Hercules Capital Inc cash flow to debt ratio of -18.49% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Hercules Capital Inc's free cash flow has decreased 258.51% from $-118.79M last year to $-425.89M, signaling decreasing performance

Hercules Capital Inc's debt to equity ratio is 1.03, which means that the company's assets are unhealthy financed, signaling financial risk.

Hercules Capital Inc's debt has increased relative to shareholder equity from 0.90 last year to 1.03 today, signaling weakened financials

Hercules Capital Inc has a net debt to EBITDA ratio of 6.15x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Hercules Capital Inc earns at least as much interest as it pays. Interest obligations are fully covered.

Hercules Capital Inc's profit margin has increased (8.30%) in the last year from 61.03% to 66.09%, signaling increasing performance

Hercules Capital Inc's short-term assets of $94.14M exceed its short-term liabilities of $65.26M

Hercules Capital Inc's return on assets of 8.17% is higher than the 5.00% threshold, indicating efficient asset utilization

Hercules Capital Inc's return on equity of 17.21%, is higher than 15.00%, indicating good performance

Hercules Capital Inc's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Hercules Capital Inc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Hercules Capital Inc has negative free cash flow, indicating the company is burning cash rather than generating it

Hercules Capital Inc has negative free cash flow, indicating cash burn

Hercules Capital Inc's yearly earnings has increased 29.19% since last year from $262.97M to $339.74M, signaling increasing performance

Hercules Capital Inc's yearly revenue has increased 8.66% since last year from $415.93M to $451.96M, signaling increasing performance

ROIC 9.32% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Hercules Capital Inc's 3-year revenue CAGR of 31.72% is positive, indicating growing revenue over the past 3 years

Hercules Capital Inc had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Hercules Capital Inc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Hercules Capital Inc has insufficient data to evaluate this check.

Hercules Capital Inc has an earnings yield of 8.23%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Hercules Capital Inc is overvalued relative to its fair value price of 5.54 based on EBITDA multiple model

Hercules Capital Inc has an EV/EBITDA ratio of 14.59x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Hercules Capital Inc has insufficient data to evaluate this check.

Hercules Capital Inc's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Hercules Capital Inc has a price-to-book ratio of 2.05x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Hercules Capital Inc has a price-to-sales ratio of 8.03x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue