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 12.03%, 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 1.70 based on EBITDA multiple model

Hercules Capital, Inc. has an EV/EBITDA ratio of 14.94x, 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 1.40x, 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 5.49x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue