HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - NYSE:HTGC - US4270965084 - Common Stock
17.13 USD
-0.44 (-2.5%)
17.155 USD
+0.03 (+0.15%)
Taking everything into account, HTGC scores 4 out of 10 in our fundamental rating. HTGC was compared to 237 industry peers in the Capital Markets industry. HTGC has an excellent profitability rating, but 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.
HTGC had positive earnings in each of the past 5 years.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.97%, HTGC belongs to the top of the industry, outperforming 81.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.04%, HTGC is in the better half of the industry, outperforming 75.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.11%, HTGC is in the better half of the industry, outperforming 73.42% 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 7.11%.
| 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
The Profit Margin of HTGC (59.47%) is better than 93.25% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 64.99%, HTGC belongs to the top of the industry, outperforming 98.31% of the companies in the same industry.
HTGC's Operating Margin has improved in the last couple of years.
HTGC's Gross Margin of 81.23% is amongst the best of the industry. HTGC outperforms 86.50% 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
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
HTGC has an Altman-Z score of 1.26. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, HTGC is in the better half of the industry, outperforming 60.76% 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.
The Debt to Equity ratio of HTGC (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.95 indicates that HTGC may have some problems paying its short term obligations.
HTGC has a worse Current ratio (0.95) than 61.18% of its industry peers.
HTGC has a Quick 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.
Looking at the Quick ratio, with a value of 0.95, HTGC is doing worse than 60.76% of the companies in the same 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 0.26% yearly.
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
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.
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
Based on the Price/Earnings ratio of 8.88, 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 75.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. HTGC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.36, the valuation of HTGC can be described as reasonable.
HTGC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HTGC is cheaper than 80.59% 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 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
HTGC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 78.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.8 |
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)1.21
EPS Next 2Y1%
EPS Next 3Y0.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.06%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is a higher than the industry average which is at 8.48.
Compared to an average S&P500 Dividend Yield of 2.44, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
5.2 History
On average, the dividend of HTGC grows each year by 7.41%, which is quite nice.
HTGC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
104.41% of the earnings are spent on dividend by HTGC. 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%
17.13
-0.44 (-2.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners27.52%
Inst Owner Change-37.43%
Ins Owners1.75%
Ins Owner Change-2.32%
Market Cap3.11B
Revenue(TTM)516.85M
Net Income(TTM)307.37M
Analysts81.43
Price Target21.52 (25.63%)
Short Float %2.47%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
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)-0.59%
PT rev (3m)-0.59%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 8.36 | ||
| P/S | 6.02 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 15.8 |
EPS(TTM)1.93
EY11.27%
EPS(NY)2.05
Fwd EY11.97%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)-2.2
OCFYN/A
SpS2.84
BVpS12.05
TBVpS12.05
PEG (NY)N/A
PEG (5Y)1.21
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 | 1.26 |
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.