HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - NYSE:HTGC - US4270965084 - Common Stock
19.125 USD
+0.02 (+0.13%)
We assign a fundamental rating of 4 out of 10 to HTGC. HTGC was compared to 236 industry peers in the Capital Markets industry. HTGC has a medium profitability rating, but doesn't score so well on its financial health evaluation. HTGC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
HTGC had a negative operating cash flow in the past year.
In the past 5 years HTGC has always been profitable.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
HTGC has a Return On Assets of 6.11%. This is in the better half of the industry: HTGC outperforms 76.27% of its industry peers.
HTGC's Return On Equity of 12.16% is fine compared to the rest of the industry. HTGC outperforms 66.10% of its industry peers.
The Return On Invested Capital of HTGC (6.19%) is better than 72.46% 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 7.59%.
| 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
The Profit Margin of HTGC (51.90%) is better than 94.07% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
The Operating Margin of HTGC (65.58%) is better than 97.88% of its industry peers.
HTGC's Operating Margin has improved in the last couple of years.
HTGC has a better Gross Margin (81.71%) than 86.86% 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 | 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
HTGC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HTGC has more shares outstanding
Compared to 1 year ago, HTGC has a worse debt to assets ratio.
2.2 Solvency
HTGC has an Altman-Z score of 1.37. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
HTGC's Altman-Z score of 1.37 is fine compared to the rest of the industry. HTGC outperforms 62.71% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that HTGC is somewhat dependend on debt financing.
The Debt to Equity ratio of HTGC (0.96) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.26. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
HTGC has a Current ratio of 1.26. This is comparable to the rest of the industry: HTGC outperforms 56.36% of its industry peers.
HTGC has a Quick Ratio of 1.26. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
HTGC has a Quick ratio of 1.26. This is comparable to the rest of the industry: HTGC outperforms 57.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
HTGC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.70%.
HTGC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
The Revenue for HTGC has decreased by -17.03% in the past year. This is quite bad
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
HTGC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.01% yearly.
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y-2.64%
EPS Next 2Y0.2%
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
The Price/Earnings ratio is 9.81, which indicates a very decent valuation of HTGC.
HTGC's Price/Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 73.73% of the companies in the same industry.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.48, which indicates a very decent valuation of HTGC.
HTGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 74.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.64. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than the industry average as 79.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.57 |
4.3 Compensation for Growth
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
HTGC has a Yearly Dividend Yield of 8.27%, which is a nice return.
Compared to an average industry Dividend Yield of 8.21, HTGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.27% |
5.2 History
On average, the dividend of HTGC grows each year by 7.41%, which is quite nice.
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
119.58% 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.
DP119.58%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
NYSE:HTGC (9/26/2025, 12:17:25 PM)
19.125
+0.02 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.88%
Inst Owner Change82.45%
Ins Owners1.81%
Ins Owner Change-1.19%
Market Cap3.47B
Analysts81.43
Price Target21.64 (13.15%)
Short Float %2.67%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.27% |
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)2.88%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-1.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.48 | ||
| P/S | 6.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.62 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 16.57 |
EPS(TTM)1.95
EY10.2%
EPS(NY)2.02
Fwd EY10.55%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)-1.67
OCFYN/A
SpS2.77
BVpS11.84
TBVpS11.84
PEG (NY)N/A
PEG (5Y)1.33
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%
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-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 | 1.37 |
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-2.64%
EPS Next 2Y0.2%
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