HERCULES CAPITAL INC (HTGC)
US4270965084 - Common Stock
HTGC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. HTGC scores excellent on profitability, but there are some minor concerns on its financial health. HTGC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HTGC had positive earnings in the past year.
HTGC had a positive 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
Looking at the Return On Assets, with a value of 9.78%, HTGC belongs to the top of the industry, outperforming 85.10% of the companies in the same industry.
HTGC has a Return On Equity of 18.54%. This is amongst the best in the industry. HTGC outperforms 84.13% of its industry peers.
HTGC has a better Return On Invested Capital (7.15%) than 76.92% of its industry peers.
HTGC had an Average Return On Invested Capital over the past 3 years of 5.60%. This is below the industry average of 8.34%.
The last Return On Invested Capital (7.15%) for HTGC is above the 3 year average (5.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.78% | ||
| ROE | 18.54% | ||
| ROIC | 7.15% |
ROA(3y)6.57%
ROA(5y)7.07%
ROE(3y)12.95%
ROE(5y)14.32%
ROIC(3y)5.6%
ROIC(5y)5.26%
1.3 Margins
Looking at the Profit Margin, with a value of 72.56%, HTGC belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
HTGC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 66.01%, HTGC belongs to the top of the industry, outperforming 97.12% of the companies in the same industry.
HTGC's Operating Margin has improved in the last couple of years.
HTGC's Gross Margin of 83.19% is amongst the best of the industry. HTGC outperforms 83.65% 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 | 66.01% | ||
| PM (TTM) | 72.56% | ||
| GM | 83.19% |
OM growth 3Y6.47%
OM growth 5Y4.76%
PM growth 3Y-2.62%
PM growth 5Y14.71%
GM growth 3Y2.74%
GM growth 5Y1.42%
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 has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.63, HTGC is doing good in the industry, outperforming 67.31% of the companies in the same industry.
The Debt to FCF ratio of HTGC is 23.07, which is on the high side as it means it would take HTGC, 23.07 years of fcf income to pay off all of its debts.
HTGC has a Debt to FCF ratio of 23.07. This is comparable to the rest of the industry: HTGC outperforms 45.67% of its industry peers.
HTGC has a Debt/Equity ratio of 0.86. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, HTGC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 23.07 | ||
| Altman-Z | 1.63 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 2.22. This indicates that HTGC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HTGC (2.22) is better than 71.15% of its industry peers.
HTGC has a Quick Ratio of 2.22. This indicates that HTGC is financially healthy and has no problem in meeting its short term obligations.
HTGC has a better Quick ratio (2.22) than 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
HTGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.22%, which is quite impressive.
The Earnings Per Share has been growing by 11.74% on average over the past years. This is quite good.
The Revenue has grown by 43.18% in the past year. This is a very strong growth!
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 17.26% on average per year.
EPS 1Y (TTM)41.22%
EPS 3Y14.29%
EPS 5Y11.74%
EPS growth Q2Q19.15%
Revenue 1Y (TTM)43.18%
Revenue growth 3Y17.04%
Revenue growth 5Y17.26%
Revenue growth Q2Q22.36%
3.2 Future
Based on estimates for the next years, HTGC will show a decrease in Earnings Per Share. The EPS will decrease by -1.29% on average per year.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y-0.84%
EPS Next 2Y-1.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.35%
Revenue Next 2Y7.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 9.07, the valuation of HTGC can be described as reasonable.
Based on the Price/Earnings ratio, HTGC is valued a bit cheaper than the industry average as 74.52% of the companies are valued more expensively.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
HTGC is valuated reasonably with a Price/Forward Earnings ratio of 9.14.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than 71.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. HTGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
HTGC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 73.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HTGC is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.54 | ||
| EV/EBITDA | 14.66 |
4.3 Compensation for Growth
HTGC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-1.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HTGC has a Yearly Dividend Yield of 8.77%, which is a nice return.
HTGC's Dividend Yield is a higher than the industry average which is at 7.77.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 8.65%!
HTGC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
81.89% 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.
DP81.89%
EPS Next 2Y-1.29%
EPS Next 3YN/A
HERCULES CAPITAL INC
NYSE:HTGC (4/25/2024, 7:04:00 PM)
After market: 19 +0.05 (+0.26%)18.95
-0.01 (-0.05%)
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 Cap3.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
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)
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Min EPS beat(4)
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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)
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Min Revenue beat(4)
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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 | 9.07 | ||
| Fwd PE | 9.14 | ||
| 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)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.78% | ||
| ROE | 18.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 66.01% | ||
| PM (TTM) | 72.56% | ||
| GM | 83.19% | ||
| 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 | 0.86 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 | ||
| 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)41.22%
EPS 3Y14.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)43.18%
Revenue growth 3Y17.04%
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