HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HTGC - US4270965084 - Common Stock
18.24 USD
-0.37 (-1.99%)
18.24 USD
0 (0%)
Overall HTGC gets a fundamental rating of 4 out of 10. We evaluated HTGC against 235 industry peers in the Capital Markets industry. HTGC scores excellent on profitability, but there are concerns on its financial health. HTGC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HTGC had positive earnings in the past year.
HTGC had a negative operating cash flow in the past year.
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 has a better Return On Assets (6.97%) than 82.55% of its industry peers.
With a decent Return On Equity value of 14.04%, HTGC is doing good in the industry, outperforming 74.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.11%, HTGC is in the better half of the industry, outperforming 74.47% of the companies in the same industry.
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 7.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROIC | 6.11% |
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 Profit Margin of 59.47%. This is amongst the best in the industry. HTGC outperforms 93.19% of its industry peers.
In the last couple of years the Profit Margin of HTGC has declined.
HTGC's Operating Margin of 64.99% is amongst the best of the industry. HTGC outperforms 98.30% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC's Gross Margin of 81.23% is amongst the best of the industry. HTGC outperforms 85.96% of its industry peers.
HTGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.99% | ||
| PM (TTM) | 59.47% | ||
| GM | 81.23% |
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
HTGC has an Altman-Z score of 1.29. 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 1.29 is fine compared to the rest of the industry. HTGC outperforms 62.98% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that HTGC is somewhat dependend on debt financing.
HTGC has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 0.95. This is a bad value and indicates that HTGC is not financially healthy enough and could expect problems in meeting its short term obligations.
HTGC has a Current ratio of 0.95. This is in the lower half of the industry: HTGC underperforms 60.00% of its industry peers.
HTGC has a Quick Ratio of 0.95. This is a bad value and indicates that HTGC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, HTGC is in line with its industry, outperforming 40.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -7.21% in the last year.
Measured over the past 5 years, HTGC shows a small growth in Earnings Per Share. The EPS has been growing by 7.35% on average per year.
HTGC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.09%.
Measured over the past years, HTGC shows a quite strong growth in Revenue. The Revenue has been growing by 13.00% on average per year.
EPS 1Y (TTM)-7.21%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-3.92%
Revenue 1Y (TTM)-16.09%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%10.26%
3.2 Future
The Earnings Per Share is expected to grow by 1.19% on average over the next years.
The Revenue is expected to grow by 8.69% on average over the next years. This is quite good.
EPS Next Y-2.12%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue Next Year5.59%
Revenue Next 2Y7.59%
Revenue Next 3Y8.69%
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.
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
With a Price/Earnings ratio of 9.45, the valuation of HTGC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 75.32% of the companies listed in the same industry.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of HTGC.
80.00% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.57, HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
78.72% 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 | 16.17 |
4.3 Compensation for Growth
HTGC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y1.13%
EPS Next 3Y1.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.50%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.39, HTGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 7.41%!
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
HTGC pays out 104.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HTGC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.41%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
18.24
-0.37 (-1.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners28.19%
Inst Owner Change0%
Ins Owners1.73%
Ins Owner Change-1.27%
Market Cap3.31B
Revenue(TTM)516.85M
Net Income(TTM)307.37M
Analysts84.29
Price Target21.22 (16.34%)
Short Float %2.8%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP104.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.18%
Min EPS beat(2)0.34%
Max EPS beat(2)4.02%
EPS beat(4)2
Avg EPS beat(4)-1.44%
Min EPS beat(4)-5.11%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)-0.29%
EPS beat(12)7
Avg EPS beat(12)1.81%
EPS beat(16)9
Avg EPS beat(16)1.52%
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)0.25%
Max Revenue beat(2)3.19%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)5.13%
Revenue beat(12)8
Avg Revenue beat(12)4.68%
Revenue beat(16)9
Avg Revenue beat(16)3.06%
PT rev (1m)-0.63%
PT rev (3m)-1.95%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.49%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 8.87 | ||
| P/S | 6.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.51 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 16.17 |
EPS(TTM)1.93
EY10.58%
EPS(NY)2.06
Fwd EY11.27%
FCF(TTM)-2.2
FCFYN/A
OCF(TTM)-2.2
OCFYN/A
SpS2.84
BVpS12.05
TBVpS12.05
PEG (NY)N/A
PEG (5Y)1.29
Graham Number22.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.04% | ||
| ROCE | 7.74% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 6.16% | ||
| OM | 64.99% | ||
| PM (TTM) | 59.47% | ||
| GM | 81.23% | ||
| 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-Score1
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.4 | ||
| Cap/Depr | 17.58% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.29 |
F-Score1
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)-7.21%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-3.92%
EPS Next Y-2.12%
EPS Next 2Y1.13%
EPS Next 3Y1.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.09%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%10.26%
Revenue Next Year5.59%
Revenue Next 2Y7.59%
Revenue Next 3Y8.69%
Revenue Next 5YN/A
EBIT growth 1Y-18.05%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-212.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-213.28%
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.
What is the valuation status of HERCULES CAPITAL INC (HTGC) stock?
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 7 / 10.
How financially healthy is HERCULES CAPITAL INC?
The financial health rating of HERCULES CAPITAL INC (HTGC) is 1 / 10.
Can you provide the expected EPS growth for HTGC stock?
The Earnings per Share (EPS) of HERCULES CAPITAL INC (HTGC) is expected to decline by -2.12% in the next year.