Heritage Commerce Return On Asset vs. EBITDA
| HTBK Stock | USD 10.43 0.07 0.68% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 1.09 | 1.14 |
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| Net Profit Margin | 0.35 | 0.3366 |
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| Operating Profit Margin | 0.57 | 0.4722 |
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| Pretax Profit Margin | 0.5 | 0.4722 |
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| Return On Assets | 0.013 | 0.0124 |
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| Return On Equity | 0.0492 | 0.0958 |
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For Heritage Commerce profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Heritage Commerce to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Heritage Commerce Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Heritage Commerce's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Heritage Commerce Corp over time as well as its relative position and ranking within its peers.
Heritage |
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Heritage Commerce. If investors know Heritage will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Heritage Commerce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.34) | Dividend Share 0.52 | Earnings Share 0.71 | Revenue Per Share 2.763 | Quarterly Revenue Growth (0.11) |
The market value of Heritage Commerce Corp is measured differently than its book value, which is the value of Heritage that is recorded on the company's balance sheet. Investors also form their own opinion of Heritage Commerce's value that differs from its market value or its book value, called intrinsic value, which is Heritage Commerce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Heritage Commerce's market value can be influenced by many factors that don't directly affect Heritage Commerce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Heritage Commerce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Heritage Commerce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Heritage Commerce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Heritage Commerce Corp EBITDA vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Heritage Commerce's current stock value. Our valuation model uses many indicators to compare Heritage Commerce value to that of its competitors to determine the firm's financial worth. Heritage Commerce Corp is rated below average in return on asset category among its peers. It is rated below average in ebitda category among its peers totaling about 11,445,443 of EBITDA per Return On Asset. At this time, Heritage Commerce's EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Heritage Commerce by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Heritage EBITDA vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Heritage Commerce |
| = | 0.0079 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Heritage Commerce |
| = | 90.42 K |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Heritage EBITDA Comparison
Heritage Commerce is currently under evaluation in ebitda category among its peers.
Heritage Commerce Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Heritage Commerce, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Heritage Commerce will eventually generate negative long term returns. The profitability progress is the general direction of Heritage Commerce's change in net profit over the period of time. It can combine multiple indicators of Heritage Commerce, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -12.7 M | -12.1 M | |
| Operating Income | 90.4 K | 85.9 K | |
| Income Before Tax | 90.4 K | 85.9 K | |
| Total Other Income Expense Net | 90.4 M | 94.9 M | |
| Net Income | 64.4 M | 67.7 M | |
| Income Tax Expense | 26 K | 24.7 K | |
| Net Income Applicable To Common Shares | 76.5 M | 80.4 M | |
| Net Income From Continuing Ops | 64.4 M | 50.4 M | |
| Net Interest Income | 183.2 M | 143.5 M | |
| Interest Income | 234.3 M | 156.4 M | |
| Change To Netincome | -1 M | -968.7 K | |
| Net Income Per Share | 1.06 | 1.11 | |
| Income Quality | 1.13 | 1.89 | |
| Net Income Per E B T | 0.71 | 0.91 |
Heritage Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Heritage Commerce. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Heritage Commerce position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Heritage Commerce's important profitability drivers and their relationship over time.
Use Heritage Commerce in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Heritage Commerce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Heritage Commerce will appreciate offsetting losses from the drop in the long position's value.Heritage Commerce Pair Trading
Heritage Commerce Corp Pair Trading Analysis
The ability to find closely correlated positions to Heritage Commerce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Heritage Commerce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Heritage Commerce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Heritage Commerce Corp to buy it.
The correlation of Heritage Commerce is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Heritage Commerce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Heritage Commerce Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Heritage Commerce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Heritage Commerce position
In addition to having Heritage Commerce in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Risk vs Return Analysis. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Heritage Commerce's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Heritage Commerce Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Heritage Commerce's income statement, its balance sheet, and the statement of cash flows.