HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - NYSE:HTGC - US4270965084 - Common Stock
19.31 USD
+0.19 (+0.99%)
Taking everything into account, HTGC scores 4 out of 10 in our fundamental rating. HTGC was compared to 237 industry peers in the Capital Markets industry. There are concerns on the financial health of HTGC while its profitability can be described as average. HTGC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HTGC had positive earnings in the past year.
HTGC had a negative operating cash flow in the past year.
HTGC had positive earnings in each of the past 5 years.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.11%, HTGC is doing good in the industry, outperforming 75.95% of the companies in the same industry.
The Return On Equity of HTGC (12.16%) is better than 66.24% of its industry peers.
The Return On Invested Capital of HTGC (6.19%) is better than 71.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HTGC is in line with the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.16% | ||
| ROIC | 6.19% |
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
With an excellent Profit Margin value of 51.90%, HTGC belongs to the best of the industry, outperforming 94.09% of the companies in the same industry.
HTGC's Profit Margin has declined in the last couple of years.
HTGC has a Operating Margin of 65.58%. This is amongst the best in the industry. HTGC outperforms 97.89% of its industry peers.
HTGC's Operating Margin has improved in the last couple of years.
HTGC has a better Gross Margin (81.71%) than 86.50% 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 | 65.58% | ||
| PM (TTM) | 51.9% | ||
| GM | 81.71% |
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
HTGC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HTGC has been increased compared to 5 years ago.
The debt/assets ratio for HTGC is higher compared to a year ago.
2.2 Solvency
HTGC has an Altman-Z score of 1.37. 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 1.37. This is in the better half of the industry: HTGC outperforms 62.03% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that HTGC is somewhat dependend on debt financing.
HTGC's Debt to Equity ratio of 0.96 is in line compared to the rest of the industry. HTGC outperforms 52.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.26. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
HTGC has a Current ratio (1.26) which is in line with its industry peers.
A Quick Ratio of 1.26 indicates that HTGC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, HTGC is in line with its industry, outperforming 56.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -6.70% in the last year.
The Earnings Per Share has been growing slightly by 7.35% on average over the past years.
HTGC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 13.00% on average per year.
EPS 1Y (TTM)-6.7%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-1.96%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%9.96%
3.2 Future
The Earnings Per Share is expected to decrease by -0.01% on average over the next years.
Based on estimates for the next years, HTGC will show a quite strong growth in Revenue. The Revenue will grow by 9.25% on average per year.
EPS Next Y-2.64%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue Next Year5.77%
Revenue Next 2Y6.19%
Revenue Next 3Y9.25%
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
A Price/Earnings ratio of 9.90 indicates a reasonable valuation of HTGC.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than the industry average as 75.11% of the companies are valued more expensively.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
HTGC is valuated reasonably with a Price/Forward Earnings ratio of 9.57.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than 76.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than 78.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
HTGC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.18%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is comparable with the industry average which is at 7.96.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 7.41%!
HTGC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
119.58% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
The Dividend Rate of HTGC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP119.58%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
NYSE:HTGC (9/17/2025, 11:51:57 AM)
19.31
+0.19 (+0.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.88%
Inst Owner Change82.45%
Ins Owners1.81%
Ins Owner Change-1.19%
Market Cap3.51B
Analysts81.43
Price Target21.64 (12.07%)
Short Float %2.67%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.18% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP119.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.49%
Min EPS beat(2)-5.01%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-2.07%
Min EPS beat(4)-5.11%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)0.24%
EPS beat(12)7
Avg EPS beat(12)2.38%
EPS beat(16)8
Avg EPS beat(16)1.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)3.19%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)5.31%
Revenue beat(12)8
Avg Revenue beat(12)4.88%
Revenue beat(16)8
Avg Revenue beat(16)2.97%
PT rev (1m)0%
PT rev (3m)5.8%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.57 | ||
| P/S | 6.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.63 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 16.58 |
EPS(TTM)1.95
EY10.1%
EPS(NY)2.02
Fwd EY10.45%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)-1.67
OCFYN/A
SpS2.77
BVpS11.84
TBVpS11.84
PEG (NY)N/A
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.16% | ||
| ROCE | 7.84% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.28% | ||
| OM | 65.58% | ||
| PM (TTM) | 51.9% | ||
| GM | 81.71% | ||
| 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%
ROICexcg growth 3Y12.85%
ROICexcg 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-Score2
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.24 | ||
| Cap/Depr | 17.51% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.37 |
F-Score2
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)-6.7%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-1.96%
EPS Next Y-2.64%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%9.96%
Revenue Next Year5.77%
Revenue Next 2Y6.19%
Revenue Next 3Y9.25%
Revenue Next 5YN/A
EBIT growth 1Y-18.1%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-362.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-365.1%
OCF growth 3YN/A
OCF growth 5YN/A