HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HTGC • US4270965084
18.53 USD
-0.15 (-0.8%)
At close: Jan 30, 2026
18.5244 USD
-0.01 (-0.03%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 4 out of 10 to HTGC. HTGC was compared to 237 industry peers in the Capital Markets industry. There are concerns on the financial health of HTGC while its profitability can be described as average. HTGC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- HTGC had positive earnings in the past year.
- In the past year HTGC has reported a negative cash flow from operations.
- In the past 5 years HTGC has always been profitable.
- 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 better Return On Assets (6.97%) than 78.90% of its industry peers.
- With a decent Return On Equity value of 14.04%, HTGC is doing good in the industry, outperforming 74.26% of the companies in the same industry.
- HTGC has a Return On Invested Capital of 6.11%. This is in the better half of the industry: HTGC outperforms 74.26% of its industry peers.
- HTGC had an Average Return On Invested Capital over the past 3 years of 6.33%. This is in line with the industry average of 7.27%.
| 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
- HTGC's Profit Margin of 59.47% is amongst the best of the industry. HTGC outperforms 92.83% 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 has a better Gross Margin (81.23%) than 85.65% 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
- The number of shares outstanding for HTGC has been increased compared to 5 years ago.
- The debt/assets ratio for HTGC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.31, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
- HTGC's Altman-Z score of 1.31 is fine compared to the rest of the industry. HTGC outperforms 62.03% 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.
- With a Debt to Equity ratio value of 0.98, HTGC perfoms like the industry average, outperforming 50.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
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's Current ratio of 0.95 is in line compared to the rest of the industry. HTGC outperforms 40.93% 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.
- 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
- The earnings per share for HTGC have decreased by -7.21% in the last year.
- Measured over the past 5 years, HTGC shows a small growth in Earnings Per Share. The EPS has been growing by 7.35% on average per year.
- 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 1.33% yearly.
- Based on estimates for the next years, HTGC will show a quite strong growth in Revenue. The Revenue will grow by 8.69% on average per year.
EPS Next Y-2.17%
EPS Next 2Y1.19%
EPS Next 3Y1.33%
EPS Next 5YN/A
Revenue Next Year6.74%
Revenue Next 2Y8.17%
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
- With a Price/Earnings ratio of 9.60, the valuation of HTGC can be described as very reasonable.
- Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than 71.73% of the companies in the same industry.
- HTGC is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.00, which indicates a very decent valuation of HTGC.
- Based on the Price/Forward Earnings ratio, HTGC is valued cheaply inside the industry as 80.17% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9 |
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 78.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.32 |
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)1.31
EPS Next 2Y1.19%
EPS Next 3Y1.33%
5. Dividend
5.1 Amount
- HTGC has a Yearly Dividend Yield of 8.57%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.98, HTGC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
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 2Y1.19%
EPS Next 3Y1.33%
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 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 6 / 10.
How financially healthy is HERCULES CAPITAL INC?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 1 / 10.
Can you provide the expected EPS growth for HTGC stock?
The Earnings per Share (EPS) of HERCULES CAPITAL INC (HTGC) is expected to decline by -2.17% in the next year.