Hercules Capital, Inc. (HTGC) 10-Year Financial Performance & Capital Metrics

HTGC • • Banking & Credit

Financial ServicesAsset ManagementBusiness Development Companies (BDCs)Middle Market Lenders

AboutHercules 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, 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. The firm prefers to invest between $10 million to $250 million in equity per transactions. 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 Connecticut; Boston, Massachusetts; San Diego, California; Westport, Connecticut; Elmhurst, Illinois; Santa Monica, California; McLean, Virginia; New York, New York; Radnor, Pennsylvania; and Washington, District of Columbia and London, United Kingdom.Show more

Net Interest Income $390M +6.3%
Total Revenue $431M -12.8%
Net Income $263M -22.1%
Return on Equity 13.87% -34.2%
Net Interest Margin 10.18% -5.2%
Efficiency Ratio 21.07% +16.9%
ROA 7.26% -30.7%
Equity / Assets 51.93% -1.6%
Book Value per Share 12.31 -1.1%
Tangible BV/Share 12.31 -1.1%
Debt/Equity 0.90 +3.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong NIM of 10.2%
✓Efficient operations: 21.1% efficiency ratio
✓Well capitalized: 51.9% equity/assets

✗Weaknesses

✗Weak Piotroski F-Score: 2/9
✗Dividend payout exceeds 100% of earnings
✗Shares diluted 11.6% in last year

Price & Volume

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Growth Metrics

Revenue CAGR

10Y11.65%

5Y7.64%

3Y11.65%

TTM-

Profit (Net Income) CAGR

10Y13.96%

5Y8.66%

3Y14.72%

TTM-3.53%

EPS CAGR

10Y3.88%

5Y-1.2%

3Y2.62%

TTM-14.85%

ROCE

10Y Avg6.47%

5Y Avg7.72%

3Y Avg7.42%

Latest7.47%

Peer Comparison

Middle Market Lenders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
GSBDGoldman Sachs BDC, Inc.	1.08B	9.43	17.15	-57.7%	32.67%	9.15%	18.68%	1.23
CSWCCapital Southwest Corporation	1.36B	23.72	16.14	7.67%	43.07%	9.13%		1.08
HCXYHercules Capital, Inc.	2.36B	25.18	15.64	-9.71%	62.54%	14.13%		0.90
TRINITrinity Capital Inc. 7.875% Notes Due 2029	1.91B	25.41	12.10	29.68%	50.98%	15.22%	4.92%	1.08
HTGCHercules Capital, Inc.	3.45B	18.97	11.78	-12.79%	61.03%	14.17%		0.90
TSLXSixth Street Specialty Lending, Inc.	2.12B	22.40	11.03	-2.72%	51.86%	11.83%	8.85%	1.18
MAINMain Street Capital Corporation	5.75B	64.20	10.97	18.32%	70.11%	18.28%		0.76
GBDCGolub Capital BDC, Inc.	3.68B	13.95	9.82	80.52%	46.2%	9.4%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	109.43M	126.71M	134.34M	151.2M	192.92M	203.77M	198.91M	252.51M	366.81M	390.04M
NII Growth %	0.11%	0.16%	0.06%	0.13%	0.28%	0.06%	-0.02%	0.27%	0.45%	0.06%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	140.27M	158.73M	172.2M	190.64M	247.51M	263.38M	253.36M	307.26M	434.43M	467.19M
Interest Expense	30.83M	32.02M	37.86M	39.44M	54.6M	59.6M	54.45M	54.75M	67.62M	77.15M
Loan Loss Provision	0	0	0	0	0	0	0	0	0	0
Non-Interest Income+	-13.72M	-15.32M	1.24M	-15.12M	50.69M	94M	56.22M	-67.87M	59.69M	-36.3M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	126.55M	143.41M	173.43M	175.52M	298.2M	357.38M	309.58M	239.39M	494.12M	430.9M
Revenue Growth %	-0.12%	0.13%	0.21%	0.01%	0.7%	0.2%	-0.13%	-0.23%	1.06%	-0.13%
Non-Interest Expense	52.8M	42.69M	56.58M	59.59M	70.01M	70.51M	80.98M	82.56M	89.01M	90.78M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	42.92M	68.7M	79M	76.5M	173.6M	227.26M	174.16M	102.08M	337.48M	262.97M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.4%	0.6%	0.15%	-0.03%	1.27%	0.31%	-0.23%	-0.41%	2.31%	-0.22%
Pretax Income+	42.92M	68.7M	79M	76.5M	173.6M	227.26M	174.16M	102.08M	337.48M	262.97M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	0	0	49.05M	37.86K	0	0	0	0	0	0
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	42.92M	68.7M	79M	76.5M	173.6M	227.26M	174.16M	102.08M	337.48M	262.97M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.4%	0.6%	0.15%	-0.03%	1.27%	0.31%	-0.23%	-0.41%	2.31%	-0.22%
Net Income (Continuing)	42.92M	68.7M	79M	76.5M	173.6M	227.26M	174.16M	102.08M	337.48M	262.97M
EPS (Diluted)+	0.59	0.91	0.95	0.83	1.71	2.01	1.49	0.79	2.31	1.61
EPS Growth %	-0.46%	0.54%	0.04%	-0.13%	1.06%	0.18%	-0.26%	-0.47%	1.92%	-0.3%
EPS (Basic)	0.60	0.91	0.95	0.83	1.71	2.02	1.50	0.80	2.32	1.61
Diluted Shares Outstanding	69.66M	73.78M	82.64M	91.06M	101.57M	112.27M	115.95M	126.66M	144.83M	161.6M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	95.2M	13.04M	91.31M	34.21M	64.39M	198.28M	133.12M	15.8M	98.9M	113.12M
Short Term Investments	0	0	0	0	0	0	0	0	0	0
Total Investments+	1.2B	1.42B	1.54B	1.88B	2.31B	2.35B	2.43B	2.96B	3.25B	3.66B
Investments Growth %	0.18%	0.19%	0.08%	0.22%	0.23%	0.02%	0.03%	0.22%	0.1%	0.13%
Long-Term Investments	1.2B	1.42B	1.54B	1.88B	2.31B	2.35B	2.43B	2.96B	3.25B	3.66B
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
PP&E (Net)	0	0	0	0	11.66M	9.28M	6.76M	4.99M	4.79M	16.78M
Other Assets	18.91M	15.6M	8.93M	13.65M	580K	3.88M	4.54M	1.48M	0	-3.66B
Total Current Assets	104.44M	24.66M	103.57M	51.17M	135.2M	256.76M	154.19M	58.43M	131.64M	75.26M
Total Non-Current Assets	1.22B	1.44B	1.55B	1.89B	2.33B	2.37B	2.45B	2.97B	3.25B	16.78M
Total Assets+	1.32B	1.46B	1.65B	1.95B	2.46B	2.62B	2.6B	3.03B	3.42B	3.83B
Asset Growth %	0.02%	0.11%	0.13%	0.18%	0.27%	0.07%	-0.01%	0.16%	0.13%	0.12%
Return on Assets (ROA)	0.03%	0.05%	0.05%	0.04%	0.08%	0.09%	0.07%	0.04%	0.1%	0.07%
Accounts Payable	17.24M	21.46M	26.9M	25.96M	30.31M	36.34M	42.08M	46.34M	50.79M	54.86M
Total Debt+	589.61M	654.8M	786.85M	963.79M	1.3B	1.3B	1.24B	1.58B	1.56B	1.79B
Net Debt	494.41M	641.75M	695.54M	929.57M	1.23B	1.1B	1.11B	1.56B	1.46B	1.67B
Long-Term Debt	539.61M	649.78M	786.85M	910.83M	1.29B	1.29B	857M	1.57B	1.45B	1.77B
Short-Term Debt	50M	5.02M	0	52.96M	0	0	379.3M	0	104.83M	3.09M
Other Liabilities	0	0	0	0	0	0	0	0	0	0
Total Current Liabilities	67.24M	26.48M	26.9M	78.92M	30.31M	36.34M	427.08M	47.54M	157.51M	54.86M
Total Non-Current Liabilities	539.61M	649.78M	786.85M	910.83M	1.3B	1.3B	864.38M	1.58B	1.45B	1.79B
Total Liabilities	606.85M	676.26M	813.75M	989.75M	1.33B	1.33B	1.29B	1.63B	1.61B	1.84B
Total Equity+	717.13M	787.94M	840.97M	955.44M	1.13B	1.29B	1.31B	1.4B	1.8B	1.99B
Equity Growth %	0.09%	0.1%	0.07%	0.14%	0.19%	0.14%	0.01%	0.07%	0.29%	0.1%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.06%	0.09%	0.1%	0.09%	0.17%	0.19%	0.13%	0.08%	0.21%	0.14%
Book Value per Share	10.29	10.68	10.18	10.49	11.16	11.51	11.28	11.06	12.45	12.31
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	73K	80K	85K	96K	108K	115K	117K	134K	158K	171K
Additional Paid-in Capital	752.24M	839.66M	908.5M	1.05B	1.15B	1.16B	1.09B	1.34B	1.66B	1.9B
Retained Earnings	17.63M	22.92M	-67.62M	-92.86M	-12.16M	133.39M	216.52M	59.91M	140.01M	88.92M
Accumulated OCI	-24.82M	-89.03M	-100.13M	0	0	0	0	0	0	0
Treasury Stock	0	0	0	-4.06M	0	0	0	0	0	0
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-114.36M	-138.38M	-18.4M	-248.97M	-240.66M	207.8M	128.62M	-424.8M	68.28M	-118.09M
Operating CF Growth %	-3.31%	-0.21%	0.87%	-12.53%	0.03%	1.86%	-0.38%	-4.3%	1.16%	-2.73%
Net Income	42.92M	68.7M	79M	76.5M	173.6M	227.26M	174.16M	102.08M	337.48M	31.49M
Depreciation & Amortization	193K	202K	201K	199K	262K	415K	7.36M	5.88M	190K	466K
Deferred Taxes	-164.09M	-192.7M	-89.7M	-326.49M	0	-8.47M	0	0	0	0
Other Non-Cash Items	-12.33M	-26.52M	-18.13M	-5.1M	-426.58M	-25.62M	-78.22M	-529.91M	-252.23M	-165.46M
Working Capital Changes	9.49M	4.81M	2.98M	-5.34M	3.42M	5.74M	13.39M	-16.23M	-17.17M	15.42M
Cash from Investing+	3.28M	617K	4.36M	-475K	-595K	-137K	-106K	-114K	-887K	-705K
Purchase of Investments	-712.7M	-680.97M	-764.79M	-960.84M	0	-761.26M	0	0	0	-1.54B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	0	1000K	0	0	0	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	694.81M	661.97M	740.91M	475K	0	137K	0	0	0	0
Other Investing	3.47M	869K	4.64M	940.96M	0	728.48M	0	0	0	537.33M
Cash from Financing+	-20.84M	55.62M	92.3M	200.31M	310.4M	-85.04M	-229.87M	314.52M	22.75M	119.2M
Dividends Paid	-84.99M	-90.53M	-100.89M	-112.72M	-132.05M	-152.42M	-175.5M	-245.12M	-273.68M	-303.48M
Share Repurchases	-9.21M	-7.32M	-2.69M	-4.96M	-5.12M	-1.84M	-2.82M	-4.53M	-12.7M	-3.43M
Stock Issued	100.09M	92.83M	66.94M	144.39M	133.99M	77.18M	0	0	344.35M	220.88M
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	-1000K	1000K	1000K	1000K	1000K	-1000K	-1000K	1000K	-1000K	1000K
Other Financing	-620K	86.28M	60.67M	140.38M	-8.88M	72.15M	-1.49M	221.14M	333.13M	-8.4M
Net Change in Cash+	-131.92M	-82.15M	78.27M	-49.14M	69.14M	122.63M	-101.36M	-110.39M	90.14M	408K
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	227.12M	95.2M	13.04M	95M	45.86M	115M	237.62M	136.26M	25.88M	116.01M
Cash at End	95.2M	13.04M	91.31M	45.86M	115M	237.62M	136.26M	25.88M	116.01M	116.42M
Interest Paid	30.53M	31.01M	33.58M	38.96M	51.82M	0	51.47M	52.08M	0	0
Income Taxes Paid	973K	184K	1.08M	713K	1.43M	0	0	0	0	0
Free Cash Flow+	-114.55M	-138.64M	-18.67M	-249.44M	-241.26M	207.66M	128.51M	-424.91M	67.39M	-118.79M
FCF Growth %	-3.29%	-0.21%	0.87%	-12.36%	0.03%	1.86%	-0.38%	-4.31%	1.16%	-2.76%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	6.24%	9.13%	9.7%	8.52%	16.62%	18.75%	13.4%	7.53%	21.07%	13.87%
Return on Assets (ROA)	3.27%	4.93%	5.07%	4.25%	7.88%	8.94%	6.67%	3.63%	10.47%	7.26%
Net Interest Margin	8.27%	8.65%	8.12%	7.77%	7.84%	7.77%	7.65%	8.34%	10.73%	10.18%
Efficiency Ratio	41.72%	29.77%	32.62%	33.95%	23.48%	19.73%	26.16%	34.49%	18.01%	21.07%
Equity / Assets	54.16%	53.81%	50.82%	49.12%	46.02%	49.23%	50.33%	46.27%	52.76%	51.93%
Book Value / Share	10.29	10.68	10.18	10.49	11.16	11.51	11.28	11.06	12.45	12.31
NII Growth	11.01%	15.79%	6.02%	12.55%	27.59%	5.63%	-2.39%	26.94%	45.26%	6.34%
Dividend Payout	198.04%	131.78%	127.71%	147.36%	76.07%	67.07%	83.48%	165.87%	81.09%	115.4%

Frequently Asked Questions

Valuation & Price

Hercules Capital, Inc. (HTGC) has a price-to-earnings (P/E) ratio of 11.8x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Hercules Capital, Inc. (HTGC) saw revenue decline by 12.8% over the past year.

Yes, Hercules Capital, Inc. (HTGC) is profitable, generating $310.3M in net income for fiscal year 2024 (61.0% net margin).

Dividend & Returns

Yes, Hercules Capital, Inc. (HTGC) pays a dividend with a yield of 9.90%. This makes it attractive for income-focused investors.

Hercules Capital, Inc. (HTGC) has a return on equity (ROE) of 13.9%. This is reasonable for most industries.

Industry Metrics

Hercules Capital, Inc. (HTGC) has a net interest margin (NIM) of 10.2%. This indicates healthy earnings from lending activities.

Hercules Capital, Inc. (HTGC) has an efficiency ratio of 21.1%. This is excellent, indicating strong cost control.

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