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Heritage Commerce Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Heritage Commerce has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Heritage Commerce's Piotroski F-Score or its related term are showing as below:

NAS:HTBK' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 6

2
9

During the past 13 years, the highest Piotroski F-Score of Heritage Commerce was 9. The lowest was 2. And the median was 6.


Heritage Commerce Piotroski F-Score Historical Data

The historical data trend for Heritage Commerce's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Heritage Commerce Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 3.00 8.00 7.00 5.00

Heritage Commerce Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 6.00 5.00 6.00

Competitive Comparison

For the Banks - Regional subindustry, Heritage Commerce's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Heritage Commerce Piotroski F-Score Distribution

For the Banks industry and Financial Services sector, Heritage Commerce's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Heritage Commerce's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 11.623 + 11.204 + 8.813 + 13.718 = $45.4 Mil.
Cash Flow from Operations was 22.857 + 10.256 + 10.863 + 18.285 = $62.3 Mil.
Revenue was 36.261 + 37.259 + 37.045 + 40.59 = $151.2 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(4606.785 + 4634.114 + 5001.39 + 5072.875 + 5463.002) / 5 = $4955.6332 Mil.
Total Assets at the begining of this year (Sep20) was $4,606.8 Mil.
Long-Term Debt & Capital Lease Obligation was $39.9 Mil.
Total Assets was $5,463.0 Mil.
Total Liabilities was $4,872.9 Mil.
Net Income was 5.685 + 1.861 + 10.618 + 11.197 = $29.4 Mil.

Revenue was 41.622 + 41.773 + 37.018 + 36.76 = $157.2 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(3182.471 + 4109.463 + 4078.162 + 4614.401 + 4606.785) / 5 = $4118.2564 Mil.
Total Assets at the begining of last year (Sep19) was $3,182.5 Mil.
Long-Term Debt & Capital Lease Obligation was $39.7 Mil.
Total Assets was $4,606.8 Mil.
Total Liabilities was $4,029.0 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Heritage Commerce's current Net Income (TTM) was 45.4. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Heritage Commerce's current Cash Flow from Operations (TTM) was 62.3. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep20)
=45.358/4606.785
=0.00984591

ROA (Last Year)=Net Income/Total Assets (Sep19)
=29.361/3182.471
=0.00922585

Heritage Commerce's return on assets of this year was 0.00984591. Heritage Commerce's return on assets of last year was 0.00922585. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Heritage Commerce's current Net Income (TTM) was 45.4. Heritage Commerce's current Cash Flow from Operations (TTM) was 62.3. ==> 62.3 > 45.4 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=39.878/4955.6332
=0.008047

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=39.693/4118.2564
=0.0096383

Heritage Commerce's gearing of this year was 0.008047. Heritage Commerce's gearing of last year was 0.0096383. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep21)=Total Assets/Total Liabilities
=5463.002/4872.884
=1.12110241

Current Ratio (Last Year: Sep20)=Total Assets/Total Liabilities
=4606.785/4028.978
=1.1434128

Heritage Commerce's current ratio of this year was 1.12110241. Heritage Commerce's current ratio of last year was 1.1434128. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Heritage Commerce's number of shares in issue this year was 60.76. Heritage Commerce's number of shares in issue last year was 60.141. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=45.358/151.155
=0.30007608

Net Margin (Last Year: TTM)=Net Income/Revenue
=29.361/157.173
=0.18680689

Heritage Commerce's net margin of this year was 0.30007608. Heritage Commerce's net margin of last year was 0.18680689. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep20)
=151.155/4606.785
=0.03281139

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=157.173/3182.471
=0.0493871

Heritage Commerce's asset turnover of this year was 0.03281139. Heritage Commerce's asset turnover of last year was 0.0493871. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Heritage Commerce has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Heritage Commerce  (NAS:HTBK) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Heritage Commerce Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Heritage Commerce's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Heritage Commerce Business Description

Heritage Commerce logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6022
Traded in Other Exchanges
Address
224 Airport Parkway, San Jose, CA, USA, 95110
Heritage Commerce Corporation operates as a bank holding company. The company, through its subsidiary, offers commercial banking services to small and medium-sized businesses and their owners, managers, and employees. It operates through two segments, namely Banking and Factoring. The bank generates a majority of its revenue from the Banking segment.
Executives
Cabral Bruce H director 150 ALMADEN BOULEVARD SAN JOSE CA 95113
Benito Michael Eugene officer: EVP 150 ALMADNE BLVD. SAN JOSE CA 95113
Moles Robert director HERITAGE COMMERCE CORP 150 ALMADEN BLVD. SAN JOSE CA 95113
Webster Ranson W director C/O HERITAGE BANK OF COMMERCE 150 ALMADEN BLVD SAN JOSE CA 95113
Bisceglia Frank G director C/O HERITAGE COMMERCE CORP 150 ALMADEN BLVD SAN JOSE CA 95113
Jones Robertson Clay Jr officer: EVP 150 ALMADEN BOULEVARD SAN JOSE CA 95113
Wilton Keith director, officer: President and CEO 150 ALMADEN BLVD. SAN JOSE CA 95113
Kaczmarek Walter Theodore director HERITAGE COMMERCE CORP 150 ALMADEN BLVD. SAN JOSE CA 95113
Conner Jack W director HERITAGE COMMERCE CORP 150 ALMADEN BLVD. SAN JOSE CA 95113
Biagini Komas Julianne M director 150 ALMADEN BOULEVARD SAN JOSE CA 95113
Mcgovern Lawrence D officer: EVP/CFO C/O HERITAGE COMMERCE CORP 150 ALMADEN BLVD SAN JOSE CA 95113
Dinapoli Jason Philip director 1875 CENTURY PARK EAST SUITE 1400 LOS ANGELES CA 90067
Roden Laura director 150 ALMADEN BLVD. SAN JOSE CA 95113
Butsch Margo G. officer: EVP/Chief Credit Officer 150 ALMADEN BLVD SAN JOSE CA 95113
Sutton Marina Park director 150 ALMADEN BOULEVARD SAN JOSE CA 95113

Heritage Commerce Headlines

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