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Hercules Capital Inc (HCXY)
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Upturn Advisory Summary
12/04/2025: 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 -2.71% | Avg. Invested days 56 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/04/2025 |
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, California. It's a specialty finance company focused on providing venture debt, in addition to senior secured loans, to high-growth, innovative venture capital-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries.
Core Business Areas
- Venture Debt Financing: Provides customized financing solutions to venture capital-backed companies, primarily in the form of debt financing. This includes term loans, revolving credit facilities, and equipment financing.
- Direct Origination: Hercules Capital originates its investments directly, establishing relationships with venture capital firms and management teams of portfolio companies.
Leadership and Structure
Scott Bluestein is the CEO of Hercules Capital. The organizational structure is based on managing investments through a team of investment professionals with expertise in the targeted industries. They operate as a BDC, which requires a specific regulatory and operational framework.
Top Products and Market Share
Key Offerings
- Term Loans: Provides term loans to venture-backed companies, used for various purposes including growth capital, acquisitions, and recapitalizations. While exact market share data is difficult to pinpoint, Hercules is a leading player in the venture debt space. Competitors include other BDCs like Ares Capital and SLR Investment Corp.
- Revolving Credit Facilities: Offers revolving credit facilities for short-term working capital needs. Market share data is not readily available but Hercules is a strong player with direct access and relationship. Main competitors would be other BDC who can give higher capital in revolving debts.
Market Dynamics
Industry Overview
The venture debt industry is dynamic, driven by the needs of venture-backed companies seeking capital beyond equity financing. Factors impacting the industry include venture capital funding levels, interest rate environment, and regulatory changes.
Positioning
Hercules Capital is positioned as a leading provider of venture debt. Its competitive advantages include its industry expertise, established relationships with venture capital firms, and a flexible approach to structuring deals.
Total Addressable Market (TAM)
TAM is estimated in the billions of dollars annually for venture debt. Hercules is well-positioned to capture a significant portion of this market due to its specialization and strong reputation.
Upturn SWOT Analysis
Strengths
- Deep industry expertise
- Strong relationships with venture capital firms
- Flexible financing solutions
- Experienced management team
- Direct origination platform
Weaknesses
- Exposure to high-risk venture-backed companies
- Interest rate sensitivity
- Reliance on venture capital funding
- Potential for credit losses
- Highly regulated environment as BDC
Opportunities
- Growth in venture capital funding
- Expansion into new industries and geographies
- Increasing demand for venture debt
- Strategic acquisitions
- Partnerships with other financial institutions
Threats
- Economic downturns
- Increased competition
- Changes in regulations
- Rising interest rates
- Venture capital market volatility
Competitors and Market Share
Key Competitors
- Ares Capital Corporation (ARCC)
- SLR Investment Corp. (SLRC)
- Main Street Capital Corporation (MAIN)
Competitive Landscape
Hercules Capital excels through its exclusive focus on venture-backed companies, fostering specialized expertise and connections. Competitors such as ARCC, while larger, have broader investment mandates and may not possess the same level of specialization.
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital's growth has been driven by the expanding venture capital market and its ability to originate quality deals. (Specific growth rates need to be pulled from financial records)
Future Projections: Analyst projections depend on the overall economic outlook, venture capital activity, and Hercules Capital's ability to maintain its market position. (Specific growth rates need to be pulled from analyst reports)
Recent Initiatives: Recent initiatives might include expansion into new sectors, strategic partnerships, or adjustments to its investment strategy.
Summary
Hercules Capital is a leading venture debt provider focusing on high-growth, innovative companies. Its strength lies in its specialization, deep industry knowledge, and relationships with venture capital firms. The company faces risks inherent in lending to early-stage companies and is susceptible to interest rate fluctuations and economic downturns. However, the growing venture capital market and strategic initiatives present opportunities for continued growth.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share data is approximate and may vary depending on the source. Financial data should be verified with official company filings.
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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