Heritage FinancialHFWA +1.03%63 ROA % is 0.98% as of Mar. 2026, which is 6% below its 10-year median of 1.04. GuruFocus rates HFWA with a GF Score™ of 63/100 and a GF Value™ of $27.20 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,528 Banks companies, Heritage Financial ranks better than 50.92% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Heritage Financial's annualizedNet Income for the quarter that ended in Mar. 2026 was $75.8 Mil.
Heritage Financial's average Total Assets over the quarter that ended in Mar. 2026 was $7,732.9 Mil. Therefore, Heritage Financial's annualized ROA % for the quarter that ended in Mar. 2026 was 0.98%.
The historical rank and industry rank for Heritage Financial's ROA % or its related term are showing as below:
HFWA'
s ROA % Range Over the Past 10 Years
Min: 0.61 Med: 1.04 Max: 1.4
Current: 0.99
During the past 13 years, Heritage Financial's highest ROA % was 1.40%. The lowest was 0.61%. And the median was 1.04%.
HFWA's ROA % is ranked better than 50.92% of 1528
companies
in the Banks industry
Industry Median: 0.98
vs HFWA: 0.99
Heritage Financial (NAS:HFWA) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Heritage Financial ROA % Related Terms
Heritage Financial ROA % Historical Data
* Premium members only.
The historical data trend for Heritage Financial's ROA % 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.
For the Banks - Regional subindustry, Heritage Financial's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Heritage Financial's ROA % distribution charts can be found below:
* The bar in red indicates where Heritage Financial's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Heritage Financial (HFWA) has a ROA % of 0.98% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Heritage Financial and its competitors. This is near median its historical median of 1.04. Over the past decade, Heritage Financial's ROA % has ranged from 0.61 to 1.40. According to the industry distribution chart, Heritage Financial ranks #750 out of 1528 companies in the Banks industry, placing it in the top 49.1%.
Is Heritage Financial's ROA % too high?
Heritage Financial's current ROA % of 0.98% is near median its 10-year median of 1.04. Over the past 10 years, this metric has ranged from a low of 0.61 to a high of 1.40. The Banks industry median ROA % is 0.98. Heritage Financial's value of 0.98% is 0% at this industry median. Based on the distribution chart, Heritage Financial ranks #750 out of 1528 companies in the Banks industry, which is above 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 ROA % compare to PFBC and MCB?
According to the Banks industry distribution chart, Heritage Financial ranks #750 out of 1528 companies for ROA %. This puts Heritage Financial in the upper half of its industry. The industry median ROA % is 0.98. Heritage Financial's value of 0.98% is 0% at this benchmark. Historically, Heritage Financial's own ROA % has ranged from 0.61 to 1.40 over the past decade. While the company's 10-year median is 1.04 vs. the industry median of 0.98, Heritage Financial has consistently been at 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 ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,528 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heritage Financial's current ROA % of 0.98% is 0% at 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Heritage Financial and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heritage Financial's current ROA % is 0.98%, which is near median its own 10-year median of 1.04. 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 $27.20, compared to a current price of $29.29 — trading 7.7% above its estimated fair value. The current ROA % is 0.98%, which is near median its 10-year median of 1.04 and 0% at the Banks industry median of 0.98. Heritage Financial's overall GF Score™ is 63/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Heritage Financial (HFWA), the current ROA % is 0.98% 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 $29.29 is trading 7.7% above its estimated GF Value™ of $27.20.
GuruFocus considers Heritage Financial to be Fairly Valued.
Key valuation signals for HFWA:
ROA %: 0.98% (near median its 10-year median of 1.04)
GF Value™: $27.20 vs. price of $29.29 (7.7% above fair value)
Industry Position: 0% at the Banks median (#750 of 1528)
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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