📊 HCXY Key Takeaways
Is Hercules Capital, Inc. (HCXY) a Good Investment?
Despite strong net profit margins (66.9%) and decent return metrics, Hercules Capital faces critical cash flow deterioration with -$425.8M operating cash burn and net income growth of only 0.8%, indicating poor earnings quality. The combination of significant leverage (1.03x Debt/Equity), minimal cash reserves ($56.9M against $2.4B liabilities), and stagnant earnings growth raises sustainability concerns.
Hercules Capital delivers resilient profitability with a 66.9% net margin, solid 15.3% ROE, and double‑digit EPS growth despite modest net income growth. Leverage at ~1.0x D/E appears prudent for a lender, and negative operating cash flow largely reflects portfolio growth typical for BDCs rather than operating weakness. If credit quality remains stable and funding costs are managed, earnings power should remain durable.
Hercules Capital, Inc. Key Strengths (HCXY)
- Exceptional net profit margin of 66.9% indicating efficient investment operations
- Solid return metrics with ROE of 15.3% and ROA of 7.4%
- Modest revenue growth of 8.7% year-over-year demonstrating ongoing business activity
- High net margin and solid ROE indicating efficient income generation
- Healthy revenue growth with double-digit EPS expansion
- Moderate leverage (1.03x D/E) and strong equity base supporting portfolio scale
HCXY Stock Risks: Hercules Capital, Inc. Investment Risks
- Critical negative operating cash flow of -$425.8M with FCF margin of -83.9%, indicating unsustainable cash burn
- Stagnant net income growth of only 0.8% YoY combined with minimal cash position ($56.9M) relative to $2.4B liabilities
- Elevated leverage ratio of 1.03x Debt/Equity amplifies financial risk, particularly concerning given negative cash generation
- Credit deterioration/non-accruals could pressure income and NAV
- Rising funding costs may compress net interest spread
- Fair value marks and capital markets dependence can add NAV/earnings volatility
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Net income growth acceleration and earnings quality
- Debt reduction progress and leverage ratio improvement
- Non-accrual rate
- Net interest spread
Hercules Capital, Inc. (HCXY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HCXY Profit Margin, ROE & Profitability Analysis
HCXY vs Market Sector: How Hercules Capital, Inc. Compares
How Hercules Capital, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hercules Capital, Inc. Stock Overvalued? HCXY Valuation Analysis 2026
Based on fundamental analysis, Hercules Capital, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hercules Capital, Inc. Balance Sheet: HCXY Debt, Cash & Liquidity
HCXY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hercules Capital, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.31 reflects profitable operations.
HCXY Revenue Growth, EPS Growth & YoY Performance
Hercules Capital, Inc. Dividends, Buybacks & Capital Allocation
HCXY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hercules Capital, Inc. (CIK: 0001280784)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HCXY
What is the AI rating for HCXY?
Hercules Capital, Inc. (HCXY) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HCXY's key strengths?
Claude: Exceptional net profit margin of 66.9% indicating efficient investment operations. Solid return metrics with ROE of 15.3% and ROA of 7.4%. ChatGPT: High net margin and solid ROE indicating efficient income generation. Healthy revenue growth with double-digit EPS expansion.
What are the risks of investing in HCXY?
Claude: Critical negative operating cash flow of -$425.8M with FCF margin of -83.9%, indicating unsustainable cash burn. Stagnant net income growth of only 0.8% YoY combined with minimal cash position ($56.9M) relative to $2.4B liabilities. ChatGPT: Credit deterioration/non-accruals could pressure income and NAV. Rising funding costs may compress net interest spread.
What is HCXY's revenue and growth?
Hercules Capital, Inc. reported revenue of $507.9M.
Does HCXY pay dividends?
Hercules Capital, Inc. pays dividends, with $326.0M distributed to shareholders in the trailing twelve months.
Where can I find HCXY SEC filings?
Official SEC filings for Hercules Capital, Inc. (CIK: 0001280784) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HCXY's EPS?
Hercules Capital, Inc. has a diluted EPS of $1.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is HCXY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Hercules Capital, Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HCXY stock overvalued or undervalued?
Valuation metrics for HCXY: ROE of 15.3% (sector avg: 15%), net margin of 66.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is HCXY's AI grade for 2026?
Our dual AI analysis gives Hercules Capital, Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HCXY's free cash flow?
Hercules Capital, Inc.'s operating cash flow is $-425.8M, with capital expenditures of $89.0K. FCF margin is -83.9%.
How does HCXY compare to other Market stocks?
Vs Default sector averages: Net margin 66.9% (avg: 12%), ROE 15.3% (avg: 15%), current ratio N/A (avg: 1.8).