Hercules Capital Stock Fair Value – HERCULES CAPITAL Reports Strong Second Quarter Earnings for FY2023
August 24, 2023
☀️Earnings Overview
Hercules Capital ($NYSE:HTGC) released its earnings report for the second quarter of fiscal year 2023 on June 30th, 2023. Total revenue had increased significantly from the 9.0 million reported in the corresponding quarter of the previous year, to 118.1 million in the current quarter. Net income also saw a substantial jump from the -10.3 million reported in the same period of the previous year to 94.8 million in the current quarter.
Market Price
This positive result is a strong indication of the company’s financial health and investor confidence in the venture debt specialist. HERCULES CAPITAL specializes in providing venture debt capital to technology, life science, and sustainable and renewable technology companies. It has also had much success in providing growth capital to other companies. This quarter’s strong earnings further validate the company’s commitment to providing comprehensive financial solutions to its clients, while also creating strong returns for investors. This quarter’s results mark a continuation of the company’s positive performance for the year, with strong earnings reported in the first quarter as well.
HERCULES CAPITAL has also seen an increase in new investments, which demonstrates a growing interest in the venture debt industry. The company has proven that it is well-placed to capitalize on this growth in the coming quarters. This is an encouraging sign for current investors and potential investors alike and bodes well for the future of the venture debt specialist. Live Quote…
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 |
| 393.25 | 305.07 | 77.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hercules Capital. More…
| Operations | Investing | Financing |
| -65.33 | -0.42 | 21.1 |
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 |
| 3.22k | 1.64k | 10.96 |
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 |
| 33.6% | – | – |
| FCF Margin | ROE | ROA |
| -16.7% | 12.4% | 5.9% |
Analysis – Hercules Capital Stock Fair Value
At GoodWhale, our team has worked hard to analyze the financials of HERCULES CAPITAL. Using our proprietary Valuation Line, we have determined that the intrinsic value of HERCULES CAPITAL share is around $20.8. At the current market price of $17.1, we believe that the stock is undervalued by 17.9%. For investors who are looking to add this stock to their portfolio, now may be a good time to buy as it is trading at a fair price. More…
Peers
The company’s competitors include Main Street Capital Corp, Horizon Technology Finance Corp, and TriplePoint Venture Growth BDC Corp.
– Main Street Capital Corp ($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 has seen an impressive increase in their second quarter FY2023 earnings. Revenue tripled from the same quarter last year, earning USD 118.1 million. Net income also significantly rose, totaling USD 94.8 million.
As a result, investors should take note of Hercules Capital’s strong financial performance and consider the potential of investing in the company. Analysts suggest that it may be a good opportunity for growth and should be watched closely.
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