HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
18.68 USD
+0.15 (+0.81%)
18.85 USD
+0.17 (+0.91%)
HTGC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 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 decent growth rate and is not valued too expensively.
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.
- 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 78.90% of its industry peers.
- With a decent Return On Equity value of 14.04%, HTGC is doing good in the industry, outperforming 74.26% of the companies in the same industry.
- HTGC has a Return On Invested Capital of 6.11%. This is in the better half of the industry: HTGC outperforms 74.26% of its industry peers.
- HTGC had an Average Return On Invested Capital over the past 3 years of 6.33%. This 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
- Looking at the Profit Margin, with a value of 59.47%, HTGC belongs to the top of the industry, outperforming 92.83% of the companies in the same industry.
- HTGC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 64.99%, HTGC belongs to the top of the industry, outperforming 98.31% of the companies in the same industry.
- HTGC's Operating Margin has improved in the last couple of years.
- HTGC has a Gross Margin of 81.23%. This is amongst the best in the industry. HTGC outperforms 85.65% of its industry peers.
- HTGC's Gross Margin has been stable in the last couple of years.
| 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
- Compared to 1 year ago, HTGC has more shares outstanding
- HTGC has more shares outstanding than it did 5 years ago.
- HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
- HTGC has an Altman-Z score of 1.31. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.31, HTGC is doing good in the industry, outperforming 61.60% of the companies in the same industry.
- A Debt/Equity ratio of 0.98 indicates that HTGC is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.98, HTGC perfoms like the industry average, outperforming 50.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
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.
- HTGC has a Current ratio (0.95) which is in line with its industry peers.
- A Quick Ratio of 0.95 indicates that HTGC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.95, HTGC is in line with its industry, outperforming 40.93% 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.
- The Revenue for HTGC has decreased by -16.09% in the past year. This is quite bad
- 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 1.33% 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-2.17%
EPS Next 2Y1.19%
EPS Next 3Y1.33%
EPS Next 5YN/A
Revenue Next Year6.74%
Revenue Next 2Y8.17%
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
- Based on the Price/Earnings ratio of 9.68, the valuation of HTGC can be described as reasonable.
- HTGC's Price/Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 71.31% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, HTGC is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.08 indicates a reasonable valuation of HTGC.
- 79.75% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (25.72), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
- HTGC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 78.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.32 |
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)1.32
EPS Next 2Y1.19%
EPS Next 3Y1.33%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.52%, HTGC is a good candidate for dividend investing.
- HTGC's Dividend Yield is a higher than the industry average which is at 5.88.
- HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.52% |
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.
- The dividend of HTGC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.41%
EPS Next 2Y1.19%
EPS Next 3Y1.33%
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 -2.17% in the next year.