HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - New York Stock Exchange, Inc. - US4270965084 - Common Stock - Currency: USD
Overall HTGC gets a fundamental rating of 5 out of 10. We evaluated HTGC against 232 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HTGC was profitable.
HTGC had a negative 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
The Return On Assets of HTGC (7.74%) is better than 84.91% of its industry peers.
Looking at the Return On Equity, with a value of 15.60%, HTGC is in the better half of the industry, outperforming 78.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.01%, HTGC belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HTGC is in line with the industry average of 7.85%.
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 92.24% of the companies in the same industry.
HTGC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 65.78%, HTGC belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
In the last couple of years the Operating Margin of HTGC has grown nicely.
The Gross Margin of HTGC (82.38%) is better than 86.21% 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 | 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
HTGC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HTGC has been increased compared to 5 years ago.
HTGC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC's Altman-Z score of 1.45 is fine compared to the rest of the industry. HTGC outperforms 61.64% 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 | 1.45 |
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 62.50% of the companies in the same industry.
A Quick Ratio of 1.56 indicates that HTGC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.56, HTGC is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| 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%.
HTGC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.35% yearly.
HTGC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.52%.
HTGC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.00% yearly.
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 Year1.98%
Revenue Next 2Y5.84%
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
A Price/Earnings ratio of 9.19 indicates a reasonable valuation of HTGC.
HTGC's Price/Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 75.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, HTGC is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.81, the valuation of HTGC can be described as very reasonable.
HTGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HTGC is cheaper than 77.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (22.19), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
HTGC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HTGC is cheaper than 84.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
The decent profitability rating of HTGC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y0.84%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.83%, HTGC is a good candidate for dividend investing.
HTGC's Dividend Yield is a higher than the industry average which is at 7.91.
Compared to an average S&P500 Dividend Yield of 2.40, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
5.2 History
The dividend of HTGC is nicely growing with an annual growth rate of 7.41%!
HTGC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
98.70% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
HTGC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP98.7%
EPS Next 2Y0.84%
EPS Next 3Y0.66%
18.01
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.89%
Inst Owner Change7.57%
Ins Owners1.83%
Ins Owner Change4.95%
Market Cap3.16B
Analysts80
Price Target20.46 (13.6%)
Short Float %3.11%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP98.7%
Div Incr Years0
Div Non Decr Years0
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)0%
PT rev (3m)-8.58%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-2.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.72%
Revenue NQ rev (1m)-2.16%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.81 | ||
| P/S | 5.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)1.96
EY10.88%
EPS(NY)2.04
Fwd EY11.35%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)-0.57
OCFYN/A
SpS3.49
BVpS11.4
TBVpS11.4
PEG (NY)N/A
PEG (5Y)1.25
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 | 1.45 |
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 Year1.98%
Revenue Next 2Y5.84%
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