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Upturn AI SWOT - About
Hercules Capital Inc (HCXY)
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Upturn Advisory Summary
08/14/2025: HCXY (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
0 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
Analysis of Past Performance
Type Stock | Historic Profit -5.62% | Avg. Invested days 44 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.32B USD | Price to earnings Ratio 19.41 | 1Y Target Price - |
Price to earnings Ratio 19.41 | 1Y Target Price - | ||
Volume (30-day avg) - | Beta - | 52 Weeks Range 23.20 - 25.29 | Updated Date 06/28/2025 |
52 Weeks Range 23.20 - 25.29 | Updated Date 06/28/2025 | ||
Dividends yield (FY) 4.96% | Basic EPS (TTM) - |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE 19.41 | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value - | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Upturn AI SWOT
Hercules Capital Inc
Company Overview
History and Background
Hercules Capital, Inc. (founded in 2003) is a specialty finance company providing venture debt and equity to venture capital-backed companies in technology, life sciences, and sustainable and renewable technology industries. It began trading publicly in 2005.
Core Business Areas
- Venture Debt Financing: Provides term loans, revolving loans, and bridge loans to venture-backed companies.
- Equity Investments: Makes equity investments in the form of warrants and direct equity.
- Underwriting and Syndication: Originates, structures, and underwrites financing transactions, sometimes syndicating portions of these transactions to other investors.
Leadership and Structure
Scott Bluestein is the CEO. The company operates as a Business Development Company (BDC) with a board of directors and a management team responsible for investment decisions and operations.
Top Products and Market Share
Key Offerings
- Term Loans: Provides secured term loans to venture-backed companies. Market share data isn't readily available at product level. Competitors include other BDCs such as Ares Capital and Main Street Capital, and traditional venture debt funds.
- Revolving Loans: Offers revolving lines of credit. Market share data isn't readily available at product level. Competitors include other BDCs such as Ares Capital and Main Street Capital, and traditional venture debt funds.
- Equity/Warrants: Includes equity investments and warrants. Market share data isn't readily available at product level. The number of users of their equity depends on the companies they invest in.
Market Dynamics
Industry Overview
The venture debt market caters to venture-backed companies that require capital but may not qualify for traditional bank loans. It's a niche market driven by the need for growth capital in the technology and life sciences sectors.
Positioning
Hercules Capital is a leading provider of venture debt. Its competitive advantage lies in its deep industry expertise, established relationships with venture capital firms, and focus on high-growth companies.
Total Addressable Market (TAM)
The total addressable market (TAM) is estimated to be tens of billions of dollars annually, considering the venture capital funding and debt needs of venture-backed companies. Hercules Capital is well-positioned to capture a significant share of this TAM.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Strong relationships with venture capital firms
- Focus on high-growth technology and life sciences sectors
- Disciplined underwriting process
- Publicly traded BDC structure
Weaknesses
- High concentration in technology and life sciences sectors
- Credit risk associated with venture-backed companies
- Sensitivity to interest rate changes
- Reliance on external financing
Opportunities
- Growing demand for venture debt financing
- Expansion into new geographic markets
- Increased investment in sustainable and renewable technologies
- Strategic acquisitions of smaller BDCs
- Further develop the equity investment portfolio
Threats
- Economic downturn impacting venture capital funding
- Increased competition from other BDCs and venture debt funds
- Regulatory changes affecting BDCs
- Interest rate hikes increasing borrowing costs
- Potential for defaults in portfolio companies
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- TCPC
- PSEC
- OXSQ
Competitive Landscape
Hercules Capital is a market leader with significant venture debt experience. Competitors include other BDCs and venture debt funds.
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital's growth has been driven by increased demand for venture debt financing and strategic investments.
Future Projections: Future growth projections depend on analyst estimates. Analyst forecasts are required.
Recent Initiatives: Hercules Capital focuses on strategic initiatives to grow their portfolio and increase shareholder value.
Summary
Hercules Capital is a strong player in the venture debt market, leveraging expertise and VC relationships. However, high sector concentration and credit risks associated with venture-backed companies need consideration. Growth hinges on market expansion and effective risk management.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Company Investor Relations
- Financial News Sources
- Industry Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market data is subject to change. Do your own research.
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 - | ||
IPO Launch date 2018-09-27 | CEO - | ||
Sector Financials | Industry Investment Banking & Investment Services | Full time employees 67 | Website |
Full time employees 67 | Website | ||
Hercules Capital, Inc., formerly known as Hercules Technology Growth Capital, Inc., is a business development company 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, seed, startups, early stage, 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
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