HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - New York Stock Exchange, Inc. - US4270965084 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HTGC. HTGC was compared to 227 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 is not valued too expensively and it also shows a decent growth rate. 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 has reported a negative cash flow from operations.
In the past 5 years HTGC has always 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
With an excellent Return On Assets value of 9.18%, HTGC belongs to the best of the industry, outperforming 86.34% of the companies in the same industry.
HTGC has a Return On Equity of 17.68%. This is amongst the best in the industry. HTGC outperforms 84.14% of its industry peers.
HTGC has a Return On Invested Capital of 8.51%. This is amongst the best in the industry. HTGC outperforms 81.94% 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 7.09%.
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
HTGC has a better Profit Margin (57.20%) than 91.19% of its industry peers.
In the last couple of years the Profit Margin of HTGC has declined.
HTGC has a Operating Margin of 65.84%. This is amongst the best in the industry. HTGC outperforms 98.24% 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 82.77%, HTGC belongs to the top of the industry, outperforming 87.22% 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 | 65.84% | ||
| 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
Compared to 1 year ago, HTGC has more shares outstanding
Compared to 5 years ago, HTGC has more shares outstanding
The debt/assets ratio for HTGC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC has a Altman-Z score of 1.58. This is in the better half of the industry: HTGC outperforms 66.08% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that HTGC is somewhat dependend on debt financing.
The Debt to Equity ratio of HTGC (0.89) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
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 68.72% of its industry peers.
HTGC has a Quick Ratio of 1.99. 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 1.99 is fine compared to the rest of the industry. HTGC outperforms 69.16% 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 -3.83% in the last year.
The Earnings Per Share has been growing slightly by 7.35% on average over the past years.
HTGC shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.55%.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.83%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)33.55%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-33.39%
3.2 Future
The Earnings Per Share is expected to decrease by -0.95% on average over the next years.
HTGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.21% 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 3Y1.21%
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
A Price/Earnings ratio of 8.92 indicates a reasonable valuation of HTGC.
Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 75.33% of the companies listed in the same industry.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.96 indicates a reasonable valuation of HTGC.
HTGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 72.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
HTGC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HTGC is cheaper than 83.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
HTGC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
5. Dividend
5.1 Amount
HTGC has a Yearly Dividend Yield of 9.12%, which is a nice return.
HTGC's Dividend Yield is a higher than the industry average which is at 8.41.
Compared to an average S&P500 Dividend Yield of 2.51, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
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.
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
HTGC pays out 86.25% 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.
DP86.25%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
17.93
+0.31 (+1.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.5%
Inst Owner Change-0.76%
Ins Owners1.86%
Ins Owner Change4.72%
Market Cap3.10B
Analysts80
Price Target22.38 (24.82%)
Short Float %3.65%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
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)0%
PT rev (3m)5.16%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 8.96 | ||
| P/S | 5.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)2.01
EY11.21%
EPS(NY)2
Fwd EY11.16%
FCF(TTM)-0.69
FCFYN/A
OCF(TTM)-0.68
OCFYN/A
SpS3.55
BVpS11.49
TBVpS11.49
PEG (NY)N/A
PEG (5Y)1.21
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 | 1.58 |
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)-3.83%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-12.5%
EPS Next Y-0.48%
EPS Next 2Y1.19%
EPS Next 3Y-0.95%
EPS Next 5YN/A
Revenue 1Y (TTM)33.55%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-33.39%
Revenue Next Year4.63%
Revenue Next 2Y6.77%
Revenue Next 3Y1.21%
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