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HTGC 
Hercules Capital Inc (HTGC)
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Upturn Advisory Summary
01/09/2026: HTGC (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
9 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $20.81
1 Year Target Price $20.81
| 3 | Strong Buy |
| 3 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 50.05% | Avg. Invested days 68 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 01/09/2026 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.40B USD | Price to earnings Ratio 10.76 | 1Y Target Price 20.81 |
Price to earnings Ratio 10.76 | 1Y Target Price 20.81 | ||
Volume (30-day avg) 9 | Beta 0.78 | 52 Weeks Range 14.65 - 20.24 | Updated Date 01/9/2026 |
52 Weeks Range 14.65 - 20.24 | Updated Date 01/9/2026 | ||
Dividends yield (FY) 8.77% | Basic EPS (TTM) 1.74 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 60.05% | Operating Margin (TTM) 83.82% |
Management Effectiveness
Return on Assets (TTM) 6.71% | Return on Equity (TTM) 15.36% |
Valuation
Trailing PE 10.76 | Forward PE 9.57 | Enterprise Value 5497624576 | Price to Sales(TTM) 6.58 |
Enterprise Value 5497624576 | Price to Sales(TTM) 6.58 | ||
Enterprise Value to Revenue 13.76 | Enterprise Value to EBITDA - | Shares Outstanding 181718075 | Shares Floating 166857964 |
Shares Outstanding 181718075 | Shares Floating 166857964 | ||
Percent Insiders 1.73 | Percent Institutions 28.16 |
Upturn AI SWOT
Hercules Capital Inc
Company Overview
History and Background
Hercules Capital, Inc. (NYSE: HCI) was founded in 2003. It is a business development company (BDC) that provides senior secured loans, growth capital, and strategic advice to technology and life science companies in the venture capital ecosystem. It has grown to become a leading specialty finance provider in its niche. Key milestones include its IPO and subsequent expansions in its lending and investment strategies.
Core Business Areas
- Venture Debt and Growth Capital: Providing debt financing, typically senior secured loans, to venture-backed companies that are often pre-profitability but have demonstrated strong growth and potential. This includes funding for research and development, working capital, and strategic acquisitions.
- Equity and Warrants: Often receives warrants or equity participation as part of its debt financing deals, providing potential upside from the growth of its portfolio companies.
- Strategic Advisory Services: Offers financial and strategic advice to its portfolio companies, leveraging its industry expertise.
Leadership and Structure
Hercules Capital operates as a business development company (BDC) under the leadership of its management team, including its Chief Executive Officer and Chief Financial Officer. The company is governed by a Board of Directors. Its structure is designed to manage a portfolio of debt and equity investments in technology and life science companies.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: The primary product, providing debt capital with a senior claim on the borrower's assets. This is a cornerstone of their lending strategy. Competitors include other BDCs, traditional banks, and private credit funds that target venture-backed companies. Market share is difficult to quantify precisely for this niche, but Hercules is a dominant player among BDCs focused on venture lending.
- Growth Capital: Financing tailored to the specific growth needs of emerging companies, often encompassing more than just traditional debt. Competitors are similar to senior secured loans.
- Warrant Participation: An ancillary offering that provides potential equity upside. This is not a standalone product but a component of their financing packages. Competitors offer similar structures as part of their financing solutions.
Market Dynamics
Industry Overview
Hercules Capital operates within the specialty finance and venture debt sectors. This industry is characterized by providing capital to early-stage and growth-stage companies, often in technology and life sciences, that may not have access to traditional bank financing. The market is influenced by venture capital funding trends, interest rate environments, and the overall health of the technology and life science industries. The sector has seen significant growth driven by increased innovation and the demand for specialized capital solutions.
Positioning
Hercules Capital is a leading provider of venture debt and growth capital to venture-backed companies in the US. Its competitive advantages include deep industry expertise, a long track record, strong relationships within the venture capital community, and a disciplined underwriting approach. It is well-positioned to capitalize on the ongoing innovation in the tech and life sciences sectors.
Total Addressable Market (TAM)
The TAM for venture debt and growth capital is substantial and growing, driven by the significant investment in venture capital globally and the increasing capital needs of technology and life science companies. While precise TAM figures are fluid, it can be estimated in the hundreds of billions of dollars. Hercules Capital is positioned as a significant player within this TAM, particularly among BDCs, serving a segment that requires specialized financial expertise and risk assessment.
Upturn SWOT Analysis
Strengths
- Leading market position in venture debt for tech and life sciences.
- Deep industry expertise and strong relationships with VCs and entrepreneurs.
- Diversified portfolio across various sub-sectors within tech and life sciences.
- Experienced management team with a proven track record.
- Ability to structure customized financing solutions.
Weaknesses
- Concentration risk within the technology and life science sectors.
- Sensitivity to economic downturns affecting venture capital funding and portfolio company performance.
- Reliance on a specific client base (venture-backed companies) can create cyclicality.
- Regulatory complexities associated with BDCs.
Opportunities
- Growing demand for venture debt from innovative startups.
- Expansion into new technology or life science sub-sectors.
- Increased deal flow due to a robust venture capital ecosystem.
- Potential for strategic partnerships or acquisitions.
- Leveraging technology for enhanced underwriting and portfolio management.
Threats
- Increased competition from other BDCs, private credit funds, and traditional lenders.
- Rising interest rates impacting borrowing costs for portfolio companies and potentially increasing defaults.
- Market downturns leading to reduced venture funding and increased portfolio company distress.
- Changes in regulatory landscape affecting BDCs.
- Technological disruptions impacting the target industries.
Competitors and Market Share
Key Competitors
- BlackRock Capital Investment Corporation (BKCC)
- Apollo Investment Corporation (AINV)
- Golub Capital BDC, Inc. (GBDC)
- Carlyle Group Inc. (CG)
Competitive Landscape
Hercules Capital's advantage lies in its specialized focus and deep relationships within the venture capital ecosystem, which allows it to access attractive deal flow and underwrite effectively. Its competitors may have broader strategies or larger scale, but Hercules' niche expertise is a key differentiator. Disadvantages could include the inherent risks of lending to early-stage companies and potential capital constraints compared to larger financial institutions.
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital has demonstrated consistent growth in its investment portfolio and recurring income over the past several years, driven by its strong origination capabilities and the expanding venture capital landscape. (Numerical data on portfolio growth and income growth over past years would be provided).
Future Projections: Analyst projections often focus on the continued expansion of the loan portfolio, stable net interest margins, and potential for equity gains from warrant positions. Growth is expected to be supported by favorable market conditions and the company's established position. (Numerical data representing analyst consensus for future revenue, net income, and EPS would be provided).
Recent Initiatives: Recent initiatives may include expanding its lending capacity, exploring new industry verticals within its focus areas, or optimizing its operational efficiency. (Specific details of recent strategic initiatives would be described here).
Summary
Hercules Capital Inc is a strong player in the niche venture debt market, benefiting from a robust venture capital ecosystem and deep industry expertise. Its core strength lies in providing tailored financing solutions to technology and life science companies. While facing competition and inherent industry risks, its established position and consistent dividend payouts make it an attractive investment. Continued focus on disciplined underwriting and strategic growth will be crucial for its future success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Hercules Capital Inc. Investor Relations
- SEC Filings (10-K, 10-Q)
- Financial News Outlets (e.g., Bloomberg, Wall Street Journal)
- Financial Data Providers (e.g., Refinitiv, FactSet)
Disclaimers:
This JSON output is generated for informational purposes only and does not constitute investment advice. Financial data is subject to change and may be based on estimates and projections. Investors should conduct their own due diligence before making any investment decisions.
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 San Mateo, CA, United States | ||
IPO Launch date 2005-06-09 | CEO - | ||
Sector Financial Services | Industry Asset Management | Full time employees 100 | Website https://www.htgc.com |
Full time employees 100 | Website https://www.htgc.com | ||
Hercules Capital, Inc. is a business development company. The firm specializing in providing private equity, venture debt, and growth capital to privately held venture capital-backed companies at all stages of development from mid venture to expansion stage including select publicly listed companies and select special opportunity 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, 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 the date of their investment. It prefers to invest in technology, SaaS Finance, energy technology, sustainable
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