HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
18.51 USD
-0.03 (-0.16%)
18.72 USD
+0.21 (+1.13%)
HTGC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. While HTGC belongs to the best of the industry regarding profitability, there are concerns on its financial health. HTGC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
In the past year HTGC has reported a negative cash flow from operations.
HTGC had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: HTGC reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.97%, HTGC belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
The Return On Equity of HTGC (14.04%) is better than 73.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.11%, HTGC is in the better half of the industry, outperforming 74.79% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HTGC is in line with the industry average of 7.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROIC | 6.11% |
ROA(3y)6.62%
ROA(5y)7.02%
ROE(3y)12.91%
ROE(5y)13.88%
ROIC(3y)6.33%
ROIC(5y)5.69%
1.3 Margins
HTGC has a Profit Margin of 59.47%. This is amongst the best in the industry. HTGC outperforms 92.44% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
HTGC has a better Operating Margin (64.99%) than 98.32% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC has a Gross Margin of 81.23%. This is amongst the best in the industry. HTGC outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of HTGC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.99% | ||
| PM (TTM) | 59.47% | ||
| GM | 81.23% |
OM growth 3Y7.36%
OM growth 5Y4.3%
PM growth 3Y-4.94%
PM growth 5Y-4%
GM growth 3Y2.12%
GM growth 5Y1.42%
2. Health
2.1 Basic Checks
The number of shares outstanding for HTGC has been increased compared to 1 year ago.
The number of shares outstanding for HTGC has been increased compared to 5 years ago.
HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
HTGC has an Altman-Z score of 1.30. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
HTGC has a Altman-Z score of 1.30. This is in the better half of the industry: HTGC outperforms 61.34% of its industry peers.
HTGC has a Debt/Equity ratio of 0.98. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, HTGC is in line with its industry, outperforming 50.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.95 indicates that HTGC may have some problems paying its short term obligations.
With a Current ratio value of 0.95, HTGC perfoms like the industry average, outperforming 40.34% of the companies in the same industry.
HTGC has a Quick Ratio of 0.95. This is a bad value and indicates that HTGC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.95, HTGC perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -7.21% in the last year.
HTGC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
Looking at the last year, HTGC shows a very negative growth in Revenue. The Revenue has decreased by -16.09% in the last year.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.21%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-3.92%
Revenue 1Y (TTM)-16.09%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%10.26%
3.2 Future
The Earnings Per Share is expected to grow by 1.19% on average over the next years.
HTGC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.69% yearly.
EPS Next Y-2.12%
EPS Next 2Y1.25%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y7.45%
Revenue Next 3Y8.69%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HTGC is valuated reasonably with a Price/Earnings ratio of 9.59.
73.53% of the companies in the same industry are more expensive than HTGC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HTGC to the average of the S&P500 Index (26.39), we can say HTGC is valued rather cheaply.
HTGC is valuated reasonably with a Price/Forward Earnings ratio of 8.98.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than 79.41% of the companies in the same industry.
HTGC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.31 |
4.3 Compensation for Growth
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y1.25%
EPS Next 3Y1.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.63%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.43, HTGC pays a bit more dividend than its industry peers.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
5.2 History
On average, the dividend of HTGC grows each year by 7.41%, which is quite nice.
HTGC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
104.41% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
HTGC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP104.41%
EPS Next 2Y1.25%
EPS Next 3Y1.19%
18.51
-0.03 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change-37.35%
Ins Owners1.73%
Ins Owner Change-1.27%
Market Cap3.36B
Revenue(TTM)516.85M
Net Income(TTM)307.37M
Analysts84.29
Price Target21.36 (15.4%)
Short Float %3.04%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP104.41%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.18%
Min EPS beat(2)0.34%
Max EPS beat(2)4.02%
EPS beat(4)2
Avg EPS beat(4)-1.44%
Min EPS beat(4)-5.11%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)-0.29%
EPS beat(12)7
Avg EPS beat(12)1.81%
EPS beat(16)9
Avg EPS beat(16)1.52%
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)0.25%
Max Revenue beat(2)3.19%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)5.13%
Revenue beat(12)8
Avg Revenue beat(12)4.68%
Revenue beat(16)9
Avg Revenue beat(16)3.06%
PT rev (1m)-0.74%
PT rev (3m)-1.33%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.98 | ||
| P/S | 6.51 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.54 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)1.93
EY10.43%
EPS(NY)2.06
Fwd EY11.13%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)-2.2
OCFYN/A
SpS2.84
BVpS12.05
TBVpS12.05
PEG (NY)N/A
PEG (5Y)1.31
Graham Number22.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROCE | 7.74% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 6.16% | ||
| OM | 64.99% | ||
| PM (TTM) | 59.47% | ||
| GM | 81.23% | ||
| FCFM | N/A |
ROA(3y)6.62%
ROA(5y)7.02%
ROE(3y)12.91%
ROE(5y)13.88%
ROIC(3y)6.33%
ROIC(5y)5.69%
ROICexc(3y)6.48%
ROICexc(5y)5.92%
ROICexgc(3y)6.5%
ROICexgc(5y)5.93%
ROCE(3y)8.02%
ROCE(5y)7.21%
ROICexgc growth 3Y12.85%
ROICexgc growth 5Y8.03%
ROICexc growth 3Y12.87%
ROICexc growth 5Y8%
OM growth 3Y7.36%
OM growth 5Y4.3%
PM growth 3Y-4.94%
PM growth 5Y-4%
GM growth 3Y2.12%
GM growth 5Y1.42%
F-Score1
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 17.58% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.3 |
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)222.71%
Cap/Depr(5y)145.29%
Cap/Sales(3y)0.12%
Cap/Sales(5y)0.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.21%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-3.92%
EPS Next Y-2.12%
EPS Next 2Y1.25%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.09%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%10.26%
Revenue Next Year5.37%
Revenue Next 2Y7.45%
Revenue Next 3Y8.69%
Revenue Next 5YN/A
EBIT growth 1Y-18.05%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-212.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-213.28%
OCF growth 3YN/A
OCF growth 5YN/A
HERCULES CAPITAL INC / HTGC FAQ
What is the fundamental rating for HTGC stock?
ChartMill assigns a fundamental rating of 4 / 10 to HTGC.
Can you provide the valuation status for HERCULES CAPITAL INC?
ChartMill assigns a valuation rating of 5 / 10 to HERCULES CAPITAL INC (HTGC). This can be considered as Fairly Valued.
How profitable is HERCULES CAPITAL INC (HTGC) stock?
HERCULES CAPITAL INC (HTGC) has a profitability rating of 7 / 10.
Can you provide the financial health for HTGC stock?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 1 / 10.
What is the earnings growth outlook for HERCULES CAPITAL INC?
The Earnings per Share (EPS) of HERCULES CAPITAL INC (HTGC) is expected to decline by -2.12% in the next year.