Heritage Financial Corporation (HFWA) Financial Ratios
29 years of historical data (1997–2025) · Financial Services · Banks - Regional
EV/EBITDA
↑
11.79
↓-13% vs avg
5yr avg: 13.58
30Y Low0.3·High20.6
P/FCF
↓
11.08
-2% vs avg
5yr avg: 11.27
30Y Low6.1·High39.3
P/B Ratio
↓
1.04
+1% vs avg
5yr avg: 1.03
30Y Low0.7·High2.3
ROE
↓
7.6%
-9% vs avg
5yr avg: 8.3%
30Y Low0%·High16%
Debt/EBITDA
↓
0.53
↓-83% vs avg
5yr avg: 3.17
30Y Low0.1·High8.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HFWA Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Heritage Financial Corporation trades at 14.2x earnings, 7% above its 5-year average of 13.3x, sitting at the 37th percentile of its historical range. This is roughly in line with the Financial Services sector median P/E of 13.6x. On a free-cash-flow basis, the stock trades at 11.1x P/FCF, roughly in line with the 5-year average of 11.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $949M | $814M | $855M | $754M | $1.1B | $879M | $846M | $1.0B | $1.1B | $919M | $765M |
| Enterprise Value | $939M | $803M | $1.1B | $1.1B | $1.1B | $-772092880 | $159M | $859M | $941M | $961M | $782M |
| P/E Ratio → | 14.24 | 12.07 | 19.76 | 12.22 | 13.26 | 8.95 | 18.13 | 15.46 | 19.81 | 23.88 | 19.81 |
| P/S Ratio | 2.83 | 2.42 | 2.70 | 2.49 | 4.23 | 3.55 | 3.36 | 4.18 | 4.55 | 5.02 | 4.49 |
| P/B Ratio | 1.04 | 0.88 | 0.99 | 0.88 | 1.36 | 1.03 | 1.03 | 1.29 | 1.38 | 1.81 | 1.59 |
| P/FCF | 11.08 | 9.50 | 14.01 | 7.61 | 12.01 | 13.22 | 13.36 | 13.17 | 15.66 | 13.05 | 16.18 |
| P/OCF | 10.01 | 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
HFWA EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Heritage Financial Corporation's enterprise value stands at 11.8x EBITDA, 13% below its 5-year average of 13.6x. This is roughly in line with the Financial Services sector median of 11.4x.
| 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 | 11.79 | 10.09 | 20.60 | 13.38 | 10.25 | -7.58 | 3.00 | 8.66 | 10.98 | 13.32 | 11.70 |
| EV / EBIT | 12.07 | 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 |
HFWA Profitability
Margins and return-on-capital ratios measuring operating efficiency
Heritage Financial Corporation earns an operating margin of 23.2%, above the Financial Services sector average of 20.3%. ROE of 7.6% is modest, trailing the sector median of 9.0%. ROIC of 5.2% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
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% |
Return on Capital
| 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% |
HFWA Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Heritage Financial Corporation carries a Debt/EBITDA ratio of 0.5x, which is very conservative (88% below the sector average of 4.3x). The company holds a net cash position — cash of $53M exceeds total debt of $42M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of just 0.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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)
HFWA Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.18x means Heritage Financial Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.25x to 1.18x over the past 3 years.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
HFWA Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Heritage Financial Corporation returns 4.0% to shareholders annually — split between a 3.4% dividend yield and 0.6% buyback yield. A payout ratio of 48.3% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 7.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 3.4% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 48.3% | 48.3% | 73.5% | 49.9% | 36.0% | 29.5% | 62.0% | 45.8% | 48.6% | 43.8% | 55.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.0% | 8.3% | 5.1% | 8.2% | 7.5% | 11.2% | 5.5% | 6.5% | 5.0% | 4.2% | 5.0% |
| FCF Yield | 9.0% | 10.5% | 7.1% | 13.1% | 8.3% | 7.6% | 7.5% | 7.6% | 6.4% | 7.7% | 6.2% |
| Buyback Yield | 0.6% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 4.0% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $34M | $35M | $35M | $35M | $36M | $36M | $37M | $35M | $30M | $30M |
Peer Comparison
Compare HFWA with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HFWAYou | $949M | 14.2 | 11.8 | 11.1 | 72.4% | 23.2% | 7.6% | 5.2% | 0.5 |
 COLB | $7B | 13.3 | 12.0 | 10.3 | 67.7% | 23.4% | 8.5% | 5.4% | 4.5 |
 WAFD | $3B | 13.9 | 13.3 | 13.5 | 50.9% | 20.5% | 7.5% | 3.9% | 6.1 |
 HOMB | $5B | 11.5 | 9.3 | 11.3 | 77.3% | 43.8% | 11.5% | 8.7% | 1.5 |
 NWBI | $2B | 15.7 | 14.1 | 14.9 | 68.3% | 18.8% | 7.2% | 5.6% | 2.7 |
 CVBF | $3B | 13.7 | 13.2 | 13.0 | 79.9% | 43.8% | 9.3% | 6.8% | 3.5 |
 GBCI | $6B | 24.3 | 24.3 | 18.1 | 69.0% | 22.9% | 6.4% | 3.5% | 7.9 |
 SFNC | $3B | -7.4 | — | 7.5 | 5.8% | -84.2% | -11.4% | -9.1% | — |
 FFIN | $5B | 18.5 | 11.4 | 15.3 | 71.8% | 37.5% | 14.4% | 12.4% | 0.1 |
 FIS | $20B | 50.9 | 6.4 | 7.0 | 36.9% | 16.5% | 2.6% | 6.0% | 1.1 |
 FISI | $735M | 10.3 | 10.5 | 54.1 | 61.7% | 24.2% | 12.5% | 7.7% | 3.7 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 28 years · Updated daily
Consensus-Based Analysis Tools
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
HFWA — Frequently Asked Questions
Quick answers to the most common questions about buying HFWA stock.
What is Heritage Financial Corporation's P/E ratio?
Heritage Financial Corporation's current P/E ratio is 14.2x. The historical average is 22.9x. This places it at the 37th percentile of its historical range.
What is Heritage Financial Corporation's EV/EBITDA?
Heritage Financial Corporation's current EV/EBITDA is 11.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.
What is Heritage Financial Corporation's ROE?
Heritage Financial Corporation's return on equity (ROE) is 7.6%. The historical average is 8.4%.
Is HFWA stock overvalued?
Based on historical data, Heritage Financial Corporation is trading at a P/E of 14.2x. This is at the 37th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Heritage Financial Corporation's dividend yield?
Heritage Financial Corporation's current dividend yield is 3.40% with a payout ratio of 48.3%.
What are Heritage Financial Corporation's profit margins?
Heritage Financial Corporation has 72.4% gross margin and 23.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Heritage Financial Corporation have?
Heritage Financial Corporation's Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.