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Hercules Capital

NYSE:HTGC
Snowflake Description

Undervalued with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HTGC
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Hercules Capital, Inc. is a business development company. The last earnings update was 25 days ago. More info.


Add to Portfolio Compare Print
  • Hercules Capital is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
HTGC Share Price and Events
7 Day Returns
-5.7%
NYSE:HTGC
2.6%
US Capital Markets
2.4%
US Market
1 Year Returns
4.7%
NYSE:HTGC
-12.6%
US Capital Markets
1.9%
US Market
HTGC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hercules Capital (HTGC) -5.7% -2.8% 14.7% 4.7% 10% -15.7%
US Capital Markets 2.6% -0% 10.2% -12.6% 54.7% 55.6%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • HTGC outperformed the Capital Markets industry which returned -12.6% over the past year.
  • HTGC outperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
HTGC
Industry
5yr Volatility vs Market

Value

 Is Hercules Capital undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hercules Capital to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hercules Capital.

NYSE:HTGC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $9.94 * 13.7%
$1.36
Book Value of Equity per Share Median Book Value from the past 5 years. $9.94
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HTGC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.726 (1 + (1- 21%) (79.44%))
1.122
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.122 * 5.96%)
9.41%

Discounted Cash Flow Calculation for NYSE:HTGC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Hercules Capital is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:HTGC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.7% – 9.41%) * $9.94)
$0.43
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.43 / (9.41% - 2.73%)
$6.41
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $9.94 + $6.41
$16.35
NYSE:HTGC Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.35
Current discount Discount to share price of $12.58
= -1 x ($12.58 - $16.35) / $16.35
23.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hercules Capital is available for.
Intrinsic value
23%
Share price is $12.58 vs Future cash flow value of $16.35
Current Discount Checks
For Hercules Capital to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hercules Capital's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hercules Capital's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hercules Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hercules Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HTGC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.83
NYSE:HTGC Share Price ** NYSE (2019-03-18) in USD $12.58
United States of America Capital Markets Industry PE Ratio Median Figure of 76 Publicly-Listed Capital Markets Companies 24.89x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hercules Capital.

NYSE:HTGC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HTGC Share Price ÷ EPS (both in USD)

= 12.58 ÷ 0.83

15.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hercules Capital is good value based on earnings compared to the US Capital Markets industry average.
  • Hercules Capital is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Hercules Capital's expected growth come at a high price?
Raw Data
NYSE:HTGC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
29.4%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 2.2x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:HTGC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.07x ÷ 29.4%

0.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hercules Capital is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Hercules Capital's assets?
Raw Data
NYSE:HTGC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.94
NYSE:HTGC Share Price * NYSE (2019-03-18) in USD $12.58
United States of America Capital Markets Industry PB Ratio Median Figure of 149 Publicly-Listed Capital Markets Companies 4.76x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:HTGC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HTGC Share Price ÷ Book Value per Share (both in USD)

= 12.58 ÷ 9.94

1.27x

* Primary Listing of Hercules Capital.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hercules Capital is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Hercules Capital's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Hercules Capital has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hercules Capital expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hercules Capital expected to grow at an attractive rate?
  • Hercules Capital's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Hercules Capital's earnings growth is expected to exceed the United States of America market average.
  • Hercules Capital's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HTGC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HTGC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 29.4%
NYSE:HTGC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 13.7%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.4%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HTGC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HTGC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 275 -8 144 11
2019-12-31 255 -195 134 10
NYSE:HTGC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 208 -249 76
2018-09-30 201 -210 111
2018-06-30 194 -180 109
2018-03-31 193 33 90
2017-12-31 191 -18 78
2017-09-30 188 -3 74
2017-06-30 187 11 72
2017-03-31 182 -44 48
2016-12-31 175 -138 67
2016-09-30 167 -94 67
2016-06-30 169 -16 41
2016-03-31 164 -83 34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hercules Capital's earnings are expected to grow significantly at over 20% yearly.
  • Hercules Capital's revenue is expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HTGC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Hercules Capital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HTGC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.40 1.48 1.25 9.00
2019-12-31 1.33 1.37 1.25 8.00
NYSE:HTGC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.83
2018-09-30 1.27
2018-06-30 1.29
2018-03-31 1.08
2017-12-31 0.95
2017-09-30 0.92
2017-06-30 0.91
2017-03-31 0.63
2016-12-31 0.91
2016-09-30 0.93
2016-06-30 0.57
2016-03-31 0.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hercules Capital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hercules Capital's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hercules Capital has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hercules Capital performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hercules Capital's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hercules Capital's year on year earnings growth rate has been positive over the past 5 years.
  • Hercules Capital's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hercules Capital's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.
Earnings and Revenue History
Hercules Capital's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hercules Capital Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HTGC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 207.75 75.92 52.33
2018-09-30 201.06 111.40 50.61
2018-06-30 194.33 108.90 49.66
2018-03-31 193.22 89.98 48.69
2017-12-31 190.88 78.43 47.85
2017-09-30 188.15 74.01 47.51
2017-06-30 187.39 71.59 47.30
2017-03-31 182.48 47.76 46.06
2016-12-31 175.05 67.44 45.65
2016-09-30 166.96 67.48 43.11
2016-06-30 168.99 40.72 46.58
2016-03-31 163.58 33.97 47.44
2015-12-31 157.13 41.44 46.74
2015-09-30 154.63 47.75 48.14
2015-06-30 144.51 58.70 42.63
2015-03-31 140.39 69.00 38.27
2014-12-31 143.67 69.58 36.37
2014-09-30 140.00 73.94 30.54
2014-06-30 144.00 95.87 32.20
2014-03-31 144.53 103.71 32.53
2013-12-31 139.71 98.12 31.51
2013-09-30 133.90 98.18 33.03
2013-06-30 116.78 66.03 28.70
2013-03-31 106.11 45.27 26.86
2012-12-31 97.52 45.74 25.66
2012-09-30 91.33 38.54 24.58
2012-06-30 86.11 40.09 23.91
2012-03-31 83.07 64.43 24.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hercules Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hercules Capital used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Hercules Capital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hercules Capital's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hercules Capital has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hercules Capital's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hercules Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hercules Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hercules Capital's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hercules Capital's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hercules Capital Company Filings, last reported 2 months ago.

NYSE:HTGC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 955.44 963.79 34.21
2018-09-30 1,004.18 797.40 43.21
2018-06-30 963.70 803.79 59.46
2018-03-31 828.73 772.19 118.23
2017-12-31 840.97 786.85 91.31
2017-09-30 836.28 727.66 140.57
2017-06-30 817.45 749.07 160.41
2017-03-31 807.90 761.84 148.14
2016-12-31 787.94 654.80 13.04
2016-09-30 753.59 649.19 69.01
2016-06-30 717.80 660.70 59.72
2016-03-31 718.38 601.35 13.48
2015-12-31 717.13 589.61 95.20
2015-09-30 722.79 590.33 147.30
2015-06-30 743.69 639.89 115.99
2015-03-31 763.33 614.44 171.76
2014-12-31 658.86 626.26 227.12
2014-09-30 656.20 531.53 158.63
2014-06-30 658.91 480.17 116.01
2014-03-31 653.30 497.14 224.54
2013-12-31 650.01 557.44 268.37
2013-09-30 643.38 570.09 204.99
2013-06-30 621.84 577.61 133.94
2013-03-31 615.61 587.12 206.93
2012-12-31 515.97 596.10 182.99
2012-09-30 469.12 430.91 107.09
2012-06-30 474.78 317.77 56.14
2012-03-31 485.45 271.37 48.43
  • Hercules Capital's level of debt (100.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (85.7% vs 100.9% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
X
Financial health checks
We assess Hercules Capital's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hercules Capital has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hercules Capital's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
9.86%
Current annual income from Hercules Capital dividends. Estimated to be 10.21% next year.
If you bought $2,000 of Hercules Capital shares you are expected to receive $197 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hercules Capital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Hercules Capital's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HTGC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HTGC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.30 10.00
2019-12-31 1.27 10.00
NYSE:HTGC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 1.240 9.371
2018-11-01 1.240 10.199
2018-08-02 1.240 9.425
2018-05-03 1.240 9.730
2018-02-22 1.240 10.215
2017-11-02 1.240 9.490
2017-08-03 1.240 9.851
2017-05-04 1.240 9.380
2017-02-23 1.240 8.267
2016-11-09 1.240 8.800
2016-08-04 1.240 9.155
2016-05-05 1.240 9.992
2016-02-25 1.240 10.531
2015-11-05 1.240 11.095
2015-08-06 1.240 11.165
2015-05-07 1.240 10.354
2015-03-24 1.240 9.015
2015-03-23 1.240 9.006
2015-03-02 1.240 8.757
2014-11-06 1.240 8.197
2014-08-07 1.240 8.208
2014-05-01 1.240 7.983
2014-03-03 1.240 8.609
2013-11-07 1.240 7.585
2013-08-01 1.120 7.459
2013-05-02 1.080 7.949
2013-02-28 1.000 8.092
2012-11-01 0.960 8.515
2012-08-02 0.960 8.614
2012-05-08 0.960 8.746
2012-02-29 0.920 8.377
2011-11-03 0.880 9.080
2011-08-04 0.880 9.685
2011-05-05 0.880 8.507
2011-03-03 0.880 8.201
2010-11-04 0.800 7.604
2010-08-05 0.800 8.081
2010-05-06 0.800 8.465
2010-03-12 0.800 7.436
2010-02-11 0.800 8.171
2009-10-15 1.200 11.806
2009-08-06 1.200 12.284
2009-05-07 1.200 14.073
2009-03-19 1.280 22.176

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Hercules Capital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
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Income/ dividend checks
We assess Hercules Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hercules Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hercules Capital has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hercules Capital's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Scott Bluestein
COMPENSATION $3,175,876
AGE 40
TENURE AS CEO 0.2 years
CEO Bio

Mr. Scott Bluestein serves as an Interim Chief Executive Officer at Hercules Capital, Inc. since 2019. He has been Chief Investment Officer at the firm since April 2014 until 2019. Mr. Bluestein served as the Chief Credit Officer of Hercules Technology Growth Capital, Inc. from November 17, 2010 to April 2014. He joined the Hercules Technology in 2010. He served as the Managing Director at Laurus - Valens Capital Management from 2003 to 2009, where Mr. Bluestein had responsibility for a $500 million investment portfolio, structured debt with equity investment portfolio including new investments, portfolio management and restructurings. He served as the Senior Managing Director and Senior Investment Analyst at Laurus Funds. He joined Laurus Funds in 2003, after more than three years as an Investment Banking Analyst at UBS Warburg. At UBS Warburg, he worked as part of a team of bankers dedicated to financial technology and related companies. He worked at UBS Investment Bank, where he was a member of their Financial Technology Coverage Group from 2000 to 2003. Mr. Bluestein was a Founder and Partner at Century Tree Capital Management from 2009 to 2010. He served as a Director of Hercules Capital, Inc. Mr. Bluestein has more than ten years of financial services, direct investment and credit experience. Mr. Bluestein graduated from Goizueta Business School at Emory University in 2000, with a B.B.A. in Finance and Political Science.

CEO Compensation
  • Scott's compensation has increased by more than 20% in the past year.
  • Scott's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Hercules Capital management team in years:

3.5
Average Tenure
51.5
Average Age
  • The tenure for the Hercules Capital management team is about average.
Management Team

Scott Bluestein

TITLE
Interim Chief Executive Officer
COMPENSATION
$3M
AGE
40
TENURE
0.2 yrs

Manuel Henriquez

TITLE
Founder
COMPENSATION
$8M
AGE
55

Melanie Grace

TITLE
Chief Compliance Officer
COMPENSATION
$847K
AGE
49
TENURE
3.5 yrs

David Lund

TITLE
COMPENSATION
$299K
AGE
64

Roy Liu

TITLE
Managing Director
AGE
57
TENURE
14.9 yrs

Bryan Jadot

TITLE
Senior Managing Director
AGE
54

Steve Kuo

TITLE
Senior Managing Director
AGE
43

Seth Meyer

TITLE
Chief Financial Officer
AGE
49

Mike Hara

TITLE
Managing Director of Investor Relations & Corporate Communications

Catherine Jhung

TITLE
Managing Director of Business Development
Board of Directors Tenure

Average tenure and age of the Hercules Capital board of directors in years:

1.4
Average Tenure
59
Average Age
  • The average tenure for the Hercules Capital board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bob Badavas

TITLE
Interim Chairman of the Board
COMPENSATION
$176K
AGE
65

Scott Bluestein

TITLE
Interim Chief Executive Officer
COMPENSATION
$3M
AGE
40

Manuel Henriquez

TITLE
Founder
COMPENSATION
$8M
AGE
55

Joseph Hoffman

TITLE
Director
COMPENSATION
$171K
AGE
69
TENURE
3.9 yrs

Doreen Ho

TITLE
Director
COMPENSATION
$154K
AGE
71
TENURE
2.4 yrs

Jorge Titinger

TITLE
Director
AGE
57
TENURE
1.3 yrs

Tom Fallon

TITLE
Director
COMPENSATION
$153K
AGE
56
TENURE
4.7 yrs

Brad Koenig

TITLE
Director
AGE
59
TENURE
1.4 yrs

Carol Foster

TITLE
Director
TENURE
0.2 yrs

Gayle Crowell

TITLE
Director
AGE
67
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Hercules Capital's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hercules Capital has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Has Hercules Capital Inc's (NYSE:HTGC) Performed Against The Industry?

Today I will take a look at Hercules Capital Inc's (NYSE:HTGC) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the capital markets industry performed. … Did HTGC's recent earnings growth beat the long-term trend and the industry. … HTGC's trailing twelve-month earnings (from 31 March 2018) of US$89.98m has

Simply Wall St -

Is Hercules Capital Inc's (NYSE:HTGC) CEO Pay Fair?

Manuel Henriquez took the reins as CEO of Hercules Capital Inc's (NYSE:HTGC) and grew market cap to US$1.21b recently. … CEOs leading companies of similar size and profitability … View out our latest analysis for Hercules Capital

Simply Wall St -

Is Hercules Capital Inc (NYSE:HTGC) Expensive For A Reason? A Look At The Intrinsic Value

Pricing capital market stocks such as HTGC is particularly challenging. … Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … For example, capital market businesses are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

A Holistic Look At Hercules Capital Inc (NYSE:HTGC)

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Hercules Capital Inc (NYSE:HTGC) due to its excellent fundamentals in more than one area.

Simply Wall St -

Is Hercules Capital Inc (NYSE:HTGC) Expensive For A Reason? A Look At The Intrinsic Value

NYSE:HTGC Intrinsic Value May 10th 18 Deriving HTGC's Intrinsic Value The main assumption for Excess Returns is, the value of the company is how much money it can generate from its current level of equity capital, in excess of the cost of that capital. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (12.84% – 12.43%) * $9.88 = $0.04 We use this value to calculate the terminal value of the company, which is how much we expect the company to continue to earn every year, forever. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $0.04 / (12.43% – 2.47%) = $0.41 These factors are combined to calculate the true value of HTGC's stock: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $9.88 + $0.41 = $10.28 Given HTGC's current share price of $12.63, HTGC is , at this time, priced above its true value.

Simply Wall St -

Where Hercules Capital Inc (NYSE:HTGC) Stands In Terms Of Earnings Growth Against Its Industry

When Hercules Capital Inc (NYSE:HTGC) released its most recent earnings update (31 December 2017), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Hercules Capital's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for Hercules Capital Were HTGC's earnings stronger than its past performances and the industry?

Simply Wall St -

How Does Hercules Capital Inc (NYSE:HTGC) Fare As A Dividend Stock?

View our latest analysis for Hercules Capital 5 questions to ask before buying a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … NYSE:HTGC Historical Dividend Yield Mar 22nd 18 How does Hercules Capital fare? … In terms of its peers, Hercules Capital produces a yield of 10.21%, which is high for Capital Markets stocks.Next Steps: Whilst there are few things you may like about Hercules Capital from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Should You Be Tempted To Buy Hercules Capital Inc (NYSE:HTGC) At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for HTGC Price per share = $12.17 Earnings per share = $0.957 ∴ Price-Earnings Ratio = $12.17 ÷ $0.957 = 12.7x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you inadvertently compared lower risk firms with HTGC, then investors would naturally value HTGC at a lower price since it is a riskier investment. … Similarly, if you accidentally compared higher growth firms with HTGC, investors would also value HTGC at a lower price since it is a lower growth investment.

Simply Wall St -

Why Hercules Capital Inc (NYSE:HTGC) Delivered An Inferior ROE Compared To The Industry

View our latest analysis for Hercules Capital Breaking down Return on Equity Return on Equity (ROE) weighs Hercules Capital’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:HTGC Last Perf Feb 22nd 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Is Hercules Capital Inc's (NYSE:HTGC) Growth Strong Enough To Justify Its January Share Price?

Hercules Capital Inc (NYSE:HTGC) is a stock well positioned for future growth, but many investors are wondering whether its last closing price of $13.07 is based on unrealistic expectations. … Hercules Capital is available at a price-to-earnings ratio of 14.27x, showing us it is undervalued relative to the current US market average of 19.82x , and undervalued based on its latest annual earnings update compared to the capital markets average of 16.55x. … But, to properly examine the value of a high-growth stock such as Hercules Capital, we must reflect its earnings growth into the valuation.

Simply Wall St -

Company Info

Description

Hercules Capital, Inc. is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; domestic and international corporate expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans or leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, seed, startups, early stage, emerging growth, mid venture, and late venture financing. The firm invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The firm generally seeks to invest in companies that have been operating for at least six to 12 months prior to the date of their investment. It prefers to invest in technology, energy technology, sustainable and renewable technology, and life sciences. Within technology the firm focuses on advanced specialty materials and chemicals; communication and networking, consumer and business products; consumer products and services, digital media and consumer internet; electronics and computer hardware; enterprise software and services; gaming; healthcare services; information services; business services; media, content and information; mobile; resource management; security software; semiconductors; semiconductors and hardware; and software sector. Within energy technology, it invests in agriculture; clean technology; energy and renewable technology, fuels and power technology; geothermal; smart grid and energy efficiency and monitoring technologies; solar; and wind. Within life sciences, the firm invests in biopharmaceuticals; biotechnology tools; diagnostics; drug discovery, development and delivery; medical devices and equipment; surgical devices; therapeutics; pharma services; and specialty pharmaceuticals. It also invests in educational services. The firm invests primarily in United States based companies and considers investment in the West Coast, Mid-Atlantic regions, Southeast and Midwest; particularly in the areas of software, biotech and information services. It invests generally between $1 million to $40 million in companies focused primarily on business services, communications, electronics, hardware, and healthcare services. The firm invests primarily in private companies but also have investments in public companies. For equity investments, the firm seeks to represent a controlling interest in its portfolio companies which may exceed 25% of the voting securities of such companies. The firm seeks to invest a limited portion of its assets in equipment-based loans to early-stage prospective portfolio companies. These loans are generally for amounts up to $3 million but may be up to $15 million for certain energy technology venture investments. The firm allows certain debt investments have the right to convert a portion of the debt investment into equity. It also co-invests with other private equity firms. The firm seeks to exit its investments through initial public offering, a private sale of equity interest to a third party, a merger or an acquisition of the company or a purchase of the equity position by the company or one of its stockholders. The firm has structured debt with warrants which typically have maturities of between two and seven years with an average of three years; senior debt with an investment horizon of less than three years; equipment loans with an investment horizon ranging from three to four years; and equity related securities with an investment horizon ranging from three to seven years. The firm prefers to invest through its balance sheet capital. The firm formerly known as Hercules Technology Growth Capital, Inc. Hercules Capital, Inc. was founded in December 2003 and is based in Palo Alto, California with additional offices in Hartford, Connecticut; Boston, Massachusetts; Elmhurst, Illinois; Santa Monica, California; McLean, Virginia; New York, New York; Radnor, Pennsylvania; and Washington, District of Columbia.

Details
Name: Hercules Capital, Inc.
HTGC
Exchange: NYSE
Founded: 2003
$1,213,286,906
96,445,700
Website: http://www.htgc.com
Address: Hercules Capital, Inc.
400 Hamilton Avenue,
Suite 310,
Palo Alto,
California, 94301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HTGC Common Stock New York Stock Exchange US USD 09. Jun 2005
DB 19H Common Stock Deutsche Boerse AG DE EUR 09. Jun 2005
LSE 0J4M Common Stock London Stock Exchange GB USD 09. Jun 2005
Number of employees
Current staff
Staff numbers
69
Hercules Capital employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 23:55
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.