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. While HTGC has a great profitability rating, there are quite some concerns on its financial health. HTGC has a correct valuation and a medium growth rate. 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.
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 7.74%, HTGC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
HTGC has a better Return On Equity (15.60%) than 80.95% of its industry peers.
HTGC has a better Return On Invested Capital (8.01%) than 82.25% 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 7.24%.
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
Looking at the Profit Margin, with a value of 50.91%, HTGC belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
In the last couple of years the Profit Margin of HTGC has declined.
HTGC has a Operating Margin of 65.78%. This is amongst the best in the industry. HTGC outperforms 98.27% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC has a Gross Margin of 82.38%. This is amongst the best in the industry. HTGC outperforms 86.58% of its industry peers.
HTGC's Gross Margin has been stable in the last couple of years.
| 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
The number of shares outstanding for HTGC has been increased compared to 1 year ago.
Compared to 5 years ago, HTGC has more shares outstanding
Compared to 1 year ago, HTGC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HTGC (1.41) is better than 64.07% of its industry peers.
HTGC has a Debt/Equity ratio of 0.99. This is a neutral value indicating 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.
Looking at the Current ratio, with a value of 1.56, HTGC is in the better half of the industry, outperforming 65.37% of the companies in the same industry.
HTGC has a Quick Ratio of 1.56. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
HTGC has a Quick ratio of 1.56. This is in the better half 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%.
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 28.52%.
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.
The Revenue is expected to grow by 7.45% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 9.03, the valuation of HTGC can be described as reasonable.
78.36% of the companies in the same industry are more expensive than HTGC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.91. HTGC is valued rather cheaply when compared to this.
HTGC is valuated reasonably with a Price/Forward Earnings ratio of 8.66.
79.65% of the companies in the same industry are more expensive than HTGC, based on the Price/Forward Earnings ratio.
HTGC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
HTGC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HTGC is cheaper than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.33 |
4.3 Compensation for Growth
The excellent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y0.84%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
HTGC has a Yearly Dividend Yield of 9.23%, which is a nice return.
Compared to an average industry Dividend Yield of 8.18, HTGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, HTGC pays a better dividend.
| 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%
17.69
+0.29 (+1.67%)
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 Cap3.10B
Analysts80
Price Target20.46 (15.66%)
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 | 9.03 | ||
| Fwd PE | 8.66 | ||
| P/S | 5.06 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.55 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 12.33 |
EPS(TTM)1.96
EY11.08%
EPS(NY)2.04
Fwd EY11.55%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)-0.57
OCFYN/A
SpS3.49
BVpS11.4
TBVpS11.4
PEG (NY)N/A
PEG (5Y)1.23
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