HERCULES CAPITAL INC (HTGC) Stock Fundamental Analysis
NYSE:HTGC - US4270965084 - Common Stock
19.52 USD
+0.09 (+0.46%)
19.5999 USD
+0.08 (+0.41%)
Overall HTGC gets a fundamental rating of 4 out of 10. We evaluated HTGC against 239 industry peers in the Capital Markets industry. While HTGC is still in line with the averages on profitability rating, there are concerns on its financial health. HTGC has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years HTGC has been profitable.
In multiple years HTGC reported negative operating cash flow during the last 5 years.
1.2 Ratios
HTGC has a Return On Assets of 6.11%. This is in the better half of the industry: HTGC outperforms 76.99% of its industry peers.
With a decent Return On Equity value of 12.16%, HTGC is doing good in the industry, outperforming 67.36% of the companies in the same industry.
HTGC has a Return On Invested Capital of 6.19%. This is in the better half of the industry: HTGC outperforms 71.97% 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 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.16% | ||
| ROIC | 6.19% |
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 51.90%, HTGC belongs to the top of the industry, outperforming 94.56% of the companies in the same industry.
HTGC's Profit Margin has declined in the last couple of years.
The Operating Margin of HTGC (65.58%) is better than 97.91% of its industry peers.
In the last couple of years the Operating Margin of HTGC has grown nicely.
HTGC's Gross Margin of 81.71% is amongst the best of the industry. HTGC outperforms 86.61% 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 | 65.58% | ||
| PM (TTM) | 51.9% | ||
| GM | 81.71% |
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.
The number of shares outstanding for HTGC has been increased compared to 5 years ago.
The debt/assets ratio for HTGC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that HTGC is in the distress zone and has some risk of bankruptcy.
HTGC has a better Altman-Z score (1.39) than 62.76% of its industry peers.
HTGC has a Debt/Equity ratio of 0.96. This is a neutral value indicating HTGC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.96, HTGC perfoms like the industry average, outperforming 53.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HTGC has a Current Ratio of 1.26. This is a normal value and indicates that HTGC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.26, HTGC perfoms like the industry average, outperforming 56.07% of the companies in the same industry.
HTGC has a Quick Ratio of 1.26. 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 (1.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for HTGC have decreased by -6.70% 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.
Looking at the last year, HTGC shows a very negative growth in Revenue. The Revenue has decreased by -17.03% in the last year.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.7%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-1.96%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%9.96%
3.2 Future
The Earnings Per Share is expected to decrease by -0.01% on average over the next years.
Based on estimates for the next years, HTGC will show a quite strong growth in Revenue. The Revenue will grow by 9.25% on average per year.
EPS Next Y-2.64%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y6.19%
Revenue Next 3Y9.25%
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
The Price/Earnings ratio is 10.01, which indicates a very decent valuation of HTGC.
Compared to the rest of the industry, the Price/Earnings ratio of HTGC indicates a somewhat cheap valuation: HTGC is cheaper than 76.15% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. HTGC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.67 indicates a reasonable valuation of HTGC.
Based on the Price/Forward Earnings ratio, HTGC is valued a bit cheaper than the industry average as 76.15% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HTGC to the average of the S&P500 Index (22.76), we can say HTGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HTGC is valued a bit cheaper than 79.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.8 |
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)1.36
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.23%, 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 2.32, HTGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.23% |
5.2 History
On average, the dividend of HTGC grows each year by 7.41%, which is quite nice.
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
119.58% of the earnings are spent on dividend by HTGC. This is not a sustainable payout ratio.
HTGC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP119.58%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
19.52
+0.09 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.88%
Inst Owner Change82.45%
Ins Owners1.81%
Ins Owner Change-1.19%
Market Cap3.55B
Analysts81.43
Price Target21.64 (10.86%)
Short Float %2.92%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.23% |
Yearly Dividend1.85
Dividend Growth(5Y)7.41%
DP119.58%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.49%
Min EPS beat(2)-5.01%
Max EPS beat(2)4.02%
EPS beat(4)1
Avg EPS beat(4)-2.07%
Min EPS beat(4)-5.11%
Max EPS beat(4)4.02%
EPS beat(8)3
Avg EPS beat(8)0.24%
EPS beat(12)7
Avg EPS beat(12)2.38%
EPS beat(16)8
Avg EPS beat(16)1.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)3.19%
Revenue beat(4)1
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)5.31%
Revenue beat(12)8
Avg Revenue beat(12)4.88%
Revenue beat(16)8
Avg Revenue beat(16)2.97%
PT rev (1m)2.57%
PT rev (3m)5.8%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-4%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.88%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 9.67 | ||
| P/S | 7.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)1.95
EY9.99%
EPS(NY)2.02
Fwd EY10.34%
FCF(TTM)-1.67
FCFYN/A
OCF(TTM)-1.67
OCFYN/A
SpS2.77
BVpS11.84
TBVpS11.84
PEG (NY)N/A
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.16% | ||
| ROCE | 7.84% | ||
| ROIC | 6.19% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.28% | ||
| OM | 65.58% | ||
| PM (TTM) | 51.9% | ||
| GM | 81.71% | ||
| 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-Score2
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.24 | ||
| Cap/Depr | 17.51% | ||
| Cap/Sales | 0.01% | ||
| Interest Coverage | 4.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.39 |
F-Score2
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)-6.7%
EPS 3Y16.54%
EPS 5Y7.35%
EPS Q2Q%-1.96%
EPS Next Y-2.64%
EPS Next 2Y0.2%
EPS Next 3Y-0.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y20.66%
Revenue growth 5Y13%
Sales Q2Q%9.96%
Revenue Next Year4.92%
Revenue Next 2Y6.19%
Revenue Next 3Y9.25%
Revenue Next 5YN/A
EBIT growth 1Y-18.1%
EBIT growth 3Y29.54%
EBIT growth 5Y17.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-362.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-365.1%
OCF growth 3YN/A
OCF growth 5YN/A