HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - NYSE:HTGC - US4270965084 - Common Stock
17.62 USD
-0.02 (-0.11%)
17.66 USD
+0.04 (+0.23%)
Taking everything into account, HTGC scores 4 out of 10 in our fundamental rating. HTGC was compared to 236 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
HTGC had a negative operating cash flow in the past year.
Each year in the past 5 years HTGC has 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 Return On Assets of 6.11%. This is in the better half of the industry: HTGC outperforms 74.58% of its industry peers.
With a decent Return On Equity value of 12.16%, HTGC is doing good in the industry, outperforming 65.25% of the companies in the same industry.
HTGC's Return On Invested Capital of 6.19% is fine compared to the rest of the industry. HTGC outperforms 71.61% 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 7.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.16% | ||
| ROIC | 6.19% |
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 51.90% is amongst the best of the industry. HTGC outperforms 93.64% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
HTGC has a better Operating Margin (65.58%) than 98.31% of its industry peers.
HTGC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.71%, HTGC belongs to the top of the industry, outperforming 86.44% of the companies in the same industry.
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 | 65.58% | ||
| PM (TTM) | 51.9% | ||
| GM | 81.71% |
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
The number of shares outstanding for HTGC has been increased compared to 1 year ago.
Compared to 5 years ago, HTGC has more shares outstanding
HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
HTGC has an Altman-Z score of 1.30. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.30, HTGC is doing good in the industry, outperforming 61.02% of the companies in the same industry.
HTGC has a Debt/Equity ratio of 0.96. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, HTGC is in line with its industry, outperforming 51.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.26 indicates that HTGC should not have too much problems paying its short term obligations.
The Current ratio of HTGC (1.26) is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that HTGC should not have too much problems paying its short term obligations.
HTGC's Quick ratio of 1.26 is in line compared to the rest of the industry. HTGC outperforms 57.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -6.70% in the last year.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
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)-6.7%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-1.96%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%9.96%
3.2 Future
The Earnings Per Share is expected to decrease by -0.01% 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 9.25% yearly.
EPS Next Y-2.42%
EPS Next 2Y0.31%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue Next Year5.77%
Revenue Next 2Y6.19%
Revenue Next 3Y9.25%
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
A Price/Earnings ratio of 9.04 indicates a reasonable valuation of HTGC.
74.58% of the companies in the same industry are more expensive than HTGC, based on the Price/Earnings ratio.
HTGC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
With a Price/Forward Earnings ratio of 8.71, the valuation of HTGC can be described as very reasonable.
HTGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 79.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
79.66% 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 | 15.77 |
4.3 Compensation for Growth
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y0.31%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
HTGC has a Yearly Dividend Yield of 9.32%, which is a nice return.
Compared to an average industry Dividend Yield of 8.53, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 7.41%!
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
119.58% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
The Dividend Rate of HTGC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP119.58%
EPS Next 2Y0.31%
EPS Next 3Y-0.01%
17.62
-0.02 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners27.52%
Inst Owner Change-38.02%
Ins Owners1.75%
Ins Owner Change-1.21%
Market Cap3.20B
Revenue(TTM)504.00M
Net Income(TTM)261.59M
Analysts81.43
Price Target21.64 (22.81%)
Short Float %2.74%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP119.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.49%
Min EPS beat(2)-5.01%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-2.07%
Min EPS beat(4)-5.11%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)0.24%
EPS beat(12)7
Avg EPS beat(12)2.38%
EPS beat(16)8
Avg EPS beat(16)1.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)3.19%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)5.31%
Revenue beat(12)8
Avg Revenue beat(12)4.88%
Revenue beat(16)8
Avg Revenue beat(16)2.97%
PT rev (1m)0%
PT rev (3m)2.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 8.71 | ||
| P/S | 6.35 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 15.77 |
EPS(TTM)1.95
EY11.07%
EPS(NY)2.02
Fwd EY11.48%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)-1.67
OCFYN/A
SpS2.77
BVpS11.84
TBVpS11.84
PEG (NY)N/A
PEG (5Y)1.23
Graham Number22.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.16% | ||
| ROCE | 7.84% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.28% | ||
| OM | 65.58% | ||
| PM (TTM) | 51.9% | ||
| GM | 81.71% | ||
| 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-Score2
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.24 | ||
| Cap/Depr | 17.51% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.3 |
F-Score2
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)-6.7%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-1.96%
EPS Next Y-2.42%
EPS Next 2Y0.31%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%9.96%
Revenue Next Year5.77%
Revenue Next 2Y6.19%
Revenue Next 3Y9.25%
Revenue Next 5YN/A
EBIT growth 1Y-18.1%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-362.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-365.1%
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 6 / 10.
Can you provide the financial health for HTGC stock?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 2 / 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 -2.42% in the next year.