HERCULES CAPITAL INC (HTGC)
US4270965084 - Common Stock
Taking everything into account, HTGC scores 5 out of 10 in our fundamental rating. HTGC was compared to 218 industry peers in the Capital Markets industry. HTGC scores excellent on profitability, but there are concerns on its financial health. HTGC has a correct valuation and a medium growth rate.
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 has a Return On Assets of 11.22%. This is amongst the best in the industry. HTGC outperforms 89.30% of its industry peers.
The Return On Equity of HTGC (22.15%) is better than 91.63% of its industry peers.
With an excellent Return On Invested Capital value of 9.02%, HTGC belongs to the best of the industry, outperforming 81.86% of the companies in the same industry.
HTGC had an Average Return On Invested Capital over the past 3 years of 5.60%. This is in line with the industry average of 6.96%.
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
HTGC has a better Profit Margin (66.58%) than 94.42% of its industry peers.
In the last couple of years the Profit Margin of HTGC has grown nicely.
HTGC has a better Operating Margin (66.54%) than 97.67% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC's Gross Margin of 83.14% is amongst the best of the industry. HTGC outperforms 84.65% 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 | 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
HTGC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HTGC has been increased compared to 5 years ago.
HTGC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, 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 1.58, HTGC is in the better half of the industry, outperforming 64.65% of the companies in the same industry.
HTGC has a debt to FCF ratio of 42.58. This is a negative value and a sign of low solvency as HTGC would need 42.58 years to pay back of all of its debts.
HTGC has a Debt to FCF ratio of 42.58. This is in the lower half of the industry: HTGC underperforms 61.86% of its industry peers.
HTGC has a Debt/Equity ratio of 0.94. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, HTGC is in line with its industry, outperforming 53.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 42.58 | ||
| Altman-Z | 1.58 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.08 indicates that HTGC should not have too much problems paying its short term obligations.
HTGC has a Current ratio of 1.08. This is comparable to the rest of the industry: HTGC outperforms 47.91% of its industry peers.
HTGC has a Quick 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 Quick ratio of 1.08. This is comparable to the rest of the industry: HTGC outperforms 48.37% of its industry peers.
| 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.
The Revenue has grown by 40.57% in the past year. This is a very strong growth!
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 -2.06% on average over the next years.
Based on estimates for the next years, HTGC will show a small growth in Revenue. The Revenue will grow by 6.23% on average per year.
EPS Next Y-0.56%
EPS Next 2Y-1.11%
EPS Next 3Y-2.06%
EPS Next 5YN/A
Revenue Next Year10.11%
Revenue Next 2Y7.88%
Revenue Next 3Y6.23%
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
HTGC is valuated reasonably with a Price/Earnings ratio of 9.02.
74.88% of the companies in the same industry are more expensive than HTGC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. HTGC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.18 indicates a reasonable valuation of HTGC.
75.35% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.18 |
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 83.72% of the companies listed in the same industry.
62.79% of the companies in the same industry are cheaper than HTGC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.61 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
HTGC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HTGC's earnings are expected to decrease with -2.06% in the coming years.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-1.11%
EPS Next 3Y-2.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.40%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is a higher than the industry average which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
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.
Dividend Growth(5Y)8.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
72.53% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
The Dividend Rate of HTGC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP72.53%
EPS Next 2Y-1.11%
EPS Next 3Y-2.06%
HERCULES CAPITAL INC
NYSE:HTGC (11/22/2024, 6:40:00 PM)
After market: 18.78 +0.02 (+0.11%)18.76
+0.23 (+1.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 22.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 66.54% | ||
| PM (TTM) | 66.58% | ||
| GM | 83.14% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4%
EPS 3Y14.29%
EPS 5Y
EPS Q2Q%
EPS Next Y-0.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)40.57%
Revenue growth 3Y17.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y