HERCULES CAPITAL INC (HTGC) Fundamental Analysis & Valuation
NYSE:HTGC • US4270965084
14.04 USD
-0.32 (-2.23%)
At close: Mar 12, 2026
14.2196 USD
+0.18 (+1.28%)
After Hours: 3/12/2026, 8:04:00 PM
This HTGC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, HTGC scores 4 out of 10 in our fundamental rating. HTGC was compared to 242 industry peers in the Capital Markets industry. While HTGC is still in line with the averages on profitability rating, there are concerns on its financial health. HTGC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. HTGC Profitability Analysis
1.1 Basic Checks
- HTGC had positive earnings in the past year.
- HTGC had a negative operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 7.35%, HTGC is doing good in the industry, outperforming 77.69% of the companies in the same industry.
- HTGC's Return On Equity of 15.20% is fine compared to the rest of the industry. HTGC outperforms 76.03% of its industry peers.
- With a decent Return On Invested Capital value of 6.00%, HTGC is doing good in the industry, outperforming 75.62% of the companies in the same industry.
- HTGC had an Average Return On Invested Capital over the past 3 years of 6.67%. This is in line with the industry average of 7.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 15.2% | ||
| ROIC | 6% |
ROA(3y)7.97%
ROA(5y)6.77%
ROE(3y)15.61%
ROE(5y)13.42%
ROIC(3y)6.67%
ROIC(5y)5.93%
1.3 Margins
- The Profit Margin of HTGC (63.24%) is better than 93.80% of its industry peers.
- HTGC's Profit Margin has declined in the last couple of years.
- HTGC has a better Operating Margin (64.17%) than 96.69% of its industry peers.
- HTGC's Operating Margin has improved in the last couple of years.
- HTGC has a better Gross Margin (80.62%) than 85.95% of its industry peers.
- HTGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.17% | ||
| PM (TTM) | 63.24% | ||
| GM | 80.62% |
OM growth 3Y3.15%
OM growth 5Y3.25%
PM growth 3Y26.79%
PM growth 5Y-4.23%
GM growth 3Y0.01%
GM growth 5Y1%
2. HTGC Health Analysis
2.1 Basic Checks
- Compared to 1 year ago, HTGC has more shares outstanding
- The number of shares outstanding for HTGC has been increased compared to 5 years ago.
- Compared to 1 year ago, HTGC has a worse debt to assets ratio.
2.2 Solvency
- HTGC has an Altman-Z score of 1.06. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
- HTGC's Altman-Z score of 1.06 is in line compared to the rest of the industry. HTGC outperforms 58.68% of its industry peers.
- HTGC has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
- HTGC has a Debt to Equity ratio of 1.03. This is comparable to the rest of the industry: HTGC outperforms 49.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.16 indicates that HTGC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.16, HTGC is in line with its industry, outperforming 50.00% of the companies in the same industry.
- HTGC has a Quick Ratio of 1.16. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.16, HTGC is in line with its industry, outperforming 53.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. HTGC Growth Analysis
3.1 Past
- The earnings per share for HTGC have decreased by -4.48% in the last year.
- HTGC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.52% yearly.
- Looking at the last year, HTGC shows a very negative growth in Revenue. The Revenue has decreased by -13.44% in the last year.
- The Revenue has been growing by 13.13% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.48%
EPS 3Y9.06%
EPS 5Y6.52%
EPS Q2Q%-2.04%
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y18.29%
Revenue growth 5Y13.13%
Sales Q2Q%12.85%
3.2 Future
- Based on estimates for the next years, HTGC will show a decrease in Earnings Per Share. The EPS will decrease by -0.22% on average per year.
- HTGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.72% yearly.
EPS Next Y5.31%
EPS Next 2Y3.42%
EPS Next 3Y-0.22%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y6.54%
Revenue Next 3Y6.72%
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. HTGC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.31, the valuation of HTGC can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 76.03% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HTGC to the average of the S&P500 Index (25.71), we can say HTGC is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.94, which indicates a rather cheap valuation of HTGC.
- Based on the Price/Forward Earnings ratio, HTGC is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 23.82. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than 76.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)1.12
EPS Next 2Y3.42%
EPS Next 3Y-0.22%
5. HTGC Dividend Analysis
5.1 Amount
- HTGC has a Yearly Dividend Yield of 10.59%, which is a nice return.
- The stock price of HTGC dropped by -25.44% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 6.63, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.59% |
5.2 History
- On average, the dividend of HTGC grows each year by 6.10%, which is quite nice.
- HTGC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.1%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- HTGC pays out 96.80% of its income as dividend. 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.
DP96.8%
EPS Next 2Y3.42%
EPS Next 3Y-0.22%
HTGC Fundamentals: All Metrics, Ratios and Statistics
14.04
-0.32 (-2.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-29 2026-04-29
Inst Owners29.27%
Inst Owner Change7.38%
Ins Owners1.94%
Ins Owner Change7.27%
Market Cap2.58B
Revenue(TTM)532.49M
Net Income(TTM)336.77M
Analysts82.67
Price Target20.71 (47.51%)
Short Float %4.56%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.59% |
Yearly Dividend1.85
Dividend Growth(5Y)6.1%
DP96.8%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-25 2026-02-25 (0.07)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.03%
Min EPS beat(2)-4.39%
Max EPS beat(2)0.34%
EPS beat(4)2
Avg EPS beat(4)-1.26%
Min EPS beat(4)-5.01%
Max EPS beat(4)4.02%
EPS beat(8)2
Avg EPS beat(8)-1.97%
EPS beat(12)6
Avg EPS beat(12)0.56%
EPS beat(16)8
Avg EPS beat(16)0.88%
Revenue beat(2)1
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-2.99%
Max Revenue beat(2)0.25%
Revenue beat(4)2
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)3.19%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)7
Avg Revenue beat(12)3.76%
Revenue beat(16)9
Avg Revenue beat(16)2.91%
PT rev (1m)-2.92%
PT rev (3m)-3.02%
EPS NQ rev (1m)-2.89%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)-1.76%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 6.94 | ||
| P/S | 4.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)1.92
EY13.68%
EPS(NY)2.02
Fwd EY14.4%
FCF(TTM)-2.32
FCFYN/A
OCF(TTM)-2.32
OCFYN/A
SpS2.9
BVpS12.06
TBVpS12.06
PEG (NY)1.38
PEG (5Y)1.12
Graham Number22.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 15.2% | ||
| ROCE | 7.59% | ||
| ROIC | 6% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 6.08% | ||
| OM | 64.17% | ||
| PM (TTM) | 63.24% | ||
| GM | 80.62% | ||
| FCFM | N/A |
ROA(3y)7.97%
ROA(5y)6.77%
ROE(3y)15.61%
ROE(5y)13.42%
ROIC(3y)6.67%
ROIC(5y)5.93%
ROICexc(3y)6.83%
ROICexc(5y)6.09%
ROICexgc(3y)6.85%
ROICexgc(5y)6.1%
ROCE(3y)8.44%
ROCE(5y)7.51%
ROICexgc growth 3Y6.57%
ROICexgc growth 5Y3.09%
ROICexc growth 3Y6.55%
ROICexc growth 5Y3.09%
OM growth 3Y3.15%
OM growth 5Y3.25%
PM growth 3Y26.79%
PM growth 5Y-4.23%
GM growth 3Y0.01%
GM growth 5Y1%
F-Score1
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.68 | ||
| Cap/Depr | 26.41% | ||
| Cap/Sales | 0.02% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.06 |
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)214.85%
Cap/Depr(5y)145.57%
Cap/Sales(3y)0.12%
Cap/Sales(5y)0.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.48%
EPS 3Y9.06%
EPS 5Y6.52%
EPS Q2Q%-2.04%
EPS Next Y5.31%
EPS Next 2Y3.42%
EPS Next 3Y-0.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y18.29%
Revenue growth 5Y13.13%
Sales Q2Q%12.85%
Revenue Next Year8.54%
Revenue Next 2Y6.54%
Revenue Next 3Y6.72%
Revenue Next 5YN/A
EBIT growth 1Y-15.62%
EBIT growth 3Y22.02%
EBIT growth 5Y16.82%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-258.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-260.58%
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.
What is the valuation status of HERCULES CAPITAL INC (HTGC) stock?
ChartMill assigns a valuation rating of 6 / 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 6 / 10.
How financially healthy is HERCULES CAPITAL INC?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 2 / 10.
Can you provide the expected EPS growth for HTGC stock?
The Earnings per Share (EPS) of HERCULES CAPITAL INC (HTGC) is expected to grow by 5.31% in the next year.