HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - New York Stock Exchange, Inc. - US4270965084 - Common Stock - Currency: USD
Overall HTGC gets a fundamental rating of 5 out of 10. We evaluated HTGC against 223 industry peers in the Capital Markets industry. While HTGC belongs to the best of the industry regarding profitability, there are concerns on its financial health. HTGC has a decent growth rate and is not valued too expensively. HTGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HTGC had positive earnings in the past year.
In the past year HTGC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 11.22%, HTGC belongs to the top of the industry, outperforming 88.99% of the companies in the same industry.
The Return On Equity of HTGC (22.15%) is better than 91.74% of its industry peers.
HTGC has a better Return On Invested Capital (9.02%) than 81.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HTGC is in line with the industry average of 6.74%.
The 3 year average ROIC (5.60%) for HTGC is below the current ROIC(9.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 22.15% | ||
| ROIC | 9.02% |
ROA(3y)6.57%
ROA(5y)7.07%
ROE(3y)12.95%
ROE(5y)14.32%
ROIC(3y)5.6%
ROIC(5y)5.26%
1.3 Margins
Looking at the Profit Margin, with a value of 66.58%, HTGC belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.
In the last couple of years the Profit Margin of HTGC has grown nicely.
HTGC has a better Operating Margin (66.54%) than 97.71% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC has a Gross Margin of 83.14%. This is amongst the best in the industry. HTGC outperforms 85.32% of its industry peers.
HTGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.54% | ||
| PM (TTM) | 66.58% | ||
| GM | 83.14% |
OM growth 3Y6.47%
OM growth 5Y4.76%
PM growth 3Y-2.62%
PM growth 5Y14.71%
GM growth 3Y2.74%
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.
Compared to 1 year ago, HTGC has an improved debt to assets ratio.
2.2 Solvency
HTGC has an Altman-Z score of 1.75. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HTGC (1.75) is better than 67.89% of its industry peers.
HTGC has a debt to FCF ratio of 42.58. This is a negative value and a sign of low solvency as HTGC would need 42.58 years to pay back of all of its debts.
HTGC's Debt to FCF ratio of 42.58 is on the low side compared to the rest of the industry. HTGC is outperformed by 61.01% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that HTGC is somewhat dependend on debt financing.
HTGC has a Debt to Equity ratio (0.94) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 42.58 | ||
| Altman-Z | 1.75 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.08 indicates that HTGC should not have too much problems paying its short term obligations.
The Current ratio of HTGC (1.08) is comparable to the rest of the industry.
A Quick Ratio of 1.08 indicates that HTGC should not have too much problems paying its short term obligations.
HTGC has a Quick ratio of 1.08. This is comparable to the rest of the industry: HTGC outperforms 48.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.00% over the past year.
HTGC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.74% yearly.
Looking at the last year, HTGC shows a very strong growth in Revenue. The Revenue has grown by 40.57%.
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 17.26% on average per year.
EPS 1Y (TTM)4%
EPS 3Y14.29%
EPS 5Y11.74%
EPS Q2Q%-1.92%
Revenue 1Y (TTM)40.57%
Revenue growth 3Y17.04%
Revenue growth 5Y17.26%
Sales Q2Q%7.28%
3.2 Future
Based on estimates for the next years, HTGC will show a decrease in Earnings Per Share. The EPS will decrease by -1.74% on average per year.
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y-0.82%
EPS Next 2Y-1.26%
EPS Next 3Y-1.74%
EPS Next 5YN/A
Revenue Next Year9.61%
Revenue Next 2Y7.31%
Revenue Next 3Y5.67%
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
HTGC is valuated reasonably with a Price/Earnings ratio of 10.08.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than the industry average as 71.56% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.47. HTGC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.29, the valuation of HTGC can be described as reasonable.
HTGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 67.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (92.74), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HTGC indicates a rather cheap valuation: HTGC is cheaper than 83.03% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HTGC is valued a bit more expensive than the industry average as 62.39% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.03 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The excellent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-1.26%
EPS Next 3Y-1.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.60%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.39, HTGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 8.65%!
HTGC has been paying a dividend for at least 10 years, so it has a reliable track record.
HTGC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.65%
Div Incr Years5
Div Non Decr Years13
5.3 Sustainability
HTGC pays out 72.53% of its income as dividend. 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.
DP72.53%
EPS Next 2Y-1.26%
EPS Next 3Y-1.74%
HERCULES CAPITAL INC
NYSE:HTGC (2/4/2025, 8:04:00 PM)
Premarket: 20.97 0 (0%)20.97
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners26.66%
Inst Owner Change1%
Ins Owners1.83%
Ins Owner Change3.15%
Market Cap3.51B
Analysts80
Price Target21.28 (1.48%)
Short Float %3.06%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
Yearly Dividend1.88
Dividend Growth(5Y)8.65%
DP72.53%
Div Incr Years5
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.28%
Min EPS beat(2)-2.39%
Max EPS beat(2)-2.17%
EPS beat(4)1
Avg EPS beat(4)0.86%
Min EPS beat(4)-2.39%
Max EPS beat(4)9.08%
EPS beat(8)5
Avg EPS beat(8)3.44%
EPS beat(12)7
Avg EPS beat(12)2.5%
EPS beat(16)8
Avg EPS beat(16)1.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-3.9%
Max Revenue beat(2)-1.01%
Revenue beat(4)2
Avg Revenue beat(4)11.93%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)52.57%
Revenue beat(8)6
Avg Revenue beat(8)7.87%
Revenue beat(12)7
Avg Revenue beat(12)4.63%
Revenue beat(16)8
Avg Revenue beat(16)3.18%
PT rev (1m)0%
PT rev (3m)1.35%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.64%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 10.29 | ||
| P/S | 5.71 | ||
| P/FCF | 86.03 | ||
| P/OCF | 83.6 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.08
EY9.92%
EPS(NY)2.04
Fwd EY9.72%
FCF(TTM)0.24
FCFY1.16%
OCF(TTM)0.25
OCFY1.2%
SpS3.68
BVpS11.05
TBVpS11.05
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 22.15% | ||
| ROCE | 11.41% | ||
| ROIC | 9.02% | ||
| ROICexc | 9.12% | ||
| ROICexgc | 9.12% | ||
| OM | 66.54% | ||
| PM (TTM) | 66.58% | ||
| GM | 83.14% | ||
| FCFM | 6.63% |
ROA(3y)6.57%
ROA(5y)7.07%
ROE(3y)12.95%
ROE(5y)14.32%
ROIC(3y)5.6%
ROIC(5y)5.26%
ROICexc(3y)5.77%
ROICexc(5y)5.46%
ROICexgc(3y)5.78%
ROICexgc(5y)5.48%
ROCE(3y)7.09%
ROCE(5y)6.66%
ROICexcg growth 3Y12.34%
ROICexcg growth 5Y10.18%
ROICexc growth 3Y12.23%
ROICexc growth 5Y10.1%
OM growth 3Y6.47%
OM growth 5Y4.76%
PM growth 3Y-2.62%
PM growth 5Y14.71%
GM growth 3Y2.74%
GM growth 5Y1.42%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 42.58 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 327% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 5.54 | ||
| Cash Conversion | 10.25% | ||
| Profit Quality | 9.96% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.75 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)183.39%
Cap/Depr(5y)155.04%
Cap/Sales(3y)0.09%
Cap/Sales(5y)0.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4%
EPS 3Y14.29%
EPS 5Y11.74%
EPS Q2Q%-1.92%
EPS Next Y-0.82%
EPS Next 2Y-1.26%
EPS Next 3Y-1.74%
EPS Next 5YN/A
Revenue 1Y (TTM)40.57%
Revenue growth 3Y17.04%
Revenue growth 5Y17.26%
Sales Q2Q%7.28%
Revenue Next Year9.61%
Revenue Next 2Y7.31%
Revenue Next 3Y5.67%
Revenue Next 5YN/A
EBIT growth 1Y46.34%
EBIT growth 3Y24.62%
EBIT growth 5Y22.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y115.7%
FCF growth 3Y-31.28%
FCF growth 5YN/A
OCF growth 1Y116.17%
OCF growth 3Y-31%
OCF growth 5YN/A