Latest Ratios: P/E Ratio 17.2x · EV/EBITDA 11.9x · ROE 6.8%. (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 | $828M | $741M | $577M | $608M | $794M | $725M | $534M | $615M | $478M | $592M | $494M |
| Enterprise Value | $847M | $759M | $-351346740 | $240M | $527M | $-541664340 | $-557633970 | $197M | $353M | $314M | $228M |
| P/E Ratio → | 17.24 | 15.40 | 14.21 | 9.45 | 11.93 | 15.11 | 15.03 | 15.27 | 13.50 | 24.71 | 20.04 |
| P/S Ratio | 3.11 | 2.78 | 2.30 | 2.50 | 3.99 | 4.45 | 3.33 | 4.02 | 3.43 | 5.08 | 4.66 |
| P/B Ratio | 1.17 | 1.05 | 0.84 | 0.90 | 1.26 | 1.21 | 0.92 | 1.07 | 1.30 | 2.18 | 1.90 |
| P/FCF | 13.63 | 12.19 | 15.45 | 8.53 | 11.50 | 12.80 | 9.86 | 12.26 | 9.89 | 14.53 | 19.43 |
| P/OCF | 13.43 | 12.02 | 14.81 | 8.33 | 11.37 | 12.75 | 9.31 | 12.21 | 9.85 | 14.30 | 19.07 |
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 | — | 2.85 | -1.40 | 0.98 | 2.65 | -3.32 | -3.48 | 1.29 | 2.53 | 2.70 | 2.15 |
| EV / EBITDA | 11.89 | 10.66 | -5.84 | 2.55 | 5.37 | -7.74 | -10.37 | 3.29 | 6.88 | 6.00 | 4.92 |
| EV / EBIT | 12.51 | 11.21 | -6.20 | 2.65 | 5.58 | -8.22 | -11.36 | 3.50 | 7.26 | 6.25 | 5.18 |
| EV / FCF | — | 12.49 | -9.41 | 3.36 | 7.63 | -9.57 | -10.30 | 3.93 | 7.30 | 7.73 | 8.96 |
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 | 72.6% | 72.6% | 67.7% | 78.7% | 95.1% | 97.5% | 86.4% | 92.4% | 89.1% | 95.3% | 95.8% |
| Operating Margin | 25.4% | 25.4% | 22.5% | 37.2% | 47.4% | 40.4% | 30.6% | 36.8% | 34.9% | 43.2% | 41.5% |
| Net Profit Margin | 18.0% | 18.0% | 16.1% | 26.5% | 33.5% | 29.3% | 22.0% | 26.5% | 25.3% | 20.4% | 25.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.8% | 6.8% | 5.9% | 9.9% | 10.8% | 8.1% | 6.1% | 8.6% | 11.1% | 9.0% | 10.8% |
| ROA | 0.8% | 0.8% | 0.7% | 1.2% | 1.2% | 0.9% | 0.8% | 1.1% | 1.2% | 0.9% | 1.1% |
| ROIC | 6.9% | 6.9% | 5.9% | 9.8% | 10.8% | 7.9% | 6.0% | 8.3% | 10.2% | 13.2% | 13.0% |
| ROCE | 3.1% | 3.1% | 6.9% | 12.2% | 14.4% | 10.5% | 8.0% | 11.0% | 13.6% | 17.6% | 17.4% |
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 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.11 | 0.14 | — |
| Debt / EBITDA | 0.56 | 0.56 | 0.66 | 0.42 | 0.40 | 0.57 | 0.74 | 0.67 | 0.77 | 0.75 | — |
| Net Debt / Equity | — | 0.03 | -1.35 | -0.55 | -0.42 | -2.12 | -1.89 | -0.72 | -0.34 | -1.02 | -1.02 |
| Net Debt / EBITDA | 0.25 | 0.25 | -15.42 | -3.92 | -2.72 | -18.11 | -20.30 | -6.97 | -2.44 | -5.28 | -5.75 |
| Debt / FCF | — | 0.30 | -24.86 | -5.17 | -3.87 | -22.37 | -20.16 | -8.33 | -2.59 | -6.81 | -10.47 |
| Interest Coverage | 0.95 | 0.95 | 0.72 | 1.77 | 10.55 | 9.24 | 5.72 | 5.19 | 6.22 | 9.34 | 13.69 |
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 | 0.27 | 0.27 | 0.25 | 0.19 | 0.20 | 0.31 | 0.36 | 0.27 | 0.25 | 0.29 | 0.27 |
| Quick Ratio | 0.27 | 0.27 | 0.25 | 0.19 | 0.20 | 0.31 | 0.36 | 0.27 | 0.25 | 0.29 | 0.27 |
| Cash Ratio | 0.01 | 0.01 | 0.20 | 0.09 | 0.07 | 0.27 | 0.28 | 0.13 | 0.06 | 0.12 | 0.12 |
| Asset Turnover | — | 0.05 | 0.04 | 0.05 | 0.04 | 0.03 | 0.03 | 0.04 | 0.05 | 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 | 3.8% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 66.7% | 66.7% | 78.6% | 49.3% | 47.3% | 65.6% | 88.0% | 56.2% | 52.3% | 63.9% | 49.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.8% | 6.5% | 7.0% | 10.6% | 8.4% | 6.6% | 6.7% | 6.5% | 7.4% | 4.0% | 5.0% |
| FCF Yield | 7.3% | 8.2% | 6.5% | 11.7% | 8.7% | 7.8% | 10.1% | 8.2% | 10.1% | 6.9% | 5.1% |
| Buyback Yield | 0.5% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 4.3% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $62M | $62M | $61M | $61M | $61M | $60M | $48M | $42M | $39M | $34M |
Regional CRE Concentration
Based on recent financial data, HTBK trades at a P/B of 1.17, which suggests that the market is pricing the bank as a commodity balance sheet rather than a premium franchise, despite its specialized deposit niche and historically conservative capital management approach within the Bay Area.
The current P/B multiple appears to reflect investor caution regarding the bank's ability to generate superior returns on tangible equity in a high-cost operating environment. Investors should monitor whether the bank's specialized HOA deposit base can eventually command a valuation premium as the interest rate cycle stabilizes.
According to quarterly performance metrics, HTBK's ROE has remained constrained at approximately 2.1% as of 2025Q4, indicating that the bank's profitability is currently hampered by a low net interest margin and the high fixed-cost structure inherent in its San Francisco Bay Area branch footprint.
The decomposition of profitability suggests that the bank's reliance on low-cost deposits is being offset by the elevated operating expenses required to maintain its local market presence. The lack of significant leverage, while prudent for solvency, further limits the bank's ability to amplify returns on equity during periods of modest asset growth.
As reported in recent filings, the efficiency ratio reached 45.2% in 2025Q4, signaling that HTBK's operating leverage remains sensitive to the competitive talent market and the high occupancy costs associated with its 17-branch network in the expensive San Jose and Oakland commercial banking corridors.
The stagnation of the net interest margin at 0.9% suggests that the bank is struggling to pass through higher funding costs to its commercial loan clients without sacrificing volume. This indicates that management may face a structural ceiling on operating margins unless they can successfully scale their fee-based factoring and SBA lending units.
Based on the provided balance sheet data, HTBK maintains an equity-to-assets ratio of 0.12 and a minimal debt-to-equity ratio of 0.06%, which indicates a fortress-like capital position that provides significant insulation against regional credit volatility but may be suppressing the bank's overall return on equity.
The bank's conservative capital structure appears to be a deliberate strategic choice to mitigate the risks of its extreme geographic concentration in Bay Area commercial real estate. While this provides a buffer against potential impairments, it warrants investigation into whether management intends to deploy this excess capital toward share buybacks or strategic growth initiatives.
The P/E ratio is frequently misapplied to HTBK, as it obscures the significant earnings volatility caused by periodic provisions for credit losses and the lumpy nature of SBA loan sale gains, which do not necessarily reflect the underlying cash-generating capacity of the bank's core commercial lending operations.
Investors should prioritize P/TBV and ROE over P/E to better assess the bank's valuation relative to its tangible capital base. Relying on P/E in a banking context often leads to distorted conclusions because it fails to account for the capital-intensive nature of the business and the regulatory constraints on earnings distribution.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying HTBK stock.
Heritage Commerce Corp's current P/E ratio is 17.2x. The historical average is 22.8x. This places it at the 46th percentile of its historical range.
Heritage Commerce Corp's current EV/EBITDA is 11.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.3x.
Heritage Commerce Corp's return on equity (ROE) is 6.8%. The historical average is 6.7%.
Based on historical data, Heritage Commerce Corp is trading at a P/E of 17.2x. This is at the 46th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Heritage Commerce Corp's current dividend yield is 3.85% with a payout ratio of 66.7%.
Heritage Commerce Corp has 72.6% gross margin and 25.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Heritage Commerce Corp's Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.