Heritage FinancialHFWA +0.90%63 ROE % is 7.44% as of Mar. 2026, which is 10% below its 10-year median of 8.27. 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 1,523 Banks companies, Heritage Financial ranks worse than 66.91% on this metric.
The historical rank and industry rank for Heritage Financial's ROE % or its related term are showing as below:
HFWA'
s ROE % Range Over the Past 10 Years
Min: 5.04 Med: 8.27 Max: 11.71
Current: 7.7
During the past 13 years, Heritage Financial's highest ROE % was 11.71%. The lowest was 5.04%. And the median was 8.27%.
HFWA's ROE % is ranked worse than 66.91% of 1523
companies
in the Banks industry
Industry Median: 10.22
vs HFWA: 7.70
Heritage Financial (NAS:HFWA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Heritage Financial ROE % Related Terms
Heritage Financial ROE % Historical Data
* Premium members only.
The historical data trend for Heritage Financial's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Heritage Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Heritage Financial's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Heritage Financial (HFWA) has a ROE % of 7.44% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Heritage Financial and its competitors. This is 10% below median its historical median of 8.27. Over the past decade, Heritage Financial's ROE % has ranged from 5.04 to 11.71. According to the industry distribution chart, Heritage Financial ranks #1019 out of 1523 companies in the Banks industry, placing it in the top 66.9%.
Is Heritage Financial's ROE % too high?
Heritage Financial's current ROE % of 7.44% is 10% below median its 10-year median of 8.27. Over the past 10 years, this metric has ranged from a low of 5.04 to a high of 11.71. The Banks industry median ROE % is 10.22. Heritage Financial's value of 7.44% is 27.2% below this industry median. Based on the distribution chart, Heritage Financial ranks #1019 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 ROE % compare to PFBC and MCB?
According to the Banks industry distribution chart, Heritage Financial ranks #1019 out of 1523 companies for ROE %. This places Heritage Financial in the lower half of its industry. The industry median ROE % is 10.22. Heritage Financial's value of 7.44% is 27.2% below this benchmark. Historically, Heritage Financial's own ROE % has ranged from 5.04 to 11.71 over the past decade. While the company's 10-year median is 8.27 vs. the industry median of 10.22, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heritage Financial's current ROE % of 7.44% is 27.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Heritage Financial and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heritage Financial's current ROE % is 7.44%, which is 10% below median its own 10-year median of 8.27. 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 $29.25 — trading 7.5% above its estimated fair value. The current ROE % is 7.44%, which is 10% below median its 10-year median of 8.27 and 27.2% below the Banks industry median of 10.22. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Heritage Financial (HFWA), the current ROE % is 7.44% 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 $29.25 is trading 7.5% above its estimated GF Value™ of $27.20.
GuruFocus considers Heritage Financial to be Fairly Valued.
Key valuation signals for HFWA:
ROE %: 7.44% (10% below median its 10-year median of 8.27)
GF Value™: $27.20 vs. price of $29.25 (7.5% above fair value)
Industry Position: 27.2% below the Banks median (#1019 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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