Latest Ratios: P/E Ratio 13.5x · EV/EBITDA 15.8x · ROE 16.2%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.5B | $5.0B | $4.1B | $3.7B | $3.1B | $3.1B | $3.0B | $2.7B | $2.1B | — | — |
| Enterprise Value | $5.8B | $7.2B | $5.7B | $5.1B | $4.7B | $4.2B | $4.1B | $3.9B | $3.1B | — | — |
| P/E Ratio → | 13.54 | 13.78 | 15.63 | 10.93 | 31.13 | 17.90 | 13.33 | 15.41 | 28.13 | — | — |
| P/S Ratio | 6.45 | 9.08 | 9.44 | 7.40 | 13.01 | 9.99 | 8.42 | 8.97 | 12.11 | — | — |
| P/B Ratio | 2.20 | 2.24 | 2.04 | 2.03 | 2.22 | 2.36 | 2.33 | 2.36 | 2.23 | — | — |
| P/FCF | — | — | — | 54.26 | — | 24.06 | 14.49 | — | — | — | — |
| P/OCF | — | — | — | 53.56 | — | 24.04 | 14.48 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 13.18 | 13.32 | 10.36 | 19.54 | 13.58 | 11.49 | 13.11 | 17.41 | — | — |
| EV / EBITDA | 15.80 | 19.73 | 21.79 | 15.16 | 45.74 | 24.09 | 18.04 | 22.49 | 39.84 | — | — |
| EV / EBIT | 15.82 | 19.75 | 21.83 | 15.17 | 45.83 | 24.13 | 18.07 | 22.53 | 39.95 | — | — |
| EV / FCF | — | — | — | 75.95 | — | 32.71 | 19.77 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 87.2% | 87.2% | 82.1% | 86.3% | 77.1% | 82.4% | 83.3% | 81.7% | 77.5% | 78.2% | 77.7% |
| Operating Margin | 66.7% | 66.7% | 61.0% | 68.3% | 42.6% | 56.3% | 63.6% | 58.2% | 43.6% | 45.5% | 47.9% |
| Net Profit Margin | 62.1% | 62.1% | 61.0% | 68.3% | 42.6% | 56.3% | 63.6% | 58.2% | 43.6% | 45.5% | 47.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.2% | 16.2% | 13.9% | 21.1% | 7.5% | 13.4% | 18.7% | 16.6% | 8.5% | 9.7% | 9.1% |
| ROA | 8.1% | 8.1% | 7.3% | 10.5% | 3.6% | 6.7% | 8.9% | 7.9% | 4.2% | 5.1% | 4.9% |
| ROIC | 6.6% | 6.6% | 5.5% | 8.0% | 2.8% | 5.1% | 6.8% | 6.0% | 3.2% | 3.9% | 3.7% |
| ROCE | 8.8% | 8.8% | 7.5% | 10.8% | 4.0% | 7.3% | 9.1% | 8.1% | 4.4% | 5.2% | 5.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.04 | 1.04 | 0.90 | 0.87 | 1.13 | 0.95 | 1.00 | 1.15 | 1.01 | 0.94 | 0.83 |
| Debt / EBITDA | 6.30 | 6.30 | 6.78 | 4.62 | 15.45 | 7.13 | 5.69 | 7.47 | 12.57 | 9.94 | 9.50 |
| Net Debt / Equity | — | 1.01 | 0.84 | 0.81 | 1.12 | 0.85 | 0.85 | 1.09 | 0.97 | 0.83 | 0.81 |
| Net Debt / EBITDA | 6.14 | 6.14 | 6.35 | 4.33 | 15.29 | 6.37 | 4.82 | 7.10 | 12.12 | 8.78 | 9.31 |
| Debt / FCF | — | — | — | 21.68 | — | 8.64 | 5.29 | — | — | — | — |
| Interest Coverage | 3.96 | 3.96 | 3.41 | 4.99 | 1.86 | 3.20 | 3.81 | 3.18 | 1.94 | 2.09 | 2.15 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.44 | 1.44 | 1.37 | 1.00 | 1.23 | 0.36 | 7.06 | 4.46 | 0.65 | 3.85 | 0.93 |
| Quick Ratio | 1.44 | 1.44 | 1.37 | 1.00 | 1.23 | 0.36 | 7.06 | 4.46 | 0.65 | 3.85 | 0.93 |
| Cash Ratio | 0.87 | 0.87 | 2.06 | 0.62 | 0.33 | 0.31 | 5.46 | 2.12 | 0.43 | 3.39 | 0.49 |
| Asset Turnover | — | 0.12 | 0.11 | 0.14 | 0.08 | 0.12 | 0.14 | 0.12 | 0.09 | 0.10 | 0.10 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.7% | 5.6% | 7.5% | 7.5% | 5.4% | 4.7% | 5.1% | 4.9% | 5.3% | — | — |
| Payout Ratio | 81.3% | 81.3% | 115.4% | 81.1% | 165.9% | 83.5% | 67.1% | 76.1% | 147.4% | 127.7% | 131.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.4% | 7.3% | 6.4% | 9.1% | 3.2% | 5.6% | 7.5% | 6.5% | 3.6% | — | — |
| FCF Yield | — | — | — | 1.8% | — | 4.2% | 6.9% | — | — | — | — |
| Buyback Yield | 0.2% | 0.1% | 0.1% | 0.3% | 0.1% | 0.1% | 0.1% | 0.2% | 0.2% | — | — |
| Total Shareholder Yield | 5.8% | 5.7% | 7.5% | 7.8% | 5.6% | 4.8% | 5.1% | 5.1% | 5.5% | — | — |
| Shares Outstanding | — | $195M | $162M | $145M | $127M | $116M | $112M | $102M | $91M | $83M | $74M |
Portfolio Valuation Subjectivity
According to current market data, HCXY trades at a P/B of 2.19, which significantly exceeds the peer group average and suggests investors are pricing in the firm's internal management structure and its historical ability to generate realized gains from equity warrants that competitors often lack.
The premium valuation implies that the market views HCXY as a superior compounder rather than a standard yield-focused BDC. Investors should monitor whether this valuation remains sustainable if the IPO and M&A windows remain constrained, as the current multiple assumes a consistent pipeline of warrant-driven upside.
As reported in financial statements, HCXY maintains a robust net margin profile that reached 70.7% in 2025Q3, demonstrating significant pricing power within the venture-debt niche despite the inherent lumpiness of fee income and the periodic impact of non-cash fair value adjustments on quarterly earnings.
The firm's ability to sustain high margins suggests effective control over its cost of capital and strong underwriting discipline. However, the volatility in net margins warrants further investigation into the sustainability of these returns, as they are heavily influenced by the timing of portfolio company exits.
Based on reported figures, HCXY's ROIC has fluctuated between 0.7% and 2.7% over the last ten quarters, reflecting the inherent difficulty in compounding capital in a venture-debt model where returns are tied to the success of early-stage companies rather than steady-state cash flows.
The modest ROIC figures suggest that while the firm is profitable, the capital-intensive nature of its lending model requires constant reinvestment. Investors should interpret these returns in the context of the firm's ability to recycle capital from repayments into new, high-yielding originations.
As indicated by recent quarterly data, HCXY's asset turnover remains low at approximately 0.02 to 0.05, which is characteristic of a BDC model where the primary assets are long-term loans rather than high-velocity inventory or short-term receivables typical of industrial firms.
The low turnover is not necessarily a sign of inefficiency but rather a reflection of the long-duration nature of venture debt. The variability in DSO, which reached 32 days in 2025Q1, suggests that the timing of loan repayments is a critical driver of the firm's short-term liquidity position.
The P/E ratio is frequently misapplied to HCXY, as it obscures the non-cash nature of fair value adjustments and warrant gains that dominate reported net income, making the metric a poor proxy for the actual cash-generating capacity available for dividend distributions to shareholders.
Investors should instead focus on Net Investment Income (NII) and realized gains, which provide a clearer picture of the firm's recurring earning power. Relying on P/E may lead to an inaccurate assessment of valuation, as it fails to account for the volatility inherent in Level 3 asset valuations.
Includes 30+ ratios · 22 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HCXY stock.
Hercules Capital Inc's current P/E ratio is 13.5x. The historical average is 18.3x. This places it at the 25th percentile of its historical range.
Hercules Capital Inc's current EV/EBITDA is 15.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 25.9x.
Hercules Capital Inc's return on equity (ROE) is 16.2%. The historical average is 9.7%.
Based on historical data, Hercules Capital Inc is trading at a P/E of 13.5x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hercules Capital Inc's current dividend yield is 5.66% with a payout ratio of 81.3%.
Hercules Capital Inc has 87.2% gross margin and 66.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Hercules Capital Inc's Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.