NYSE:HTGC

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Executive Summary

Hercules Capital, Inc. is a business development company. More Details


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Hercules Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HTGC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HTGC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

HTGC

-1.2%

US Capital Markets

2.6%

US Market


1 Year Return

5.5%

HTGC

17.5%

US Capital Markets

26.0%

US Market

Return vs Industry: HTGC underperformed the US Capital Markets industry which returned 17.5% over the past year.

Return vs Market: HTGC underperformed the US Market which returned 26% over the past year.


Shareholder returns

HTGCIndustryMarket
7 Day1.6%-1.2%2.6%
30 Day7.2%4.6%5.1%
90 Day33.6%24.1%17.1%
1 Year18.1%5.5%20.4%17.5%28.9%26.0%
3 Year58.7%16.3%27.7%17.9%46.3%36.6%
5 Year129.7%39.1%138.6%108.9%126.9%101.6%

Long-Term Price Volatility Vs. Market

How volatile is Hercules Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hercules Capital undervalued compared to its fair value and its price relative to the market?

17.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTGC ($15.15) is trading below our estimate of fair value ($18.33)

Significantly Below Fair Value: HTGC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HTGC is good value based on its PE Ratio (13.9x) compared to the US Capital Markets industry average (27.1x).

PE vs Market: HTGC is good value based on its PE Ratio (13.9x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: HTGC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HTGC is good value based on its PB Ratio (1.5x) compared to the US Capital Markets industry average (4.9x).


Next Steps

Future Growth

How is Hercules Capital forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTGC's forecast earnings growth (21.4% per year) is above the savings rate (2%).

Earnings vs Market: HTGC's earnings (21.4% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HTGC's revenue (5.7% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: HTGC's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HTGC's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Hercules Capital performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTGC has a large one-off loss of $34.4M impacting its September 30 2020 financial results.

Growing Profit Margin: HTGC's current net profit margins (42.4%) are lower than last year (44.1%).


Past Earnings Growth Analysis

Earnings Trend: HTGC's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: HTGC's earnings growth over the past year (6.8%) is below its 5-year average (21.5% per year).

Earnings vs Industry: HTGC earnings growth over the past year (6.8%) exceeded the Capital Markets industry 4.9%.


Return on Equity

High ROE: HTGC's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Hercules Capital's financial position?


Financial Position Analysis

Short Term Liabilities: HTGC's short term assets ($67.6M) exceed its short term liabilities ($29.4M).

Long Term Liabilities: HTGC's short term assets ($67.6M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: HTGC's debt to equity ratio (110.2%) is considered high.

Reducing Debt: HTGC's debt to equity ratio has increased from 81.7% to 110.2% over the past 5 years.

Debt Coverage: HTGC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HTGC's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

9.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HTGC's dividend (9.11%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: HTGC's dividend (9.11%) is in the top 25% of dividend payers in the US market (3.85%)


Stability and Growth of Payments

Stable Dividend: HTGC's dividends per share have been stable in the past 10 years.

Growing Dividend: HTGC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.5%), HTGC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HTGC's dividends in 3 years are not forecast to be well covered by earnings (90.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Scott Bluestein (42 yo)

1.83yrs

Tenure

US$7,584,201

Compensation

Mr. Scott Bluestein serves as Chief Executive Officer, President and Director at Hercules Capital, Inc. since July 18, 2019. Mr. Bluestein served as an Interim Chief Executive Officer at Hercules Capital, ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD7.58M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Bluestein
CEO, Chief Investment Officer1.83yrsUS$7.58m0.78%
$ 13.4m
Seth Meyer
CFO & Chief Accounting Officer1.83yrsUS$1.74m0.15%
$ 2.7m
Melanie Grace
Chief Compliance Officer5.33yrsUS$773.01k0.038%
$ 653.3k
Roy Liu
Managing Director16.75yrsno datano data
Steve Kuo
Senior MD & Group Head of Technology2yrsno datano data
Michael Hara
Managing Director of Investor Relations & Corporate Communicationsno datano datano data
Catherine Jhung
Managing Director of Business Developmentno datano datano data
Stephanie Lau-Chen
Vice President of Human Resources1yrno datano data
R. Jadot
Senior MD & Group Head of Life Sciences1.67yrsno datano data
Michael Bowden
Managing Director of Portfolio Management2yrsno datano data
Janice Bourque
Managing Director10.75yrsno datano data
April Young
Managing Director9.25yrsno datano data

2.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: HTGC's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Bluestein
CEO, Chief Investment Officer1.83yrsUS$7.58m0.78%
$ 13.4m
Gayle Crowell
Independent Director1.92yrsUS$173.85k0.012%
$ 206.1k
Robert Badavas
Chairman of the Board & Lead Independent Director1.83yrsUS$175.00k0.11%
$ 1.9m
Carol Foster
Independent Director2yrsUS$168.29k0.015%
$ 250.8k
Thomas Fallon
Independent Director6.5yrsUS$150.00k0.044%
$ 755.1k
Doreen Ho
Independent Director4.25yrsUS$228.17k0.019%
$ 326.8k
Joseph Hoffman
Independent Director5.75yrsUS$239.23k0.033%
$ 562.4k
Bradford Koenig
Independent Director3.25yrsUS$150.00k0.018%
$ 302.5k

2.6yrs

Average Tenure

64yo

Average Age

Experienced Board: HTGC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HTGC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9%.


Top Shareholders

Company Information

Hercules Capital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hercules Capital, Inc.
  • Ticker: HTGC
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.725b
  • Shares outstanding: 113.85m
  • Website: https://www.htgc.com

Number of Employees


Location

  • Hercules Capital, Inc.
  • 400 Hamilton Avenue
  • Suite 310
  • Palo Alto
  • California
  • 94301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTGCNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2005
19HDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2005
0J4MLSE (London Stock Exchange)YesCommon StockGBUSDJun 2005

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/26 01:19
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.