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Upturn AI SWOT - About
Hercules Capital Inc (HCXY)
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Upturn Advisory Summary
10/16/2025: 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.
Analysis of Past Performance
Type Stock | Historic Profit -2.98% | Avg. Invested days 51 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/16/2025 |
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. was founded in December 2003, originally named Hercules Technology Growth Capital, Inc. It is a specialty finance company providing venture debt, with its principal investment objective to maximize its portfolio total return by generating current income from its debt investments and capital gains from its warrant and equity investments.
Core Business Areas
- Venture Debt Financing: Hercules Capital focuses on providing senior secured venture debt to high-growth, innovative venture capital-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries.
- Equity and Warrants: In addition to debt investments, Hercules often receives warrants or other equity securities, providing potential for capital gains.
- Fee Income: Generates income from transaction fees, such as origination, structuring and facility fees.
Leadership and Structure
Scott Bluestein serves as the Chief Executive Officer. The company operates as a business development company (BDC) and is structured with a board of directors and an executive management team.
Top Products and Market Share
Key Offerings
- Senior Secured Venture Debt: Primary offering; provides debt financing to venture capital-backed companies. Hercules is a leading provider in this niche market, though exact market share data is difficult to ascertain precisely but its total investment portfolio of approximately $3 billion gives it a significant market presence. Competitors include Ares Capital (ARCC), and other BDCs with venture debt portfolios, as well as some venture debt funds.
- Warrants and Equity Investments: Provides upside potential through equity ownership in portfolio companies. These investments are smaller individually but can provide significant returns if the underlying companies succeed. Competitors for equity investment are other BDC and Venture Capital companies.
Market Dynamics
Industry Overview
The venture debt market is driven by the need for growth capital among venture-backed companies, particularly in technology and life sciences. Demand fluctuates with the overall venture capital environment.
Positioning
Hercules is a leader in the venture debt space, known for its specialization and experience in lending to technology and life sciences companies. It benefits from its established relationships with venture capital firms.
Total Addressable Market (TAM)
The total addressable market for venture debt is estimated in the tens of billions of dollars annually, influenced by venture capital investment activity. Hercules is positioned to capture a significant share of this market due to its specialization and established reputation.
Upturn SWOT Analysis
Strengths
- Specialized expertise in venture debt
- Strong relationships with venture capital firms
- Experienced management team
- High dividend yield (attractive to investors)
- Disciplined underwriting process
Weaknesses
- Concentration risk in technology and life sciences sectors
- Sensitivity to interest rate changes
- Potential for credit losses due to the risk profile of borrowers
- Reliance on external financing for growth
Opportunities
- Growing demand for venture debt financing
- Expansion into new technology and life sciences sub-sectors
- Strategic acquisitions to expand market reach
- Increased adoption of venture debt as a financing alternative
Threats
- Economic downturn impacting venture capital funding
- Increased competition in the venture debt market
- Regulatory changes affecting BDCs
- Rising interest rates increasing borrowing costs
- Deterioration in credit quality of borrowers
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- TCPC
- PSEC
Competitive Landscape
Hercules Capital has a focused business model in venture debt, a strength that allows it to command higher multiples, but that could limit it's future options if that space diminishes. ARCC has a greater breadth of financing options and MAIN is focused on Lower Middle Market companies.
Growth Trajectory and Initiatives
Historical Growth: Hercules has shown steady growth in its investment portfolio and net investment income over the past years. Growth rates depend on broader venture capital industry trends.
Future Projections: Analyst projections often estimate continued growth in net investment income and dividend payouts, but these are subject to economic and market conditions.
Recent Initiatives: Hercules focuses on expanding their reach into new sectors within technology and life sciences and streamlining operation for optimal performance.
Summary
Hercules Capital is a leading BDC specializing in venture debt, offering high dividend yields to investors. The company benefits from its expertise in technology and life sciences lending, but it faces risks associated with economic downturns and credit quality of its borrowers. Strategic initiatives to expand its reach and manage its portfolio risk are crucial for maintaining its growth trajectory. It faces pressures from larger BDCs with more diversified portfolios, and increased competition in the venture debt space.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Investor presentations
- Analyst reports
- Financial news sources
Disclaimers:
The data and analysis provided are for informational purposes only and do not constitute financial advice. Investment decisions should be made based on thorough research and consultation with a financial professional. Market share data is based on estimations and may not be precise.
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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