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Hercules Capital

HTGC
61
Asset Management · Financial Services
Also trades as: 0J4M.L GBP 0.16 (-0.67%)
Price
$16.41
-0.08 (-0.49%)
Market Cap
$3.07B
Exchange
New York Stock Exchange
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 24, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
23/30
Growth
Strong
15/20
Cash Flow
Weak
1/10
Stability
Good
5/10
Valuation
Good
6/10
Ownership
Good
8/15
Dividends
Good
3/5

61 of 100 counted points = Winston Score 61.

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Share count rising — dilution

+68.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 116.0M (2021) → 194.8M (2025)

§Winston Score History

The full picture

Hercules Capital is a specialty finance company that lends money to startups and fast-growing technology, life sciences, and healthcare companies. Instead of taking ownership stakes like a venture capital firm, Hercules provides loans — giving young companies cash while they grow toward an IPO or acquisition. It is one of the largest venture lenders in the United States, structured as a Business Development Company (BDC).

Hercules makes money by charging interest on the loans it makes, typically at floating rates, which means payments rise when interest rates go up. It operates almost entirely in the United States, focusing on venture-backed companies that have already raised funding from well-known investors. Its main competitive edge is deep relationships with top-tier venture capital firms, which feed it a steady stream of borrowers. The key risk is credit losses — if too many borrowers fail before repaying their loans, earnings and dividends can fall sharply.

Politician Trades

2 trades / 12mo

1 Congressional buy and 1 sell on HTGC in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+22.9% YoY

YoY Growth Rate

Steady revenue growth

Reported EPS Growth

+59.1% YoY

Quarterly reporting periods ended:

30 Jun 2025: $0.44

30 Jun 2026: $0.70

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

8.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$4.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Hercules Capital is a rare growth stock that's already generating positive cash flow while growing at 23%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
98.0%
Premium pricing power — 98.0% gross margin
Profit after running costs
Operating Margin
101.0%
Excellent — 101.0% operating margin
Return on the money invested
ROCE
9.4%
Below par — 9.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+33.9%
Fast-growing sales (+33.9% YoY)
Profit growth
EPS YoY
+37.5%
Earnings growing fast (+37.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
2%
Weak — only 2% of profit becomes cash
Spare cash per sale
FCF Margin
1.5%
Thin free cash flow (1.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.03
Elevated debt (1.03)
Covers its interest
Interest Cover
4.13x
Adequate interest coverage (4.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
7.9x
Attractive valuation — P/E 7.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-0.7
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
11.23%
Healthy income — 11.23% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
-3.9%
Dividend cut (-3.9% YoY) — warning sign
Payout Ratio
88%
no trend
Most of the profit goes out as dividends. Little left to reinvest, and less cushion if earnings dip.

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