HERCULES CAPITAL INC (HTGC)
US4270965084 - Common Stock
We assign a fundamental rating of 5 out of 10 to HTGC. HTGC was compared to 220 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 has a correct valuation and a medium growth rate. Finally HTGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HTGC had positive earnings in the past year.
In the past year HTGC had a positive cash flow from operations.
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 11.22% is amongst the best of the industry. HTGC outperforms 88.02% of its industry peers.
HTGC's Return On Equity of 22.15% is amongst the best of the industry. HTGC outperforms 91.24% of its industry peers.
The Return On Invested Capital of HTGC (9.02%) is better than 81.11% 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 6.99%.
The 3 year average ROIC (5.60%) for HTGC is below the current ROIC(9.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 22.15% | ||
| ROIC | 9.02% |
ROA(3y)6.57%
ROA(5y)7.07%
ROE(3y)12.95%
ROE(5y)14.32%
ROIC(3y)5.6%
ROIC(5y)5.26%
1.3 Margins
Looking at the Profit Margin, with a value of 66.58%, HTGC belongs to the top of the industry, outperforming 94.47% of the companies in the same industry.
In the last couple of years the Profit Margin of HTGC has grown nicely.
With an excellent Operating Margin value of 66.54%, HTGC belongs to the best of the industry, outperforming 97.70% of the companies in the same industry.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC has a better Gross Margin (83.14%) than 84.33% of its industry peers.
HTGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.54% | ||
| PM (TTM) | 66.58% | ||
| GM | 83.14% |
OM growth 3Y6.47%
OM growth 5Y4.76%
PM growth 3Y-2.62%
PM growth 5Y14.71%
GM growth 3Y2.74%
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
The debt/assets ratio for HTGC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HTGC (1.67) is better than 66.82% of its industry peers.
The Debt to FCF ratio of HTGC is 42.58, which is on the high side as it means it would take HTGC, 42.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 42.58, HTGC is doing worse than 60.83% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that HTGC is somewhat dependend on debt financing.
HTGC has a Debt to Equity ratio (0.94) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 42.58 | ||
| Altman-Z | 1.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.08. 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 Current ratio of 1.08. This is comparable to the rest of the industry: HTGC outperforms 48.39% of its industry peers.
A Quick Ratio of 1.08 indicates that HTGC should not have too much problems paying its short term obligations.
The Quick ratio of HTGC (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
HTGC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.00%.
The Earnings Per Share has been growing by 11.74% on average over the past years. This is quite good.
Looking at the last year, HTGC shows a very strong growth in Revenue. The Revenue has grown by 40.57%.
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 17.26% on average per year.
EPS 1Y (TTM)4%
EPS 3Y14.29%
EPS 5Y11.74%
EPS Q2Q%-1.92%
Revenue 1Y (TTM)40.57%
Revenue growth 3Y17.04%
Revenue growth 5Y17.26%
Sales Q2Q%7.28%
3.2 Future
The Earnings Per Share is expected to decrease by -1.91% on average over the next years.
HTGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y-0.82%
EPS Next 2Y-1.15%
EPS Next 3Y-1.91%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y7.15%
Revenue Next 3Y5.67%
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 9.55, the valuation of HTGC can be described as reasonable.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of HTGC to the average of the S&P500 Index (27.55), we can say HTGC is valued rather cheaply.
HTGC is valuated reasonably with a Price/Forward Earnings ratio of 9.72.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 9.72 |
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 82.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HTGC is valued a bit more expensive than the industry average as 62.21% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.48 | ||
| EV/EBITDA | 12.15 |
4.3 Compensation for Growth
HTGC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-1.15%
EPS Next 3Y-1.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.41%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.57, HTGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.41% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 8.65%!
HTGC has paid a dividend for at least 10 years, which is a reliable track record.
HTGC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.65%
Div Incr Years5
Div Non Decr Years13
5.3 Sustainability
72.53% of the earnings are spent on dividend by HTGC. 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.
DP72.53%
EPS Next 2Y-1.15%
EPS Next 3Y-1.91%
HERCULES CAPITAL INC
NYSE:HTGC (12/26/2024, 8:20:31 PM)
After market: 19.8 -0.06 (-0.3%)19.86
+0.27 (+1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners26.66%
Inst Owner Change1.57%
Ins Owners1.83%
Ins Owner Change-2.93%
Market Cap3.33B
Analysts78.67
Price Target21.05 (5.99%)
Short Float %3.11%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.41% |
Dividend Growth(5Y)8.65%
DP72.53%
Div Incr Years5
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.28%
Min EPS beat(2)-2.39%
Max EPS beat(2)-2.17%
EPS beat(4)1
Avg EPS beat(4)0.86%
Min EPS beat(4)-2.39%
Max EPS beat(4)9.08%
EPS beat(8)5
Avg EPS beat(8)3.44%
EPS beat(12)7
Avg EPS beat(12)2.5%
EPS beat(16)8
Avg EPS beat(16)1.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-3.9%
Max Revenue beat(2)-1.01%
Revenue beat(4)2
Avg Revenue beat(4)11.93%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)52.57%
Revenue beat(8)6
Avg Revenue beat(8)7.87%
Revenue beat(12)7
Avg Revenue beat(12)4.63%
Revenue beat(16)8
Avg Revenue beat(16)3.18%
PT rev (1m)0.27%
PT rev (3m)0.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 9.72 | ||
| P/S | 5.4 | ||
| P/FCF | 81.48 | ||
| P/OCF | 79.18 | ||
| P/B | 1.8 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 12.15 |
EPS(TTM)2.08
EY10.47%
EPS(NY)2.04
Fwd EY10.28%
FCF(TTM)0.24
FCFY1.23%
OCF(TTM)0.25
OCFY1.26%
SpS3.68
BVpS11.05
TBVpS11.05
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 22.15% | ||
| ROCE | 11.41% | ||
| ROIC | 9.02% | ||
| ROICexc | 9.12% | ||
| ROICexgc | 9.12% | ||
| OM | 66.54% | ||
| PM (TTM) | 66.58% | ||
| GM | 83.14% | ||
| FCFM | 6.63% |
ROA(3y)6.57%
ROA(5y)7.07%
ROE(3y)12.95%
ROE(5y)14.32%
ROIC(3y)5.6%
ROIC(5y)5.26%
ROICexc(3y)5.77%
ROICexc(5y)5.46%
ROICexgc(3y)5.78%
ROICexgc(5y)5.48%
ROCE(3y)7.09%
ROCE(5y)6.66%
ROICexcg growth 3Y12.34%
ROICexcg growth 5Y10.18%
ROICexc growth 3Y12.23%
ROICexc growth 5Y10.1%
OM growth 3Y6.47%
OM growth 5Y4.76%
PM growth 3Y-2.62%
PM growth 5Y14.71%
GM growth 3Y2.74%
GM growth 5Y1.42%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 42.58 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 327% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 5.54 | ||
| Cash Conversion | 10.25% | ||
| Profit Quality | 9.96% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.67 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)183.39%
Cap/Depr(5y)155.04%
Cap/Sales(3y)0.09%
Cap/Sales(5y)0.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4%
EPS 3Y14.29%
EPS 5Y11.74%
EPS Q2Q%-1.92%
EPS Next Y-0.82%
EPS Next 2Y-1.15%
EPS Next 3Y-1.91%
EPS Next 5YN/A
Revenue 1Y (TTM)40.57%
Revenue growth 3Y17.04%
Revenue growth 5Y17.26%
Sales Q2Q%7.28%
Revenue Next Year9.59%
Revenue Next 2Y7.15%
Revenue Next 3Y5.67%
Revenue Next 5YN/A
EBIT growth 1Y46.34%
EBIT growth 3Y24.62%
EBIT growth 5Y22.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y115.7%
FCF growth 3Y-31.28%
FCF growth 5YN/A
OCF growth 1Y116.17%
OCF growth 3Y-31%
OCF growth 5YN/A