Hercules Capital HTGC
Hercules Capital is a Business Development Company (BDC) that provides debt and equity financing to growth-stage technology and life sciences companies, generating interest and fee income. HTGC presents solid financial health (7.72) and exceptional quality (9.78), with a very attractive dividend (8.97) and notable earnings growth (7.6). Valuation is reasonable (7.64) and momentum is neutral (5.12). The main risk is sensitivity to interest rates, which could compress the net interest margin.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Hercules Capital is a Business Development Company (BDC) that provides debt and equity financing to growth-stage technology and life sciences companies, generating interest and fee income. HTGC presents solid financial health (7.72) and exceptional quality (9.78), with a very attractive dividend (8.97) and notable earnings growth (7.6). Valuation is reasonable (7.64) and momentum is neutral (5.12). The main risk is sensitivity to interest rates, which could compress the net interest margin.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.4 |
| Quality / Moat | 9.8 |
| Valuation | 7.6 |
| Growth | 7.6 |
| Dividend | 9.0 |
| Momentum | 5.1 |
| Risk & Context | 7.0 |
OVERALL SCORE: 7.9/10
Context and risks
As a BDC, HTGC is sensitive to interest rates. The rise in the 10-year Treasury yield to 5.17% makes its funding more expensive and could compress the net interest margin, although its cost of debt is largely variable and benefits from higher rates on its loan portfolio. The risk is more acute due to the duration of its assets and the cost of its unhedged debt.
News considered in the analysis
- How to Build $9,150 a Month in Dividend Income Without Selling a Single Share — Listículo genérico sobre ingresos por dividendos sin información específica de la empresa.
- Is It Worth Investing in Hercules Capital (HTGC) Based on Wall Street's Bullish Views? — Opinión de analistas sin información nueva o concreta sobre la empresa.
- Hercules Capital (HTGC) Dips More Than Broader Market: What You Should Know — Titular de movimiento de mercado a corto plazo sin información fundamental nueva.
- Here's Why Hercules Capital (HTGC) Fell More Than Broader Market — Explicación genérica de la caída sin detalles específicos o materialess.
- How Large Does Your Portfolio Need to Be to Generate $7,050 a Month Without Selling a Single Share? — Listículo genérico sobre ingresos por dividendos sin información específica de la empresa.
Verdict: Hold. The dividend is attractive and quality is high, but sensitivity to interest rates and weak momentum limit upside potential.
Main risk: The main risk is sensitivity to interest rates: the rise in the 10-year Treasury yield to 5.17% (+0.51 in the month) makes the BDC's funding more expensive and could compress its net interest margin.
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