HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
18.79 USD
+0.06 (+0.32%)
18.76 USD
-0.03 (-0.16%)
HTGC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 235 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.
Each year in the past 5 years HTGC has been profitable.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
HTGC has a better Return On Assets (6.97%) than 82.55% of its industry peers.
HTGC has a better Return On Equity (14.04%) than 74.89% of its industry peers.
HTGC has a Return On Invested Capital of 6.11%. This is in the better half of the industry: HTGC outperforms 74.89% 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 7.07%.
| 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
With an excellent Profit Margin value of 59.47%, HTGC belongs to the best of the industry, outperforming 93.19% of the companies in the same industry.
HTGC's Profit Margin has declined in the last couple of years.
HTGC has a Operating Margin of 64.99%. This is amongst the best in the industry. HTGC outperforms 98.30% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC has a better Gross Margin (81.23%) than 85.96% 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
HTGC has more shares outstanding than it did 1 year ago.
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 1.32, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC has a better Altman-Z score (1.32) than 62.13% of its industry peers.
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 | 1.32 |
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.
Looking at the Current ratio, with a value of 0.95, HTGC is doing worse than 60.00% of the companies in the same industry.
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.
The Quick ratio of HTGC (0.95) is comparable to the rest of the 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
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
The Earnings Per Share is expected to grow by 1.19% on average over the next years.
HTGC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.69% yearly.
EPS Next Y-2.12%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue Next Year5.59%
Revenue Next 2Y7.59%
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
The Price/Earnings ratio is 9.74, which indicates a very decent valuation of HTGC.
Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 73.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, HTGC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.14, the valuation of HTGC can be described as reasonable.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than the industry average as 77.45% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (23.35), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 9.14 |
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 77.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.47 |
4.3 Compensation for Growth
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y1.13%
EPS Next 3Y1.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.65%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is a higher than the industry average which is at 6.65.
Compared to an average S&P500 Dividend Yield of 2.00, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
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.
The dividend of HTGC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.41%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
18.79
+0.06 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change-37.35%
Ins Owners1.73%
Ins Owner Change-1.27%
Market Cap3.41B
Revenue(TTM)516.85M
Net Income(TTM)307.37M
Analysts84.29
Price Target21.22 (12.93%)
Short Float %2.8%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
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)-0.63%
PT rev (3m)-1.95%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.49%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 9.14 | ||
| P/S | 6.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)1.93
EY10.27%
EPS(NY)2.06
Fwd EY10.94%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)-2.2
OCFYN/A
SpS2.84
BVpS12.05
TBVpS12.05
PEG (NY)N/A
PEG (5Y)1.32
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 | 1.32 |
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-2.12%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.09%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%10.26%
Revenue Next Year5.59%
Revenue Next 2Y7.59%
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 -2.12% in the next year.