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Upturn AI SWOT - About
Hercules Capital Inc (HCXY)
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Upturn Advisory Summary
06/30/2025: HCXY (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.
Number of Analysts
Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $
1 Year Target Price $
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -5.94% | Avg. Invested days 50 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/30/2025 |
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 - |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
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 senior secured loans to high-growth, venture-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. Since its inception, it has grown into a leading lender in its target markets.
Core Business Areas
- Venture Debt Financing: Provides senior secured loans, including term loans and revolving lines of credit, to venture-backed companies.
- Direct Investments: Makes equity investments, typically as part of larger financing rounds, alongside venture capital funds.
Leadership and Structure
Scott Bluestein serves as the Chief Executive Officer and Chairman. The company operates with a team of investment professionals, portfolio managers, and support staff.
Top Products and Market Share
Key Offerings
- Term Loans: Term loans are the primary offering, providing significant capital to support growth, acquisitions, and working capital needs. Market share data specific to Hercules is challenging to obtain precisely, but they are a dominant player in venture debt to venture-backed companies. Competitors include Trinity Capital (TRIN), SLR Investment Corp (SLRC) and Oxford Square Capital Corp (OXSQ).
- Revolving Lines of Credit: Revolving lines of credit provide flexible access to capital for short-term needs and growth. Similar to term loans, specific market share data is difficult to find and is heavily reliant on venture capital activity. Competitors include Trinity Capital (TRIN), SLR Investment Corp (SLRC) and Oxford Square Capital Corp (OXSQ).
Market Dynamics
Industry Overview
The venture debt industry is a specialized segment of the broader lending market, focused on providing capital to venture-backed companies. Demand is driven by the need for growth capital and the desire of companies to avoid equity dilution. The market is sensitive to interest rate changes and economic cycles.
Positioning
Hercules Capital is a leading provider of venture debt financing. Its competitive advantage lies in its deep industry expertise, established relationships with venture capital firms, and ability to provide customized financing solutions. Hercules specializes in higher risk loans and charges higher interest rates, therefore, earning greater profits.
Total Addressable Market (TAM)
The TAM is estimated to be several billions of dollars annually, reflecting the significant venture capital activity and the demand for debt financing. Hercules is well-positioned to capture a substantial portion of this market.
Upturn SWOT Analysis
Strengths
- Deep industry expertise
- Established relationships with venture capital firms
- Customized financing solutions
- Strong track record of portfolio performance
- Experienced management team
Weaknesses
- High dependence on venture capital activity
- Exposure to credit risk in early-stage companies
- Sensitivity to interest rate changes
- Concentration risk in specific industries
- External management structure can be perceived as a weakness.
Opportunities
- Expansion into new industry verticals
- Increasing demand for venture debt financing
- Strategic acquisitions to expand market share
- Growth in sustainable and renewable technology sectors
- Develop new products and services
Threats
- Economic downturns impacting venture capital activity
- Increased competition from other lenders
- Rising interest rates increasing borrowing costs
- Regulatory changes impacting lending practices
- Defaults from venture-backed companies
Competitors and Market Share
Key Competitors
- TRIN
- SLRC
- OXSQ
Competitive Landscape
Hercules Capitalu2019s advantages include its long-standing reputation, deep industry knowledge, and ability to offer tailored financing solutions. Disadvantages may include a higher risk profile due to its focus on early-stage companies.
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital's growth has been driven by the increasing demand for venture debt financing. Past performance requires detailed financial data.
Future Projections: Future growth projections are based on analyst estimates and market conditions. These estimates are subject to change.
Recent Initiatives: Recent initiatives may include new financing products, strategic partnerships, or expansions into new markets. Requires up-to-date company information.
Summary
Hercules Capital is a leading venture debt provider with a strong track record, leveraging its industry expertise and VC relationships. Its success hinges on the health of the venture capital ecosystem and the careful management of credit risk in early-stage companies. Increasing competition and potential economic downturns pose significant challenges. The company needs to focus on diversification and maintaining strong underwriting standards to sustain long-term growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Financial news sources
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market share data is estimated and may not be precise. Financial data and analyst estimates are subject to change.
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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