HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
18.69 USD
+0.2 (+1.08%)
18.73 USD
+0.04 (+0.21%)
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. HTGC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
In the past year HTGC has reported a negative cash flow from operations.
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
HTGC's Return On Assets of 6.97% is amongst the best of the industry. HTGC outperforms 81.93% of its industry peers.
Looking at the Return On Equity, with a value of 14.04%, HTGC is in the better half of the industry, outperforming 73.95% of the companies in the same industry.
HTGC's Return On Invested Capital of 6.11% is fine compared to the rest of the industry. HTGC outperforms 74.79% 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 7.00%.
| 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 92.44% of the companies in the same industry.
In the last couple of years the Profit Margin of HTGC has declined.
HTGC's Operating Margin of 64.99% is amongst the best of the industry. HTGC outperforms 98.32% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC's Gross Margin of 81.23% is amongst the best of the industry. HTGC outperforms 85.71% 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
The number of shares outstanding for HTGC has been increased compared to 1 year ago.
Compared to 5 years ago, HTGC has more shares outstanding
HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, 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 1.30, HTGC is in the better half of the industry, outperforming 61.34% 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 (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
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's Current ratio of 0.95 is in line compared to the rest of the industry. HTGC outperforms 40.34% of its industry peers.
A Quick Ratio of 0.95 indicates that HTGC may have some problems paying its short term obligations.
The Quick ratio of HTGC (0.95) 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
HTGC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.21%.
The Earnings Per Share has been growing slightly by 7.35% on average over the past years.
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
HTGC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.19% yearly.
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 2Y1.25%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue Next Year5.37%
Revenue Next 2Y7.45%
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
With a Price/Earnings ratio of 9.68, the valuation of HTGC can be described as very reasonable.
73.95% of the companies in the same industry are more expensive than HTGC, based on the Price/Earnings ratio.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.07, the valuation of HTGC can be described as very reasonable.
HTGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 79.41% of the companies in the same industry.
HTGC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than 78.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.3 |
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 2Y1.25%
EPS Next 3Y1.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.63%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.43, 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
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.
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 2Y1.25%
EPS Next 3Y1.19%
18.69
+0.2 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change-37.35%
Ins Owners1.73%
Ins Owner Change-1.27%
Market Cap3.40B
Revenue(TTM)516.85M
Net Income(TTM)307.37M
Analysts84.29
Price TargetN/A
Short Float %3.04%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.63% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP104.41%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.18%
Min EPS beat(2)0.34%
Max EPS beat(2)4.02%
EPS beat(4)2
Avg EPS beat(4)-1.44%
Min EPS beat(4)-5.11%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)-0.29%
EPS beat(12)7
Avg EPS beat(12)1.81%
EPS beat(16)9
Avg EPS beat(16)1.52%
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)0.25%
Max Revenue beat(2)3.19%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)5.13%
Revenue beat(12)8
Avg Revenue beat(12)4.68%
Revenue beat(16)9
Avg Revenue beat(16)3.06%
PT rev (1m)-0.74%
PT rev (3m)-1.33%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.07 | ||
| P/S | 6.57 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.55 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 16.3 |
EPS(TTM)1.93
EY10.33%
EPS(NY)2.06
Fwd EY11.02%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)-2.2
OCFYN/A
SpS2.84
BVpS12.05
TBVpS12.05
PEG (NY)N/A
PEG (5Y)1.32
Graham Number22.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROCE | 7.74% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 6.16% | ||
| OM | 64.99% | ||
| PM (TTM) | 59.47% | ||
| GM | 81.23% | ||
| 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%
ROICexgc growth 3Y12.85%
ROICexgc 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-Score1
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 17.58% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.3 |
F-Score1
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)-7.21%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-3.92%
EPS Next Y-2.12%
EPS Next 2Y1.25%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.09%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%10.26%
Revenue Next Year5.37%
Revenue Next 2Y7.45%
Revenue Next 3Y8.69%
Revenue Next 5YN/A
EBIT growth 1Y-18.05%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-212.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-213.28%
OCF growth 3YN/A
OCF growth 5YN/A
HERCULES CAPITAL INC / HTGC FAQ
What is the fundamental rating for HTGC stock?
ChartMill assigns a fundamental rating of 4 / 10 to HTGC.
Can you provide the valuation status for HERCULES CAPITAL INC?
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 7 / 10.
Can you provide the financial health for HTGC stock?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 1 / 10.
What is the earnings growth outlook for HERCULES CAPITAL INC?
The Earnings per Share (EPS) of HERCULES CAPITAL INC (HTGC) is expected to decline by -2.12% in the next year.