(HTGC) Hercules Capital - NYSE
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 2.840m USD | Total Return: -4.6% in 12m
Avg Turnover: 21.4M
EPS Trend: -34.4%
Qual. Beats: 0
Rev. Trend: 35.3%
Qual. Beats: -1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Hercules Capital, Inc. (HTGC) is a publicly traded business development company (BDC) that provides structured debt and equity financing to venture capital-backed companies across various development stages, from mid-venture to expansion, as well as to select publicly listed firms and special opportunity situations. Its financing offerings include growth capital, management buy-outs, spin-outs, acquisition financing, convertible and mezzanine loans, bridge financing for IPOs and M&A, accounts receivable facilities, equipment loans and leases, working capital revolving lines of credit, and dividend recapitalizations.
The firm invests primarily in structured debt with warrants, with a smaller allocation to senior debt and equity, and generally targets companies that have been operating for at least six to twelve months prior to investment. Sectors of focus include technology, SaaS, energy technology, and sustainable industries.
As a BDC, Hercules operates under the Investment Company Act of 1940, which requires it to distribute substantially all of its taxable income to shareholders in order to qualify for pass-through tax treatment.
- SOFR rate changes lift net interest spread on floating-rate loans
- Venture debt credit quality weakens as tech portfolio non-accruals rise
- Strong origination pipeline expands investment portfolio and net investment income
| Net Income: 331.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.07 > 0.02 and ΔFCF/TA -4.81 > 1.0 |
| NWC/Revenue: -0.51% < 20% (prev -44.00%; Δ 43.48% < -1%) |
| CFO/TA -0.07 > 3% & CFO -351.7m > Net Income 331.9m |
| Net Debt (2.52b) to EBITDA (357.6m): 7.05 < 3 |
| Current Ratio: 0.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (196.8m) vs 12m ago 12.22% < -2% |
| Gross Margin: 85.78% > 18% (prev 79.68%; Δ 6.10% > 0.5%) |
| Asset Turnover: 12.43% > 50% (prev 9.67%; Δ 2.76% > 0%) |
| Interest Coverage Ratio: 3.55 > 6 (EBIT TTM 357.3m / Interest Expense TTM 100.6m) |
| A: -0.00 (Total Current Assets 42.4m - Total Current Liabilities 45.2m) / Total Assets 4.83b |
| B: 0.01 (Retained Earnings 56.9m / Total Assets 4.83b) |
| C: 0.08 (EBIT TTM 357.3m / Avg Total Assets 4.43b) |
| D: 0.86 (Book Value of Equity 2.23b / Total Liabilities 2.60b) |
| Altman-Z'' = 1.48 = BB |
| DSRI: 0.86 (Receivables 40.4m/33.1m, Revenue 550.6m/389.9m) |
| GMI: 0.93 (GM 79.68% / 85.78%) |
| AQI: 1.01 (AQ_t 0.99 / AQ_t-1 0.97) |
| SGI: 1.41 (Revenue 550.6m / 389.9m) |
| TATA: 0.14 (NI 331.9m - CFO -351.7m) / TA 4.83b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of June 26, 2026, the stock is trading at USD 15.24 with a total of 1,307,494 shares traded. Over the past week, the price has changed by -1.10%, over one month by -2.99%, over three months by +10.76% and over the past year by -4.62%.
Current recommended Stop Loss: 14.70 (which is 3.5% or 1.7 ATR below the current price).
Hercules Capital has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy HTGC.
- StrongBuy: 3
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 19.4 | 27% |
P/E Trailing = 8.4804
P/E Forward = 7.9051
P/S = 5.1224
P/B = 1.2755
P/EG = 0.5247
Revenue TTM = 550.6m USD
EBIT TTM = 357.3m USD
EBITDA TTM = 357.6m USD
Long Term Debt = 1.88b USD (estimated: total debt 2.55b - short term 677.6m)
Short Term Debt = 677.6m USD (from shortTermDebt, last quarter)
Debt = 2.56b USD (from shortLongTermDebtTotal, last quarter) + Leases 10.2m
Net Debt = 2.52b USD (calculated: Debt 2.56b - CCE 42.4m)
Enterprise Value = 5.36b USD (2.84b + Debt 2.56b - CCE 42.4m)
Interest Coverage Ratio = 3.55 (Ebit TTM 357.3m / Interest Expense TTM 100.6m)
EV/FCF = -15.25x (Enterprise Value 5.36b / FCF TTM -351.7m)
FCF Yield = -6.56% (FCF TTM -351.7m / Enterprise Value 5.36b)
FCF Margin = -63.88% (FCF TTM -351.7m / Revenue TTM 550.6m)
Net Margin = 60.28% (Net Income TTM 331.9m / Revenue TTM 550.6m)
Gross Margin = 85.78% ((Revenue TTM 550.6m - Cost of Revenue TTM 78.3m) / Revenue TTM)
Gross Margin QoQ = 70.66% (prev none%)
Tobins Q-Ratio = 1.11 (Enterprise Value 5.36b / Total Assets 4.83b)
Interest Expense / Debt = 3.92% (Interest Expense 100.6m / Debt 2.56b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 282.2m (EBIT 357.3m * (1 - 21.00%))
Current Ratio = 0.94 (Total Current Assets 42.4m / Total Current Liabilities 45.2m)
Debt / Equity = 1.15 (Debt 2.56b / totalStockholderEquity, last quarter 2.23b)
Debt / EBITDA = 7.05 (Net Debt 2.52b / EBITDA 357.6m)
Debt / FCF = -7.17 (negative FCF - burning cash) (Net Debt 2.52b / FCF TTM -351.7m)
Total Stockholder Equity = 2.20b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.49% (Net Income 331.9m / Total Assets 4.83b)
RoE = 15.11% (Net Income TTM 331.9m / Total Stockholder Equity 2.20b)
RoCE = 8.77% (EBIT 357.3m / Capital Employed (Equity 2.20b + L.T.Debt 1.88b))
RoIC = 5.20% (NOPAT 282.2m / Invested Capital 5.43b)
WACC = 6.36% (E(2.84b)/V(5.40b) * Re(9.30%) + D(2.56b)/V(5.40b) * Rd(3.92%) * (1-Tc(0.21)))
Discount Rate = 9.30% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 10.33%
[DCF] Fair Price = unknown (Cash Flow -351.7m)
EPS Correlation: -34.42 | EPS CAGR: -1.51% | SUE: 0.66 | # QB: 0
Revenue Correlation: 35.30 | Revenue CAGR: 4.08% | SUE: -1.45 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.49 | Chg30d=-0.37% | Revisions=+0% | Analysts=9
EPS next Quarter (2026-09-30): EPS=0.49 | Chg30d=-0.59% | Revisions=-27% | Analysts=9
EPS current Year (2026-12-31): EPS=1.94 | Chg30d=-0.37% | Revisions=-17% | GrowthEPS=+1.4% | GrowthRev=+10.1%
EPS next Year (2027-12-31): EPS=1.99 | Chg30d=+0.68% | Revisions=-17% | GrowthEPS=+2.7% | GrowthRev=+7.9%
[Analyst] Revisions Ratio: -27%