HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
17.88 USD
+0.2 (+1.13%)
17.88 USD
0 (0%)
Overall HTGC gets a fundamental rating of 4 out of 10. We evaluated HTGC against 237 industry peers in the Capital Markets industry. HTGC has an excellent profitability rating, but there are concerns on its financial health. HTGC has a correct valuation and a medium growth rate.
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
With an excellent Return On Assets value of 6.97%, HTGC belongs to the best of the industry, outperforming 82.28% of the companies in the same industry.
With a decent Return On Equity value of 14.04%, HTGC is doing good in the industry, outperforming 73.84% 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 73.84% 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 6.96%.
| 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.
The Operating Margin of HTGC (64.99%) is better than 98.31% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC has a Gross Margin of 81.23%. This is amongst the best in the industry. HTGC outperforms 86.08% 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 | 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
Compared to 5 years ago, HTGC has more shares outstanding
Compared to 1 year ago, HTGC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HTGC (1.27) is better than 62.03% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that HTGC is somewhat dependend on debt financing.
HTGC has a Debt to Equity ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
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 worse Current ratio (0.95) than 60.76% of its industry peers.
A Quick Ratio of 0.95 indicates that HTGC may have some problems paying its short term obligations.
HTGC has a Quick ratio of 0.95. This is in the lower half of the industry: HTGC underperforms 60.34% of its industry peers.
| 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%.
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 0.26% 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-2.35%
EPS Next 2Y1%
EPS Next 3Y0.26%
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.
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 9.26, the valuation of HTGC can be described as reasonable.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than 75.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. HTGC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.72, the valuation of HTGC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than 79.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (36.12), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.72 |
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 77.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.97 |
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)1.26
EPS Next 2Y1%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.25%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.60, HTGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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%
EPS Next 3Y0.26%
17.88
+0.2 (+1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners27.52%
Inst Owner Change-37.38%
Ins Owners1.75%
Ins Owner Change-1.37%
Market Cap3.25B
Revenue(TTM)516.85M
Net Income(TTM)307.37M
Analysts81.43
Price Target21.36 (19.46%)
Short Float %2.46%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.25% |
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)-1.33%
PT rev (3m)-1.33%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)1.1%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.72 | ||
| P/S | 6.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 15.97 |
EPS(TTM)1.93
EY10.79%
EPS(NY)2.05
Fwd EY11.47%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)-2.2
OCFYN/A
SpS2.84
BVpS12.05
TBVpS12.05
PEG (NY)N/A
PEG (5Y)1.26
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 | 1.27 |
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-2.35%
EPS Next 2Y1%
EPS Next 3Y0.26%
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 -2.35% in the next year.