HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - New York Stock Exchange, Inc. - US4270965084 - Common Stock - Currency: USD
HTGC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 231 industry peers in the Capital Markets industry. HTGC has an excellent profitability rating, but there are concerns on its financial health. HTGC is valued correctly, but it does not seem to be growing. Finally HTGC also has an excellent dividend rating.
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.
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 9.18% is amongst the best of the industry. HTGC outperforms 86.52% of its industry peers.
The Return On Equity of HTGC (17.68%) is better than 83.91% of its industry peers.
The Return On Invested Capital of HTGC (8.51%) is better than 81.74% 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 7.08%.
The 3 year average ROIC (6.33%) for HTGC is below the current ROIC(8.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 17.68% | ||
| ROIC | 8.51% |
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 (57.20%) is better than 91.30% of its industry peers.
HTGC's Profit Margin has declined in the last couple of years.
The Operating Margin of HTGC (65.84%) is better than 98.26% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC's Gross Margin of 82.77% is amongst the best of the industry. HTGC outperforms 87.39% of its industry peers.
HTGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.84% | ||
| PM (TTM) | 57.2% | ||
| GM | 82.77% |
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.
HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC has a Altman-Z score of 1.57. This is in the better half of the industry: HTGC outperforms 64.78% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that HTGC is somewhat dependend on debt financing.
HTGC's Debt to Equity ratio of 0.89 is in line compared to the rest of the industry. HTGC outperforms 57.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.99 indicates that HTGC should not have too much problems paying its short term obligations.
The Current ratio of HTGC (1.99) is better than 68.70% of its industry peers.
A Quick Ratio of 1.99 indicates that HTGC should not have too much problems paying its short term obligations.
The Quick ratio of HTGC (1.99) is better than 69.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -7.11% in the last year.
The Earnings Per Share has been growing slightly by 7.35% on average over the past years.
Looking at the last year, HTGC shows a small growth in Revenue. The Revenue has grown by 7.15% in the last year.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.11%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-10%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-1.68%
3.2 Future
HTGC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.95% yearly.
HTGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y-0.48%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y6.77%
Revenue Next 3Y6.03%
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 9.01, which indicates a very decent valuation of HTGC.
74.78% of the companies in the same industry are more expensive than HTGC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HTGC to the average of the S&P500 Index (28.18), we can say HTGC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of HTGC.
76.09% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (20.81), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
84.78% 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 | 11.72 |
4.3 Compensation for Growth
HTGC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.98%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is a higher than the industry average which is at 8.40.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.98% |
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.
HTGC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years5
Div Non Decr Years13
5.3 Sustainability
86.25% 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.
DP86.25%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
17.65
-0.16 (-0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.5%
Inst Owner Change-1.63%
Ins Owners1.86%
Ins Owner Change4.72%
Market Cap3.10B
Analysts80
Price Target21.61 (22.44%)
Short Float %3.64%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.98% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP86.25%
Div Incr Years5
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.64%
Min EPS beat(2)-5.11%
Max EPS beat(2)-2.17%
EPS beat(4)0
Avg EPS beat(4)-2.69%
Min EPS beat(4)-5.11%
Max EPS beat(4)-1.08%
EPS beat(8)4
Avg EPS beat(8)1.47%
EPS beat(12)6
Avg EPS beat(12)1.6%
EPS beat(16)7
Avg EPS beat(16)0.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.53%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.06%
Revenue beat(8)5
Avg Revenue beat(8)6.09%
Revenue beat(12)7
Avg Revenue beat(12)4.18%
Revenue beat(16)7
Avg Revenue beat(16)2.52%
PT rev (1m)-3.42%
PT rev (3m)1.56%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 8.58 | ||
| P/S | 5.03 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 11.72 |
EPS(TTM)1.96
EY11.1%
EPS(NY)2.06
Fwd EY11.66%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)-0.67
OCFYN/A
SpS3.51
BVpS11.34
TBVpS11.34
PEG (NY)N/A
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.18% | ||
| ROE | 17.68% | ||
| ROCE | 10.78% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.78% | ||
| ROICexgc | 8.79% | ||
| OM | 65.84% | ||
| PM (TTM) | 57.2% | ||
| GM | 82.77% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 151.29% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 5.2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 1.57 |
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)-7.11%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-10%
EPS Next Y-0.48%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue 1Y (TTM)7.15%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-1.68%
Revenue Next Year4.63%
Revenue Next 2Y6.77%
Revenue Next 3Y6.03%
Revenue Next 5YN/A
EBIT growth 1Y33.2%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-276.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-272.95%
OCF growth 3YN/A
OCF growth 5YN/A