HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
18.77 USD
-0.1 (-0.53%)
18.9 USD
+0.13 (+0.69%)
Taking everything into account, HTGC scores 4 out of 10 in our fundamental rating. HTGC was compared to 238 industry peers in the Capital Markets industry. While HTGC is still in line with the averages on profitability rating, there are concerns on its financial health. HTGC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- HTGC had positive earnings in the past year.
- In the past year HTGC has reported a negative cash flow from operations.
- Each year in the past 5 years HTGC has been profitable.
- 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
- HTGC's Return On Assets of 6.97% is fine compared to the rest of the industry. HTGC outperforms 78.99% of its industry peers.
- The Return On Equity of HTGC (14.04%) is better than 74.37% 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 74.37% 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 7.27%.
| 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
- With an excellent Profit Margin value of 59.47%, HTGC belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- In the last couple of years the Profit Margin of HTGC has declined.
- HTGC has a Operating Margin of 64.99%. This is amongst the best in the industry. HTGC outperforms 98.32% of its industry peers.
- HTGC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 81.23%, HTGC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- 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
- 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
- Based on the Altman-Z score of 1.32, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.32, HTGC is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
- HTGC has a Debt/Equity ratio of 0.98. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
- HTGC has a Debt to Equity ratio of 0.98. This is comparable to the rest of the industry: HTGC outperforms 50.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- HTGC has a Current 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.
- The Current ratio of HTGC (0.95) is comparable to the rest of the industry.
- A Quick Ratio of 0.95 indicates that HTGC may have some problems paying its short term obligations.
- HTGC has a Quick ratio (0.95) which is comparable to the rest of the 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.
- The Revenue for HTGC has decreased by -16.09% in the past year. This is quite bad
- HTGC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.00% yearly.
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
- Based on estimates for the next years, HTGC will show a small growth in Earnings Per Share. The EPS will grow by 1.19% on average per year.
- The Revenue is expected to grow by 8.69% on average over the next years. This is quite good.
EPS Next Y-2.12%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue Next Year6.74%
Revenue Next 2Y8.17%
Revenue Next 3Y8.69%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.73 indicates a reasonable valuation of HTGC.
- Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 71.85% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HTGC to the average of the S&P500 Index (27.32), we can say HTGC is valued rather cheaply.
- HTGC is valuated reasonably with a Price/Forward Earnings ratio of 9.13.
- 79.83% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
- HTGC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
- HTGC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 78.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.45 |
4.3 Compensation for Growth
- The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y1.13%
EPS Next 3Y1.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.43%, HTGC is a good candidate for dividend investing.
- HTGC's Dividend Yield is a higher than the industry average which is at 6.10.
- HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.43% |
5.2 History
- The dividend of HTGC is nicely growing with an annual growth rate of 7.41%!
- 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
- HTGC pays out 104.41% of its income as dividend. 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 2Y1.13%
EPS Next 3Y1.19%
HERCULES CAPITAL INC / HTGC FAQ
What is the fundamental rating for HTGC stock?
ChartMill assigns a fundamental rating of 4 / 10 to HTGC.
What is the valuation status of HERCULES CAPITAL INC (HTGC) stock?
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 6 / 10.
How financially healthy is HERCULES CAPITAL INC?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 1 / 10.
Can you provide the expected EPS growth for HTGC stock?
The Earnings per Share (EPS) of HERCULES CAPITAL INC (HTGC) is expected to decline by -2.12% in the next year.