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Upturn AI SWOT - About
Hercules Capital Inc (HCXY)
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Upturn Advisory Summary
09/12/2025: 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 -4.75% | Avg. Invested days 46 | 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 09/12/2025 |
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 and is headquartered in Palo Alto, CA. It is a specialty finance company focused on providing venture debt and equity to venture capital-backed companies in technology, life sciences, and sustainable and renewable technology industries.
Core Business Areas
- Venture Debt Financing: Provides senior secured loans to venture capital-backed companies, primarily in their growth stage. These loans are typically used for working capital, financing acquisitions, and other growth initiatives.
- Equity Investments: Makes equity investments, often in conjunction with debt financing, to enhance overall returns.
Leadership and Structure
Scott Bluestein serves as the Chief Executive Officer. Hercules operates as a business development company (BDC), structured as a publicly traded investment company.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: This is the core product, providing debt financing to venture-backed companies. Market share data specific to Hercules is not readily available. Competitors include other BDCs and venture debt funds such as TriplePoint Venture Growth BDC (TPVG) and Oxford Square Capital Corp. (OXSQ).
- Equity Investments: Hercules also makes equity investments, typically alongside its debt financing. Revenue from equity investments contributes to overall returns. Competitors for equity investments include venture capital firms and angel investors.
Market Dynamics
Industry Overview
The venture debt market caters to high-growth, venture-backed companies that may not qualify for traditional bank loans. This market is driven by innovation and the need for flexible financing solutions.
Positioning
Hercules Capital is a leading provider of venture debt, known for its expertise in technology and life sciences. Its competitive advantage lies in its specialized knowledge, established network, and ability to provide tailored financing solutions.
Total Addressable Market (TAM)
The venture debt market is estimated to be in the tens of billions of dollars annually. Hercules Capital is positioned to capture a significant portion of this TAM due to its leading position and specialized focus.
Upturn SWOT Analysis
Strengths
- Established brand and reputation in the venture debt market
- Deep expertise in technology and life sciences industries
- Strong relationships with venture capital firms
- Experienced management team
- Publicly traded structure provides access to capital
Weaknesses
- High dependence on the venture capital ecosystem
- Credit risk associated with lending to early-stage companies
- Sensitivity to interest rate fluctuations
- Relatively high operating expenses compared to traditional lenders
Opportunities
- Expanding into new sectors within technology and life sciences
- Increasing the size of individual loans
- Forming strategic partnerships with other financial institutions
- Capitalizing on the growing demand for venture debt financing
- Increasing equity co-investments
Threats
- Economic downturns can impact venture capital funding and portfolio company performance
- Increased competition from other venture debt providers
- Regulatory changes affecting BDCs
- Rising interest rates can increase borrowing costs for portfolio companies
- Technological disruption in its core industries
Competitors and Market Share
Key Competitors
- TPVG
- OXSQ
- MAIN
- ARCC
- SLRC
Competitive Landscape
Hercules Capital has advantages in its brand recognition and specialized expertise. Disadvantages may include higher operating expenses and dependence on the venture capital ecosystem.
Growth Trajectory and Initiatives
Historical Growth: Hercules has experienced growth in its loan portfolio and investment income over the past several years, driven by the expanding venture capital market.
Future Projections: Analysts project continued growth for Hercules Capital, driven by increasing demand for venture debt and the company's ability to deploy capital effectively. Projections vary based on market conditions and investment performance.
Recent Initiatives: Recent initiatives include expanding its team, increasing investment in specific sectors, and refining its underwriting processes.
Summary
Hercules Capital is a leading venture debt provider with a strong presence in the technology and life sciences industries. Its BDC structure provides regular dividends, but its performance is tied to the venture capital market's health. Potential threats include economic downturns and increased competition. The company's expertise and established network position it well for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Earnings Call Transcripts
- Analyst Reports
- Industry Publications
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share estimates are based on available data and may not be precise. Investment decisions should be made based on individual risk tolerance and due diligence.
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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