HERCULES CAPITAL INC (HTGC)
US4270965084 - Common Stock
Overall HTGC gets a fundamental rating of 6 out of 10. We evaluated HTGC against 206 industry peers in the Capital Markets industry. HTGC has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: HTGC is growing strongly while it also seems undervalued. Finally HTGC also has an excellent dividend rating.
1. Profitability
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.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
HTGC's Return On Assets of 8.31% is amongst the best of the industry. HTGC outperforms 83.74% of its industry peers.
Looking at the Return On Equity, with a value of 16.77%, HTGC belongs to the top of the industry, outperforming 81.28% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.74%, HTGC is doing good in the industry, outperforming 73.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HTGC is below the industry average of 9.54%.
The last Return On Invested Capital (6.74%) for HTGC is above the 3 year average (4.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 16.77% | ||
| ROIC | 6.74% |
ROA(3y)6.18%
ROA(5y)5.89%
ROE(3y)12.59%
ROE(5y)12.2%
ROIC(3y)4.82%
ROIC(5y)4.72%
1.3 Margins
With an excellent Profit Margin value of 63.24%, HTGC belongs to the best of the industry, outperforming 93.60% of the companies in the same industry.
In the last couple of years the Profit Margin of HTGC has declined.
Looking at the Operating Margin, with a value of 63.92%, HTGC belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
HTGC's Operating Margin has improved in the last couple of years.
The Gross Margin of HTGC (82.77%) is better than 83.74% of its industry peers.
In the last couple of years the Gross Margin of HTGC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 63.92% | ||
| PM (TTM) | 63.24% | ||
| GM | 82.77% |
OM growth 3Y3.01%
OM growth 5Y2.98%
PM growth 3Y-21.68%
PM growth 5Y-5.44%
GM growth 3Y1.55%
GM growth 5Y1.29%
2. Health
2.1 Basic Checks
Compared to 1 year ago, HTGC has more shares outstanding
HTGC has more shares outstanding than it did 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 1.28, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC's Altman-Z score of 1.28 is in line compared to the rest of the industry. HTGC outperforms 58.62% 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 | 1.28 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.24. 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 Current ratio of 1.24 is in line compared to the rest of the industry. HTGC outperforms 51.72% of its industry peers.
HTGC has a Quick Ratio of 1.24. 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 1.24 is in line compared to the rest of the industry. HTGC outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
HTGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.06%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
Looking at the last year, HTGC shows a very strong growth in Revenue. The Revenue has grown by 49.05%.
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 11.00% on average per year.
EPS 1Y (TTM)47.06%
EPS 3Y1.63%
EPS 5Y4.28%
EPS growth Q2Q33.33%
Revenue 1Y (TTM)49.05%
Revenue growth 3Y6.29%
Revenue growth 5Y11%
Revenue growth Q2Q38.6%
3.2 Future
Based on estimates for the next years, HTGC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.70% on average per year.
The Revenue is expected to grow by 17.76% on average over the next years. This is quite good.
EPS Next Y40.52%
EPS Next 2Y17.63%
EPS Next 3Y10.7%
EPS Next 5YN/A
Revenue Next Year45.85%
Revenue Next 2Y25.01%
Revenue Next 3Y17.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
HTGC is valuated cheaply with a Price/Earnings ratio of 7.71.
HTGC's Price/Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 79.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.54, HTGC is valued rather cheaply.
A Price/Forward Earnings ratio of 7.53 indicates a rather cheap valuation of HTGC.
Based on the Price/Forward Earnings ratio, HTGC is valued cheaper than 80.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than 69.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
HTGC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)0.19
PEG (5Y)1.8
EPS Next 2Y17.63%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.44%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.71, 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 2.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.44% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 9.80%!
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)9.8%
Div Incr Years5
Div Non Decr Years12
5.3 Sustainability
96.72% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
The dividend of HTGC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP96.72%
EPS Next 2Y17.63%
EPS Next 3Y10.7%
HERCULES CAPITAL INC
NYSE:HTGC (12/11/2023, 3:15:00 PM)
After market: 15.42 0 (0%)15.42
-0.04 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 7.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.19
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 16.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 63.92% | ||
| PM (TTM) | 63.24% | ||
| GM | 82.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)47.06%
EPS 3Y1.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y40.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)49.05%
Revenue growth 3Y6.29%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y