HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - New York Stock Exchange, Inc. - US4270965084 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HTGC. HTGC was compared to 233 industry peers in the Capital Markets industry. While HTGC has a great profitability rating, there are quite some concerns on its financial health. HTGC has a correct valuation and a medium 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.
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
Looking at the Return On Assets, with a value of 7.74%, HTGC belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
HTGC has a better Return On Equity (15.60%) than 80.26% of its industry peers.
HTGC's Return On Invested Capital of 8.01% is amongst the best of the industry. HTGC outperforms 82.40% 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 7.84%.
The last Return On Invested Capital (8.01%) for HTGC is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 15.6% | ||
| ROIC | 8.01% |
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 has a Profit Margin of 50.91%. This is amongst the best in the industry. HTGC outperforms 93.56% of its industry peers.
In the last couple of years the Profit Margin of HTGC has declined.
With an excellent Operating Margin value of 65.78%, HTGC belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
HTGC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.38%, HTGC belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
HTGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.78% | ||
| PM (TTM) | 50.91% | ||
| GM | 82.38% |
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.
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 1.48, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HTGC (1.48) is better than 62.66% of its industry peers.
HTGC has a Debt/Equity ratio of 0.99. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
The Debt to Equity ratio of HTGC (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.56. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.56, HTGC is doing good in the industry, outperforming 62.66% of the companies in the same industry.
HTGC has a Quick Ratio of 1.56. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
HTGC's Quick ratio of 1.56 is fine compared to the rest of the industry. HTGC outperforms 62.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HTGC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.11%.
HTGC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
HTGC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.52%.
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 13.00% on average per year.
EPS 1Y (TTM)-7.11%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-10%
Revenue 1Y (TTM)28.52%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-1.68%
3.2 Future
The Earnings Per Share is expected to decrease by -0.43% on average over the next years.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y-3.13%
EPS Next 2Y0.84%
EPS Next 3Y-0.43%
EPS Next 5YN/A
Revenue Next Year1.98%
Revenue Next 2Y5.84%
Revenue Next 3Y7.45%
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
Based on the Price/Earnings ratio of 9.66, the valuation of HTGC can be described as reasonable.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HTGC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of HTGC.
81.55% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
HTGC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
84.55% of the companies in the same industry are more expensive than HTGC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.91 |
4.3 Compensation for Growth
The excellent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y0.84%
EPS Next 3Y-0.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.60%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is a higher than the industry average which is at 8.10.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 7.41%!
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
98.70% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
HTGC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP98.7%
EPS Next 2Y0.84%
EPS Next 3Y-0.43%
18.94
+0.2 (+1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.89%
Inst Owner Change0%
Ins Owners1.83%
Ins Owner Change4.85%
Market Cap3.32B
Analysts81.43
Price Target21.04 (11.09%)
Short Float %3.4%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP98.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.06%
Min EPS beat(2)-5.11%
Max EPS beat(2)-5.01%
EPS beat(4)0
Avg EPS beat(4)-3.67%
Min EPS beat(4)-5.11%
Max EPS beat(4)-2.17%
EPS beat(8)3
Avg EPS beat(8)0.59%
EPS beat(12)6
Avg EPS beat(12)1.69%
EPS beat(16)7
Avg EPS beat(16)0.51%
Revenue beat(2)0
Avg Revenue beat(2)-5.08%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-4.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.77%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)-1.01%
Revenue beat(8)4
Avg Revenue beat(8)5.52%
Revenue beat(12)7
Avg Revenue beat(12)4.42%
Revenue beat(16)7
Avg Revenue beat(16)2.54%
PT rev (1m)2.84%
PT rev (3m)-5.98%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-2.95%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-2.88%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.27 | ||
| P/S | 5.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.66 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 12.91 |
EPS(TTM)1.96
EY10.35%
EPS(NY)2.04
Fwd EY10.79%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)-0.57
OCFYN/A
SpS3.49
BVpS11.4
TBVpS11.4
PEG (NY)N/A
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 15.6% | ||
| ROCE | 10.14% | ||
| ROIC | 8.01% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 8.12% | ||
| OM | 65.78% | ||
| PM (TTM) | 50.91% | ||
| GM | 82.38% | ||
| 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%
ROICexcg growth 3Y12.85%
ROICexcg 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-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.9 | ||
| Cap/Depr | 114.09% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.48 |
F-Score3
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)-7.11%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-10%
EPS Next Y-3.13%
EPS Next 2Y0.84%
EPS Next 3Y-0.43%
EPS Next 5YN/A
Revenue 1Y (TTM)28.52%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-1.68%
Revenue Next Year1.98%
Revenue Next 2Y5.84%
Revenue Next 3Y7.45%
Revenue Next 5YN/A
EBIT growth 1Y26.94%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y68.66%
OCF growth 3YN/A
OCF growth 5YN/A