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 scores excellent on profitability, but there are concerns on its financial health. HTGC is not valued too expensively and it also shows a decent growth rate. Finally HTGC also has an excellent dividend rating.
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.
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
HTGC has a better Return On Assets (7.74%) than 85.71% of its industry peers.
HTGC has a Return On Equity of 15.60%. This is amongst the best in the industry. HTGC outperforms 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.01%, HTGC belongs to the top of the industry, outperforming 82.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HTGC is in line with the industry average of 7.24%.
The 3 year average ROIC (6.33%) for HTGC is below the current ROIC(8.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 15.6% | ||
| ROIC | 8.01% |
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 (50.91%) than 88.31% of its industry peers.
In the last couple of years the Profit Margin of HTGC has declined.
HTGC's Operating Margin of 65.78% is amongst the best of the industry. HTGC outperforms 98.27% 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 82.38%, HTGC belongs to the top of the industry, outperforming 86.58% 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 | 65.78% | ||
| PM (TTM) | 50.91% | ||
| GM | 82.38% |
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
HTGC has more shares outstanding than it did 5 years ago.
HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
HTGC has an Altman-Z score of 1.41. This is a bad value and indicates that HTGC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.41, HTGC is doing good in the industry, outperforming 64.07% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that HTGC is somewhat dependend on debt financing.
HTGC has a Debt to Equity ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.56 indicates that HTGC should not have too much problems paying its short term obligations.
HTGC has a Current ratio of 1.56. This is in the better half of the industry: HTGC outperforms 65.37% of its industry peers.
A Quick Ratio of 1.56 indicates that HTGC should not have too much problems paying its short term obligations.
HTGC's Quick ratio of 1.56 is fine compared to the rest of the industry. HTGC outperforms 65.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
HTGC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.11%.
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.
The Revenue has grown by 28.52% in the past year. This is a very strong growth!
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)28.52%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-1.68%
3.2 Future
Based on estimates for the next years, HTGC will show a small growth in Earnings Per Share. The EPS will grow by 0.66% on average per year.
HTGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y-2.82%
EPS Next 2Y0.84%
EPS Next 3Y0.66%
EPS Next 5YN/A
Revenue Next Year4.22%
Revenue Next 2Y6.88%
Revenue Next 3Y7.45%
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 8.89, the valuation of HTGC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 78.79% of the companies listed in the same industry.
HTGC is valuated cheaply when we compare the Price/Earnings ratio to 26.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.53, which indicates a very decent valuation of HTGC.
Based on the Price/Forward Earnings ratio, HTGC is valued cheaper than 80.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (22.13), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
HTGC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HTGC is cheaper than 84.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
The excellent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y0.84%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.23%, HTGC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.17, HTGC pays a bit more dividend than its industry peers.
HTGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.23% |
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
98.70% of the earnings are spent on dividend by HTGC. 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.
DP98.7%
EPS Next 2Y0.84%
EPS Next 3Y0.66%
17.43
-0.22 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.5%
Inst Owner Change7.59%
Ins Owners1.86%
Ins Owner Change4.95%
Market Cap3.06B
Analysts80
Price Target20.46 (17.38%)
Short Float %3.78%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.23% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP98.7%
Div Incr Years5
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.06%
Min EPS beat(2)-5.11%
Max EPS beat(2)-5.01%
EPS beat(4)0
Avg EPS beat(4)-3.67%
Min EPS beat(4)-5.11%
Max EPS beat(4)-2.17%
EPS beat(8)3
Avg EPS beat(8)0.59%
EPS beat(12)6
Avg EPS beat(12)1.69%
EPS beat(16)7
Avg EPS beat(16)0.51%
Revenue beat(2)0
Avg Revenue beat(2)-5.08%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-4.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.77%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)-1.01%
Revenue beat(8)4
Avg Revenue beat(8)5.52%
Revenue beat(12)7
Avg Revenue beat(12)4.42%
Revenue beat(16)7
Avg Revenue beat(16)2.54%
PT rev (1m)-8.58%
PT rev (3m)-7.12%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-4.58%
EPS NY rev (1m)-2.35%
EPS NY rev (3m)-3.72%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.53 | ||
| P/S | 4.99 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)1.96
EY11.24%
EPS(NY)2.04
Fwd EY11.73%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)-0.57
OCFYN/A
SpS3.49
BVpS11.4
TBVpS11.4
PEG (NY)N/A
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 15.6% | ||
| ROCE | 10.14% | ||
| ROIC | 8.01% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 8.12% | ||
| OM | 65.78% | ||
| PM (TTM) | 50.91% | ||
| GM | 82.38% | ||
| 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-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.9 | ||
| Cap/Depr | 114.09% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.41 |
F-Score3
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-2.82%
EPS Next 2Y0.84%
EPS Next 3Y0.66%
EPS Next 5YN/A
Revenue 1Y (TTM)28.52%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%-1.68%
Revenue Next Year4.22%
Revenue Next 2Y6.88%
Revenue Next 3Y7.45%
Revenue Next 5YN/A
EBIT growth 1Y26.94%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y68.66%
OCF growth 3YN/A
OCF growth 5YN/A