Hercules Capital, Inc.
Hercules Capital, Inc. Fundamental Analysis
Hercules Capital, Inc. (HTGC) shows moderate financial fundamentals with a PE ratio of 7.93, profit margin of 62.10%, and ROE of 15.88%. The company generates $0.6B in annual revenue with weak year-over-year growth of -9.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HTGC's fundamental strength across five key dimensions:
Efficiency Score
WeakHTGC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHTGC trades at attractive valuation levels.
Growth Score
WeakHTGC faces weak or negative growth trends.
Financial Health Score
ModerateHTGC shows balanced financial health with some risks.
Profitability Score
ModerateHTGC maintains healthy but balanced margins.
Key Financial Metrics
Is HTGC Expensive or Cheap?
P/E Ratio
HTGC trades at 7.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HTGC's PEG of 1.07 indicates fair valuation.
Price to Book
The market values Hercules Capital, Inc. at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.34 times EBITDA. This is generally considered low.
How Well Does HTGC Make Money?
Net Profit Margin
For every $100 in sales, Hercules Capital, Inc. keeps $62.10 as profit after all expenses.
Operating Margin
Core operations generate 66.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.88 in profit for every $100 of shareholder equity.
ROA
Hercules Capital, Inc. generates $7.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hercules Capital, Inc. generates limited operating cash flow of $-348.77M, signaling weaker underlying cash strength.
Free Cash Flow
Hercules Capital, Inc. generates weak or negative free cash flow of $-348.83M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.90 in free cash annually.
FCF Yield
HTGC converts -12.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.003
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HTGC Stacks Against Its Sector Peers
| Metric | HTGC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.93 | 18.66 | Better (Cheaper) |
| ROE | 15.88% | 805.00% | Weak |
| Net Margin | 62.10% | -451.00% (disorted) | Strong |
| Debt/Equity | 1.04 | 1.00 | Neutral |
| Current Ratio | 1.44 | 661.80 | Neutral |
| ROA | 7.41% | -24401.00% (disorted) | Weak |
HTGC outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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
7.19%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-5.92%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
69.19%
Industry Style: Value, Dividend, Cyclical
High Growth