HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - NYSE:HTGC - US4270965084 - Common Stock
17.27 USD
+0.11 (+0.64%)
17.27 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HTGC. HTGC was compared to 239 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
HTGC had a negative operating cash flow in the past year.
In the past 5 years HTGC has always 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 has a Return On Assets of 6.11%. This is in the better half of the industry: HTGC outperforms 74.90% of its industry peers.
With a decent Return On Equity value of 12.16%, HTGC is doing good in the industry, outperforming 65.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.19%, HTGC is in the better half of the industry, outperforming 71.97% 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 7.55%.
| 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
HTGC has a Profit Margin of 51.90%. This is amongst the best in the industry. HTGC outperforms 93.72% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
HTGC has a better Operating Margin (65.58%) than 98.33% 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 86.61% of its industry peers.
HTGC's Gross Margin has been stable in the last couple of years.
| 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
Compared to 1 year ago, HTGC has more shares outstanding
The number of shares outstanding for HTGC has been increased compared to 5 years ago.
Compared to 1 year ago, HTGC has a worse debt to assets ratio.
2.2 Solvency
HTGC has an Altman-Z score of 1.28. 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 1.28, HTGC is doing good in the industry, outperforming 61.09% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that HTGC is somewhat dependend on debt financing.
The Debt to Equity ratio of HTGC (0.96) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
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.
The Current ratio of HTGC (1.26) is comparable to the rest of the industry.
HTGC has a Quick 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 Quick ratio of 1.26. This is comparable to the rest of the industry: HTGC outperforms 57.32% of its industry peers.
| 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.
HTGC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
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
Based on estimates for the next years, HTGC will show a decrease in Earnings Per Share. The EPS will decrease by -0.01% on average per year.
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y-2.42%
EPS Next 2Y0.31%
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
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
Based on the Price/Earnings ratio of 8.86, 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 75.31% of the companies in the same industry.
HTGC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
Based on the Price/Forward Earnings ratio of 8.54, the valuation of HTGC can be described as reasonable.
78.24% 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 (22.94), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 79.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.56 |
4.3 Compensation for Growth
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y0.31%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
HTGC has a Yearly Dividend Yield of 9.32%, which is a nice return.
HTGC's Dividend Yield is a higher than the industry average which is at 8.49.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
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
HTGC pays out 119.58% of its income as dividend. This is not a sustainable payout ratio.
HTGC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP119.58%
EPS Next 2Y0.31%
EPS Next 3Y-0.01%
17.27
+0.11 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners27.52%
Inst Owner Change-38.02%
Ins Owners1.75%
Ins Owner Change-1.21%
Market Cap3.14B
Analysts81.43
Price Target21.64 (25.3%)
Short Float %2.74%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
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)2.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 8.54 | ||
| P/S | 6.23 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.46 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 15.56 |
EPS(TTM)1.95
EY11.29%
EPS(NY)2.02
Fwd EY11.71%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)-1.67
OCFYN/A
SpS2.77
BVpS11.84
TBVpS11.84
PEG (NY)N/A
PEG (5Y)1.21
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 | 1.28 |
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-2.42%
EPS Next 2Y0.31%
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