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Upturn AI SWOT - About
HTGC 
Hercules Capital Inc (HTGC)
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Upturn Advisory Summary
10/10/2025: HTGC (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Number of Analysts
9 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $21.16
1 Year Target Price $21.16
| 3 | Strong Buy |
| 3 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 48.27% | Avg. Invested days 76 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/10/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.03B USD | Price to earnings Ratio 10.99 | 1Y Target Price 21.16 |
Price to earnings Ratio 10.99 | 1Y Target Price 21.16 | ||
Volume (30-day avg) 9 | Beta 0.89 | 52 Weeks Range 14.98 - 20.70 | Updated Date 10/12/2025 |
52 Weeks Range 14.98 - 20.70 | Updated Date 10/12/2025 | ||
Dividends yield (FY) 9.38% | Basic EPS (TTM) 1.52 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 51.46% | Operating Margin (TTM) 83.23% |
Management Effectiveness
Return on Assets (TTM) 6.64% | Return on Equity (TTM) 12.94% |
Valuation
Trailing PE 10.99 | Forward PE 9.71 | Enterprise Value 5024923648 | Price to Sales(TTM) 6.02 |
Enterprise Value 5024923648 | Price to Sales(TTM) 6.02 | ||
Enterprise Value to Revenue 15.67 | Enterprise Value to EBITDA - | Shares Outstanding 181675683 | Shares Floating 166789841 |
Shares Outstanding 181675683 | Shares Floating 166789841 | ||
Percent Insiders 1.75 | Percent Institutions 27.57 |
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 is a specialty finance company focused on providing venture debt and growth capital to technology, life sciences, and sustainable and renewable technology companies at all stages of development.
Core Business Areas
- Venture Debt Financing: Provides senior secured loans to venture capital-backed companies. These loans are typically used for working capital, acquisitions, and refinancing.
- Growth Capital Financing: Provides capital for later-stage companies looking to expand their operations or make strategic acquisitions.
- Direct Investments: Makes equity investments, often in conjunction with debt financing. This allows them to share in the upside potential of the companies they finance.
Leadership and Structure
Ares Management Corporation (NYSE: ARES) is the investment advisor to Hercules Capital, Inc. Scott Bluestein serves as Chief Executive Officer and Chief Investment Officer. The company operates as a business development company (BDC), managed by an external advisor, and has a board of directors overseeing its operations.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: Provides first lien or second lien senior secured loans to venture-backed companies. These are its primary product, generating significant revenue. Market share data specifically for senior secured loans to venture-backed companies is difficult to ascertain, but Hercules is a major player in this niche. Competitors include other BDCs and venture debt funds. Competitors: Trinity Capital (TRIN), SLR Investment Corp (SLRC), PennantPark Investment Corporation (PNNT).
- Equity Investments: Makes minority equity investments, often alongside debt. These investments can provide significant returns if the company is successful. Revenue varies significantly depending on the performance of the portfolio companies. Competitors include venture capital funds and angel investors. Competitors: General Atlantic, Kleiner Perkins, Sequoia Capital.
Market Dynamics
Industry Overview
The venture debt market is characterized by high growth potential, driven by the increasing need for financing among innovative companies, particularly in the technology, life sciences and renewable energy sectors. BDCs provide an important source of capital for these companies. The industry is sensitive to interest rates and economic conditions.
Positioning
Hercules Capital is a leading provider of venture debt and growth capital, specifically tailored to meet the needs of innovative companies. Its competitive advantage lies in its deep industry expertise, strong relationships with venture capital firms, and flexible financing solutions. Hercules Capital has a large loan portfolio and is well known in the venture lending space.
Total Addressable Market (TAM)
The TAM for venture debt is estimated to be billions of dollars annually. Hercules is positioned to capitalize on this TAM by focusing on high-growth sectors and maintaining a strong underwriting process.
Upturn SWOT Analysis
Strengths
- Strong brand recognition and reputation in the venture debt market
- Experienced management team with deep industry expertise
- Established relationships with leading venture capital firms
- Disciplined underwriting process
- Significant scale and market presence
Weaknesses
- Dependence on external management (Ares Management)
- Exposure to credit risk associated with lending to early-stage companies
- Sensitivity to interest rate fluctuations
- High operating expenses relative to some peers
- Limited diversification outside of technology and life sciences
Opportunities
- Growing demand for venture debt as venture capital funding slows
- Expansion into new geographies or industry verticals
- Increased investment in sustainable and renewable technology
- Strategic acquisitions of smaller competitors
- Development of new financing products and services
Threats
- Increased competition from other BDCs and venture debt funds
- Economic downturn could lead to higher default rates
- Changes in regulations impacting BDCs
- Rising interest rates could increase borrowing costs for portfolio companies
- Technological disruptions could impact portfolio company valuations
Competitors and Market Share
Key Competitors
- TRIN
- SLRC
- PNNT
Competitive Landscape
Hercules Capital has advantages in brand recognition, scale, and relationships with venture capital firms. Disadvantages include dependence on an external manager (Ares) and a concentration in technology and life sciences.
Growth Trajectory and Initiatives
Historical Growth: Hercules Capital has experienced significant growth in its loan portfolio and assets under management over the past years. This growth has been driven by increased demand for venture debt and the company's ability to originate and manage investments.
Future Projections: Future growth is expected to be driven by continued demand for venture debt, as well as the company's ability to capitalize on new investment opportunities. Analyst estimates vary, but generally reflect expectations for continued growth in revenue and earnings.
Recent Initiatives: Recent initiatives include expanding the investment team, focusing on specific industry verticals, and developing new financing products and services.
Summary
Hercules Capital is a leading BDC specializing in venture debt, demonstrating a strong market position and experienced management. Its established relationships with venture capital firms and disciplined underwriting contribute to consistent growth. However, its reliance on an external manager and exposure to credit risk in early-stage companies pose challenges. Diversifying into new sectors and mitigating interest rate sensitivity are important considerations for the company's future success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Hercules Capital Inc. Investor Relations
- SEC Filings (10-K, 10-Q, 8-K)
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly, so it is essential to conduct thorough research before making 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, Chief Investment Officer, President & Director Mr. Scott Bluestein | ||
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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