currently strained by a combination of low asset utilization and a conservative leverage profile that limits bottom-line expansion.
The DuPont decomposition suggests that the bank's profitability is heavily reliant on its NIM and non-interest income, yet these drivers have struggled to overcome the drag from a high efficiency ratio. Investors should monitor whether the recent recovery in fee-based income can sustainably lift ROE above these historical lows.
As reported in recent financial statements, the efficiency ratio reached 56.9% in 2026Q1, a significant deterioration from the sub-50% levels seen in late 2025, which suggests that rising operating costs are currently outpacing the bank's ability to generate revenue from its interest-earning assets.
The NIM, which has hovered around 0.8% recently, appears to be under pressure from competitive deposit pricing in the Pacific Northwest. This trend warrants further investigation into whether the bank's high-touch service model is becoming prohibitively expensive in the current inflationary environment.
Based on the provided quarterly data, HFWA maintains an equity-to-assets ratio of 0.13, which, when paired with an exceptionally low debt-to-equity profile of 0.05%, indicates a fortress-like capital position that provides a significant buffer against potential credit volatility in the regional market.
While this conservative capital structure protects the bank from liquidity shocks, it also suggests that management is prioritizing stability over aggressive capital deployment. This approach may limit the bank's ability to drive higher ROE through increased leverage, potentially frustrating investors seeking more aggressive capital return policies.
The P/E ratio is frequently misapplied to HFWA, as it obscures the significant volatility introduced by periodic provision reversals and the lumpy nature of SBA loan sales, which can artificially inflate or deflate earnings in any given quarter without reflecting the bank's underlying operational health.
Investors should instead focus on P/TBV and core pre-provision net revenue (PPNR) to better gauge the bank's long-term franchise value. Relying on P/E in this context may lead to erroneous conclusions about the bank's earnings quality, as it fails to account for the non-cash accounting adjustments inherent in the CECL model.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying HFWA stock.
Heritage Financial Corporation's current P/E ratio is 15.0x. The historical average is 22.9x. This places it at the 44th percentile of its historical range.
Heritage Financial Corporation's current EV/EBITDA is 12.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.
Heritage Financial Corporation's return on equity (ROE) is 7.6%. The historical average is 8.4%.
Based on historical data, Heritage Financial Corporation is trading at a P/E of 15.0x. This is at the 44th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Heritage Financial Corporation's current dividend yield is 3.22% with a payout ratio of 48.3%.
Heritage Financial Corporation has 72.4% gross margin and 23.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Heritage Financial Corporation's Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.