Fact based stock research
Heartland Financial USA (NasdaqGS:HTLF)

US42234Q1022

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Heartland Financial USA stock research in summary

htlf.com

ANALYSIS: With an Obermatt Combined Rank of 25 (worse than 75% compared with investment alternatives), Heartland Financial USA (Regional Banks, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Heartland Financial USA are low in value (priced high) with a consolidated Value Rank of 13 (worse than 87% of alternatives), and are riskily financed (Safety Rank of 41, which means above-average debt burdens) but show above-average growth (Growth Rank of 71). ...read more

RECOMMENDATION: A Combined Rank of 25, is a hold recommendation based on Heartland Financial USA's financial characteristics. As the company Heartland Financial USA shows low value with an Obermatt Value Rank of 13 (87% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 71% of comparable companies (Obermatt Growth Rank is 71). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 41 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Heartland Financial USA, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	13
Growth Rank	71
Safety Rank	41
Combined Rank	25

Country	USA
Industry	Regional Banks
Index	Sound Pay USA, NASDAQ
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Heartland Financial USA

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	69	90	13
GROWTH
GROWTH	60	65	15	71
SAFETY
SAFETY	35	41	69	41
SENTIMENT
SENTIMENT	n/a	59	38	^new
360° VIEW
360° VIEW	n/a	65	50	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Heartland Financial USA is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	69	90	13
GROWTH
GROWTH	60	65	15	71
SAFETY
SAFETY	35	41	69	41
COMBINED
COMBINED	63	69	68	25

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Heartland Financial USA the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 13 (worse than 87% compared with alternatives), Heartland Financial USA shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Heartland Financial USA. Price-to-Sales is 26 which means that the stock price compared with what market professionals expect for future profits is higher than 74% of comparable companies, indicating a low value concerning Heartland Financial USA's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 25, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Heartland Financial USA. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 16 and Dividend Yield, which is lower than 73% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 13, is a sell recommendation based on Heartland Financial USA's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Heartland Financial USA? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Heartland Financial USA? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Heartland Financial USA may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	60	75	89	26
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	70	93	16
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	78	86	69	25
DIVIDEND YIELD
DIVIDEND YIELD	39	39	56	27
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	69	90	13

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Heartland Financial USA; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Heartland Financial USA shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Heartland Financial USA. Profit Growth has a rank of 65 which means that currently professionals expect the company to grow its profits more than 65% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 65, and Stock Returns has a rank of 100 which means that the stock returns have recently been above 100% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 8 (92% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	71	52	70	8
PROFIT GROWTH
PROFIT GROWTH	17	62	54	65
CAPITAL GROWTH
CAPITAL GROWTH	n/a	94	5	65
STOCK RETURNS
STOCK RETURNS	41	25	11	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	60	65	15	71

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Heartland Financial USA.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 41 (better than 41% compared with alternatives), the company Heartland Financial USA has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Heartland Financial USA is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Heartland Financial USA and the other two below average. Refinancing is at 92, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 92% of its competitors. But Leverage is high with a rank of 38, meaning the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. Liquidity is also on the riskier side with a rank of 13, meaning the company generates less profit to service its debt than 87% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 41 (worse than 59% compared with alternatives), Heartland Financial USA has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Heartland Financial USA are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Heartland Financial USA and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	20	18	48	38
REFINANCING
REFINANCING	51	85	88	92
LIQUIDITY
LIQUIDITY	50	34	41	13
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	35	41	69	41

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Heartland Financial USA and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	77	51	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	93	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	89	30	^new
MARKET PULSE
MARKET PULSE	n/a	2	7	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	59	38	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Heartland Financial USA.
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