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Upturn AI SWOT - About
Hercules Capital Inc (HTGC)
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Upturn Advisory Summary
04/01/2025: HTGC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 1.39% | Avg. Invested days 58 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.31B USD | Price to earnings Ratio 11.86 | 1Y Target Price 21.28 |
Price to earnings Ratio 11.86 | 1Y Target Price 21.28 | ||
Volume (30-day avg) 1477060 | Beta 1.32 | 52 Weeks Range 15.94 - 21.62 | Updated Date 04/2/2025 |
52 Weeks Range 15.94 - 21.62 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 9.79% | Basic EPS (TTM) 1.61 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 53.28% | Operating Margin (TTM) 84.75% |
Management Effectiveness
Return on Assets (TTM) 7.1% | Return on Equity (TTM) 13.87% |
Valuation
Trailing PE 11.86 | Forward PE 9.98 | Enterprise Value 4941924864 | Price to Sales(TTM) 6.7 |
Enterprise Value 4941924864 | Price to Sales(TTM) 6.7 | ||
Enterprise Value to Revenue 14.46 | Enterprise Value to EBITDA - | Shares Outstanding 173155008 | Shares Floating 158450363 |
Shares Outstanding 173155008 | Shares Floating 158450363 | ||
Percent Insiders 1.71 | Percent Institutions 23.5 |
Analyst Ratings
Rating 4 | Target Price 20.86 | Buy 3 | Strong Buy 3 |
Buy 3 | Strong Buy 3 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Hercules Capital Inc
Company Overview
History and Background
Hercules Capital, Inc. (founded in 2003) is a specialty finance company focused on providing venture debt, equity and related services to venture capital-backed companies in technology, life sciences, and sustainable and renewable technology industries. It has evolved into a leading venture debt provider.
Core Business Areas
- Venture Debt Financing: Provides senior secured loans, equipment financing, and selective equity co-investments to growth-stage companies.
- Equity Investments: Makes smaller equity investments, typically alongside debt financings, to participate in the potential upside of portfolio companies.
Leadership and Structure
Scott Bluestein serves as CEO. The company operates as a business development company (BDC), structured to distribute its income to shareholders as dividends.
Top Products and Market Share
Key Offerings
- Venture Debt: Provides debt financing to VC-backed companies, allowing them to extend their runway before needing to raise further equity. While market share data is unavailable for Hercules Capital alone, it is one of the largest players in this space. Competitors include Oxford Finance, Silicon Valley Bank (now First Citizens Bank), and TriplePoint Capital (now part of SLR Investment Corp).
- Equipment Financing: Finances equipment purchases for portfolio companies. Market share data is unavailable. Competitors include traditional banks and leasing companies.
- Equity Co-Investments: Makes equity investments alongside debt, offering potential upside. Market share data is unavailable. Competitors include venture capital firms.
Market Dynamics
Industry Overview
The venture debt industry caters to growth-stage companies seeking non-dilutive financing. It is driven by the need for capital in sectors like technology and life sciences, often when companies are not yet profitable. Changes in interest rates and overall economic conditions heavily influence the industry.
Positioning
Hercules Capital is a leading player in the venture debt market, with a reputation for deep industry expertise and a focus on high-growth sectors. Its strong relationships with venture capital firms provide a competitive advantage.
Total Addressable Market (TAM)
The total addressable market for venture debt is dependent on the amount of VC investment in relevant sectors and is estimated to be in the tens of billions annually. Hercules is well-positioned to capture a significant portion of this market with its brand and industry expertise.
Upturn SWOT Analysis
Strengths
- Strong brand reputation and established market presence
- Deep industry expertise in technology and life sciences
- Extensive relationships with venture capital firms
- Experienced management team
- High-yielding portfolio
Weaknesses
- High dependence on the health of the venture capital market
- Potential for credit losses in a downturn
- Sensitivity to interest rate changes
- Complex regulatory environment for BDCs
- Dividend income is not consistent
Opportunities
- Expanding into new high-growth sectors
- Increasing the size of equity co-investments
- Forming strategic partnerships with other financial institutions
- Benefiting from the growing demand for venture debt financing
- Investing in renewable energy
Threats
- Increased competition from other venture debt providers
- Economic downturn impacting portfolio companies
- Changes in interest rates affecting profitability
- Regulatory changes impacting BDCs
- Decline in VC funding
Competitors and Market Share
Key Competitors
- SLR Investment Corp. (SLRC)
- Main Street Capital (MAIN)
- Ares Capital Corporation (ARCC)
Competitive Landscape
Hercules Capital differentiates itself through its deep industry expertise and strong relationships with venture capital firms. However, it faces competition from larger BDCs with lower costs of capital.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital has experienced significant growth in its loan portfolio and assets under management over the past decade, driven by the increasing demand for venture debt.
Future Projections: Analysts project continued growth for Hercules Capital, driven by its strong market position and the ongoing demand for venture debt in technology and life sciences. However, this growth is subject to market risks.
Recent Initiatives: Hercules Capital has been focused on expanding its investment platform and diversifying its portfolio across different sectors and stages of company development.
Summary
Hercules Capital is a leading venture debt provider, leveraging strong relationships and industry expertise. Its high-yielding portfolio and focus on growth sectors are strengths, but economic downturns and competition pose risks. The company's ability to manage credit risk and navigate the regulatory environment will be critical for its continued success. Overall, Hercules is well-positioned but requires careful monitoring of market dynamics.
Similar Companies
ARCC
Ares Capital Corporation
ARCC
Ares Capital Corporation
MAIN
Main Street Capital Corporation
MAIN
Main Street Capital Corporation
SLRC
SLR Investment Corp
SLRC
SLR Investment Corp
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Analyst Reports
- Industry Research Reports
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share data is based on estimates and may not be precise. Financial data requires current financial reports for the company
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Hercules Capital Inc
Exchange NYSE | Headquaters San Mateo, CA, United States | ||
IPO Launch date 2005-06-09 | CEO, Chief Investment Officer, President & Director Mr. Scott Bluestein | ||
Sector Financial Services | Industry Asset Management | Full time employees 100 | Website https://www.htgc.com |
Full time employees 100 | Website https://www.htgc.com | ||
Hercules Capital, Inc. is a business development company. The firm specializing in providing private equity, venture debt, and growth capital to privately held venture capital-backed companies at all stages of development from mid venture to expansion stage including select publicly listed companies and select special opportunity 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, SaaS Finance, energy technology, sustainable
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