Heritage FinancialHFWA -1.67%63 Return-on-Tangible-Equity is 10.35% as of Mar. 2026, which is 8% below its 10-year median of 11.24. GuruFocus rates HFWA with a GF Score™ of 63/100 and a GF Value™ of $27.32 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,523 Banks companies, Heritage Financial ranks worse than 53.84% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Heritage Financial's annualized net income for the quarter that ended in Mar. 2026 was $75.8 Mil. Heritage Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $732.5 Mil. Therefore, Heritage Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 10.35%.
The historical rank and industry rank for Heritage Financial's Return-on-Tangible-Equity or its related term are showing as below:
HFWA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.05 Med: 11.24 Max: 16.76
Current: 10.65
During the past 13 years, Heritage Financial's highest Return-on-Tangible-Equity was 16.76%. The lowest was 7.05%. And the median was 11.24%.
HFWA's Return-on-Tangible-Equity is ranked worse than 53.84% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs HFWA: 10.65
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Heritage Financial Return-on-Tangible-Equity Related Terms
Heritage Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Heritage Financial's Return-on-Tangible-Equity 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.
HFWA vs OSBC, UVSP, MCB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Heritage Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Financial Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Heritage Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Heritage Financial's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.35% mean?
Heritage Financial (HFWA) has a Return-on-Tangible-Equity of 10.35% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Heritage Financial and its competitors. This is near median its historical median of 11.24. Over the past decade, Heritage Financial's Return-on-Tangible-Equity has ranged from 7.05 to 16.76. According to the industry distribution chart, Heritage Financial ranks #820 out of 1523 companies in the Banks industry, placing it in the top 53.8%.
Is Heritage Financial's Return-on-Tangible-Equity too high?
Heritage Financial's current Return-on-Tangible-Equity of 10.35% is near median its 10-year median of 11.24. Over the past 10 years, this metric has ranged from a low of 7.05 to a high of 16.76. The Banks industry median Return-on-Tangible-Equity is 11.20. Heritage Financial's value of 10.35% is 7.6% below this industry median. Based on the distribution chart, Heritage Financial ranks #820 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, Heritage Financial has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Heritage Financial's Return-on-Tangible-Equity compare to OSBC and UVSP?
According to the Banks industry distribution chart, Heritage Financial ranks #820 out of 1523 companies for Return-on-Tangible-Equity. This places Heritage Financial in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Heritage Financial's value of 10.35% is 7.6% below this benchmark. Historically, Heritage Financial's own Return-on-Tangible-Equity has ranged from 7.05 to 16.76 over the past decade. While the company's 10-year median is 11.24 vs. the industry median of 11.20, Heritage Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heritage Financial's current Return-on-Tangible-Equity of 10.35% is 7.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Heritage Financial and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heritage Financial's current Return-on-Tangible-Equity is 10.35%, which is near median its own 10-year median of 11.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heritage Financial stock overvalued right now?
Based on GuruFocus' analysis, Heritage Financial (HFWA) is currently considered Fairly Valued. The stock's GF Value™ is $27.32, compared to a current price of $29.70 — trading 8.7% above its estimated fair value. The current Return-on-Tangible-Equity is 10.35%, which is near median its 10-year median of 11.24 and 7.6% below the Banks industry median of 11.20. Heritage Financial's overall GF Score™ is 63/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Heritage Financial (HFWA), the current Return-on-Tangible-Equity is 10.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Heritage Financial (HFWA) Overvalued in 2026?
Based on GuruFocus' analysis, Heritage Financial stock appears to be overvalued.
The current stock price of $29.70 is trading 8.7% above its estimated GF Value™ of $27.32.
GuruFocus considers Heritage Financial to be Fairly Valued.
Key valuation signals for HFWA:
Return-on-Tangible-Equity: 10.35% (near median its 10-year median of 11.24)
GF Value™: $27.32 vs. price of $29.70 (8.7% above fair value)
Industry Position: 7.6% below the Banks median (#820 of 1523)
No single metric tells the full story. See the HFWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heritage Financial Corp is a bank holding company. The company, through its subsidiary, provides commercial lending and deposit relationships with small businesses and their owners in its market areas and attracts deposits from the general public. It accepts various deposit products, such as non-interest demand accounts, money market accounts, savings accounts, and certificates of deposit. Besides, the Bank also makes real estate construction loans, land development loans, and consumer loans, and originates first mortgage loans on residential properties mainly located in its market area. Geographically, all the business activity functions through the region of the United States.
63GF Score
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