HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - New York Stock Exchange, Inc. - US4270965084 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HTGC. HTGC was compared to 228 industry peers in the Capital Markets industry. HTGC has an excellent profitability rating, but there are concerns on its financial health. HTGC is not valued too expensively and it also shows a decent growth rate. Finally HTGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
HTGC had a negative operating cash flow in the past year.
Each year in the past 5 years HTGC has been profitable.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.18%, HTGC belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
HTGC has a Return On Equity of 17.68%. This is amongst the best in the industry. HTGC outperforms 84.21% of its industry peers.
HTGC's Return On Invested Capital of 8.51% is amongst the best of the industry. HTGC outperforms 82.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HTGC is in line with the industry average of 7.06%.
The last Return On Invested Capital (8.51%) for HTGC is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 17.68% | ||
| ROIC | 8.51% |
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
The Profit Margin of HTGC (57.20%) is better than 91.23% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
The Operating Margin of HTGC (65.84%) is better than 98.25% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC's Gross Margin of 82.77% is amongst the best of the industry. HTGC outperforms 87.28% 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 | 65.84% | ||
| PM (TTM) | 57.2% | ||
| GM | 82.77% |
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.
HTGC has more shares outstanding than it did 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 1.55, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC's Altman-Z score of 1.55 is fine compared to the rest of the industry. HTGC outperforms 66.67% of its industry peers.
HTGC has a Debt/Equity ratio of 0.89. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, HTGC perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.99. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.99, HTGC is in the better half of the industry, outperforming 68.86% of the companies in the same industry.
HTGC has a Quick Ratio of 1.99. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
HTGC's Quick ratio of 1.99 is fine compared to the rest of the industry. HTGC outperforms 69.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -3.83% in the last year.
Measured over the past 5 years, HTGC shows a small growth in Earnings Per Share. The EPS has been growing by 7.35% on average per year.
The Revenue has grown by 33.55% in the past year. This is a very strong growth!
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.83%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)33.55%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-33.39%
3.2 Future
HTGC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.95% yearly.
HTGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% yearly.
EPS Next Y-0.48%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y6.77%
Revenue Next 3Y1.21%
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.
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 8.73 indicates a reasonable valuation of HTGC.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
HTGC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 8.77, which indicates a very decent valuation of HTGC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 71.93% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HTGC indicates a rather cheap valuation: HTGC is cheaper than 83.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
The excellent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.12%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.65, 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 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
5.2 History
On average, the dividend of HTGC grows each year by 7.41%, which is quite nice.
HTGC has been paying a dividend for at least 10 years, so it has a reliable track record.
HTGC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years5
Div Non Decr Years13
5.3 Sustainability
HTGC pays out 86.25% of its income as dividend. 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.
DP86.25%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
17.54
+0.31 (+1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.5%
Inst Owner Change-0.76%
Ins Owners1.86%
Ins Owner Change4.72%
Market Cap3.04B
Analysts80
Price Target22.38 (27.59%)
Short Float %2.71%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP86.25%
Div Incr Years5
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.64%
Min EPS beat(2)-5.11%
Max EPS beat(2)-2.17%
EPS beat(4)0
Avg EPS beat(4)-2.69%
Min EPS beat(4)-5.11%
Max EPS beat(4)-1.08%
EPS beat(8)4
Avg EPS beat(8)1.47%
EPS beat(12)6
Avg EPS beat(12)1.6%
EPS beat(16)7
Avg EPS beat(16)0.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.53%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.06%
Revenue beat(8)5
Avg Revenue beat(8)6.09%
Revenue beat(12)7
Avg Revenue beat(12)4.18%
Revenue beat(16)7
Avg Revenue beat(16)2.52%
PT rev (1m)0%
PT rev (3m)5.16%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.77 | ||
| P/S | 4.94 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)2.01
EY11.46%
EPS(NY)2
Fwd EY11.4%
FCF(TTM)-0.69
FCFYN/A
OCF(TTM)-0.68
OCFYN/A
SpS3.55
BVpS11.49
TBVpS11.49
PEG (NY)N/A
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 17.68% | ||
| ROCE | 10.78% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.78% | ||
| ROICexgc | 8.79% | ||
| OM | 65.84% | ||
| PM (TTM) | 57.2% | ||
| GM | 82.77% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 151.29% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 5.2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 1.55 |
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)-3.83%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-12.5%
EPS Next Y-0.48%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue 1Y (TTM)33.55%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-33.39%
Revenue Next Year4.63%
Revenue Next 2Y6.77%
Revenue Next 3Y1.21%
Revenue Next 5YN/A
EBIT growth 1Y33.2%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-276.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-272.95%
OCF growth 3YN/A
OCF growth 5YN/A