Hercules Capital Inc Fundamental Analysis (NYSE: HCXY)
Hercules Capital Inc Fundamental Analysis (NYSE: HCXY)
Hercules Capital Inc (NYSE: HCXY) shows moderate financial fundamentals with a PE ratio of 8.00, profit margin of 66.09%, and ROE of 17.21%. The company generates $0.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HCXY's fundamental strength across five key dimensions:
Efficiency Score
WeakHCXY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCXY trades at attractive valuation levels.
Growth Score
ModerateHCXY shows steady but slowing expansion.
Financial Health Score
WeakHCXY carries high financial risk with limited liquidity.
Profitability Score
ExcellentHCXY achieves industry-leading margins.
Key Financial Metrics
Is HCXY Expensive or Cheap?
P/E Ratio
HCXY trades at 8.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HCXY's PEG of 0.21 indicates potential undervaluation.
Price to Book
The market values Hercules Capital Inc at 1.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.89 times EBITDA. This is generally considered low.
How Well Does HCXY Make Money?
Net Profit Margin
For every $100 in sales, Hercules Capital Inc keeps $66.09 as profit after all expenses.
Operating Margin
Core operations generate 75.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.21 in profit for every $100 of shareholder equity.
ROA
Hercules Capital Inc generates $8.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hercules Capital Inc produces operating cash flow of $69.21M, showing steady but balanced cash generation.
Free Cash Flow
Hercules Capital Inc generates strong free cash flow of $69.15M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.49 in free cash annually.
FCF Yield
HCXY converts 2.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How HCXY Stacks Against Its Sector Peers
| Metric | HCXY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.00 | 21.17 | Better (Cheaper) |
| ROE | 17.21% | 668.00% | Weak |
| Net Margin | 66.09% | 876.00% | Weak |
| Debt/Equity | 1.03 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.13 | 905.28 | Weak Liquidity |
| ROA | 8.17% | 4787782.00% | Weak |
HCXY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hercules Capital Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical