Heritage Financial (HFWA) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Heritage Financial

NasdaqGS•Financial Services•Banks - Regional

$28.90-0.39(-0.01%)Pre-market

Market Cap

$1.17B

P/E

15.0x

P/S

3.1x

P/B

1.1x

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and its owners in the United States. It accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. The company also offers commercial business loans, including lines of credit, term equipment financing and term owner-occupied, and non-owner occupied CRE loans; real estate construction and land development loans, as well as residential construction loans, and commercial and multifamily construction loans; residential real estate loans; and originate loans that are guaranteed by the U.S. SBA, and secured and unsecured consumer loans and lines of credit. In addition, it provides investment advice, online banking, online statements, mobile banking with mobile deposit, Visa debit cards, and access. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.

How this company scores

WeakMetricSide Score: 66/100

Grade capped at D — Interest coverage below 1× (0.9x) — earnings cannot cover interest. Strongest: Growth (22/25); weakest: Balance Sheet & Red Flags (8/25).

Profitability18/25

Growth22/25

Balance Sheet & Red Flags8/25

Cash & Earnings Quality18/25

Strengths

Growing revenueStrong marginsRising earningsCash-backed earnings

Grade capped at D

Interest coverage below 1× (0.9x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 15.0x5y range 7.1x – 19.9x

Currently near its 20-quarter median.

P/S · 3.1x5y range 1.9x – 4.2x

Currently near its 20-quarter median.

P/B · 1.1x5y range 0.7x – 1.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Share Dilution

Red Flag

Shares outstanding increased 19.7% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $1.17B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $381.04M
Q. Revenue: $106.98M
TTM EBITDA: $89.24M
TTM Op. Income: $91.11M
Q. Op. Income: $20.72M
TTM Net Income: $77.90M
Q. Net Income: $17.55M
EPS: $0.42
Shares Out.: $41.08M

$381.04M in TTM revenue grew 17.2% YoY, reaching $106.98M last quarter. TTM EBITDA of $89.24M and TTM operating income of $91.11M show growth is flowing through to the bottom line. TTM net income of $77.90M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 78.6%
EBITDA Margin: 18.1%
Op. Margin: 19.4%
Net Margin: 16.4%

Op. margin of 19.4% is up 1.3% YoY — cost efficiency is improving. Net margin at 16.4% and gross margin of 78.6% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 15.0x
P/S Ratio: 3.1x
P/B Ratio: 1.1x

At 15.0x P/E, the stock trades within typical market levels. P/S of 3.1x and P/B of 1.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $8.43B
Cash: $204.38M
Long-Term Debt: N/A
Book Value: $1.11B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $23.09M
TTM Free Cash Flow: $80.43M
FCF Margin: 21.1%
FCF / Net Income: 1.0

TTM FCF of $80.43M on $23.09M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 2% — an improving trend.