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Upturn AI SWOT - About
Hercules Capital Inc (HTGC)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
06/30/2025: HTGC (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
9 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Year Target Price $20.62
Year Target Price $20.62
| 3 | Strong Buy |
| 3 | Buy |
| 3 | Hold |
| 0 | Under performing |
| 0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit 40.64% | Avg. Invested days 64 | 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 06/30/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.18B USD | Price to earnings Ratio 13.64 | 1Y Target Price 20.62 |
Price to earnings Ratio 13.64 | 1Y Target Price 20.62 | ||
Volume (30-day avg) 9 | Beta 0.86 | 52 Weeks Range 15.30 - 21.14 | Updated Date 06/30/2025 |
52 Weeks Range 15.30 - 21.14 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 10.36% | Basic EPS (TTM) 1.33 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 45.23% | Operating Margin (TTM) 83.3% |
Management Effectiveness
Return on Assets (TTM) 6.67% | Return on Equity (TTM) 11.44% |
Valuation
Trailing PE 13.64 | Forward PE 10.01 | Enterprise Value 5081083904 | Price to Sales(TTM) 6.47 |
Enterprise Value 5081083904 | Price to Sales(TTM) 6.47 | ||
Enterprise Value to Revenue 16.66 | Enterprise Value to EBITDA - | Shares Outstanding 175426000 | Shares Floating 160356431 |
Shares Outstanding 175426000 | Shares Floating 160356431 | ||
Percent Insiders 1.83 | Percent Institutions 25.02 |
Analyst Ratings
Rating 3 | Target Price 20.62 | Buy 3 | Strong Buy 3 |
Buy 3 | Strong Buy 3 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Hercules Capital Inc
Company Overview
History and Background
Hercules Capital Inc. was founded in 2003 and is headquartered in Palo Alto, California. 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. Hercules has evolved into a leading provider of growth capital to innovative companies.
Core Business Areas
- Venture Debt Financing: Hercules primarily provides senior secured venture debt to high-growth, venture capital-backed companies. This includes term loans and revolving credit facilities.
- Equity Investments: In addition to debt financing, Hercules also makes strategic equity investments, typically in conjunction with its debt investments, providing potential upside.
- Capital Markets: Hercules engages in capital markets activities to manage its funding needs and optimize its capital structure.
Leadership and Structure
Scott Bluestein serves as the Chief Executive Officer and President. The company has a board of directors overseeing its management. The organizational structure is centered around investment teams specializing in different industry verticals.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: These loans are primarily offered to venture-backed companies. Market share data is difficult to pinpoint exactly but Hercules is a leading player. Competitors include Oxford Finance, Trinity Capital and SLR Investment Corp.
- Revolving Lines of Credit: Provides companies with short-term funding flexibility. Market share and revenue are less transparent for this specific product but is secondary to term loans. Competitors include Oxford Finance, Trinity Capital and SLR Investment Corp.
- Equity Co-Investments: Small equity investments alongside debt positions. Revenue from these investments fluctuate. Competitors are Venture Capital firms and angels.
Market Dynamics
Industry Overview
The venture debt market is driven by the need for growth capital among venture-backed companies. The industry is competitive, with increasing demand from companies seeking non-dilutive financing.
Positioning
Hercules is a leading provider of venture debt, known for its deep expertise in technology and life sciences. Its competitive advantage lies in its established relationships with venture capital firms and its ability to structure complex financing solutions.
Total Addressable Market (TAM)
The TAM for venture debt is estimated in the billions of dollars annually. Hercules is well-positioned to capture a significant portion of this market through its established brand and expertise.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Experienced management team
- Deep industry expertise in technology and life sciences
- Established relationships with venture capital firms
- Diversified portfolio of investments
Weaknesses
- Reliance on venture capital funding environment
- Exposure to credit risk in high-growth companies
- Interest rate sensitivity
- Smaller market capitalization compared to other BDCs
Opportunities
- Increasing demand for venture debt financing
- Expansion into new industry verticals
- Strategic acquisitions
- Growing focus on sustainable and renewable technology
Threats
- Economic downturn impacting venture capital activity
- Increased competition from other lenders
- Regulatory changes affecting BDCs
- Rising interest rates
Competitors and Market Share
Key Competitors
- OXSQ
- TPVG
- ARCC
Competitive Landscape
Hercules benefits from its focused industry expertise and established VC relationships. Competitors may have larger capital bases or different risk appetites. Hercules differentiates itself via its deep technology and life sciences experience.
Major Acquisitions
None
- Year: 2023
- Acquisition Price (USD millions): 0
- Strategic Rationale: N/A
Growth Trajectory and Initiatives
Historical Growth: Hercules has demonstrated consistent growth in its investment portfolio and earnings over the past several years, driven by increased demand for venture debt.
Future Projections: Analysts project continued growth for Hercules, driven by the expansion of the venture capital ecosystem and the company's ability to capitalize on new opportunities.
Recent Initiatives: Recent initiatives include expanding its investment focus to include new sectors and increasing its commitment to sustainable and renewable technology companies.
Summary
Hercules Capital is a strong player in the venture debt market, leveraging its industry expertise and relationships. Its ability to generate consistent returns and pay attractive dividends is a plus. However, its reliance on the venture capital environment and credit risk are factors to consider, as are fluctuations in interest rates.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Financial data is simulated and may not reflect actual performance. Market share estimates are approximate.
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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