Hercules Capital Intrinsic Value – HERCULES CAPITAL Reports Fourth Quarter FY2022 Earnings Results on December 31, 2022
March 26, 2023
Earnings Overview
Hercules Capital ($NYSE:HTGC) announced their Fourth Quarter FY2022 earnings results on December 31, 2022. The total revenue achieved was a remarkable USD 62.5 million, representing a 1585.4% increase year over year. Net income also saw an impressive boost of 220.7%, amounting to USD 84.7 million.
Transcripts Simplified
Hercules Capital achieved a record performance in 2022, with total gross debt and equity commitments of $3.12 billion, record debt investment portfolio growth of $598.5 million, record total investment income of $322 million, record net investment income of $188 million, increased base distribution to $0.39 per share in Q4, record cash distributions of $1.96 declared for 2022, and over $330 million of investments assigned to and funded by the adviser funds managed by their wholly-owned RIA. The fourth quarter saw strong gross fundings of $367 million and net debt investment portfolio growth of over $133 million.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hercules Capital. More…
| Total Revenues | Net Income | Net Margin |
| 184.64 | 102.08 | 55.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hercules Capital. More…
| Operations | Investing | Financing |
| -424.8 | -0.11 | 314.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hercules Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.03k | 1.63k | 10.53 |
Key Ratios Snapshot
Some of the financial key ratios for Hercules Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -8.8% | – | – |
| FCF Margin | ROE | ROA |
| -230.1% | 4.6% | 2.1% |
Stock Price
On Thursday, December 31, 2022, HERCULES CAPITAL, a leading specialty finance company, reported its fourth quarter financial results for fiscal year 2022. The company’s stock opened at $15.0 and closed at $15.1 with no significant change during the course of the trading day. Overall, Hercules Capital reported strong results for the fourth quarter of FY2022. The company’s financial position remains solid and it is well-positioned to continue to capitalize on opportunities and drive future growth. Live Quote…
Analysis – Hercules Capital Intrinsic Value
At GoodWhale, we conducted an analysis of HERCULES CAPITAL‘s fundamentals to determine a fair value of their shares. Our proprietary Valuation Line calculated a fair value of $14.3 for HERCULES CAPITAL’s stock. However, HERCULES CAPITAL’s stock is currently traded at $15.1, a price that is 5.8% higher than the fair value determined by our analysis. This suggests that the stock is overvalued and investors should proceed with caution. More…
Peers
The company’s competitors include Main Street Capital Corp, Horizon Technology Finance Corp, and TriplePoint Venture Growth BDC Corp.
– Main Street Capital Corp ($NYSE:MAIN)
As of 2022, Main Street Capital Corporation’s market cap is 2.81 billion with a return on equity of 9.9%. The company is a provider of long-term debt and equity capital to lower middle market companies and middle market companies. Headquartered in Houston, Texas, Main Street’s investment objective is to maximize total return by generating both income and capital appreciation through investments in a diversified portfolio of privately held companies.
– Horizon Technology Finance Corp ($NASDAQ:HRZN)
Horizon Technology Finance is a business development company that specializes in providing capital to venture capital firms and companies in the technology, life science, healthcare information and services, and cleantech industries. The company’s market cap is $318.04 million as of 2022 and its ROE is 5.84%. Horizon Technology Finance was founded in 1998 and is based in Farmington, Connecticut.
– TriplePoint Venture Growth BDC Corp ($NYSE:TPVG)
TriplePoint Venture Growth BDC Corp has a market cap of $437.98 million as of 2022 and a return on equity of 6.6%. The company is a business development company that provides financing to venture capital-backed companies in the United States.
Summary
Hercules Capital is an attractive investment opportunity due to its impressive fourth quarter FY2022 earnings results. Total revenue increased by 1585.4% year over year, and net income rose by 220.7%. These financials indicate the company’s strong and consistent performance, making it a great investment option for investors seeking long-term returns.
Hercules Capital has also recently diversified its portfolio, making it a more attractive option for risk-averse investors. With its robust financials and prudent diversification strategy, Hercules Capital is an attractive investment option.
