Hercules Capital EBITDA vs. Cash And Equivalents
| HTGC Stock | USD 18.93 0.04 0.21% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 405.3 M | Current Value 425.6 M | Quarterly Volatility 122.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Profit Margin | 0.5 | 0.7769 |
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| Operating Profit Margin | 0.85 | 0.8922 |
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| Pretax Profit Margin | 0.49 | 0.7769 |
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For Hercules Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hercules Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hercules Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hercules Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hercules Capital over time as well as its relative position and ranking within its peers.
Hercules |
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hercules Capital. If investors know Hercules will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hercules Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.261 | Dividend Share 1.6 | Earnings Share 2.04 | Revenue Per Share 3.13 | Quarterly Revenue Growth 0.073 |
The market value of Hercules Capital is measured differently than its book value, which is the value of Hercules that is recorded on the company's balance sheet. Investors also form their own opinion of Hercules Capital's value that differs from its market value or its book value, called intrinsic value, which is Hercules Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hercules Capital's market value can be influenced by many factors that don't directly affect Hercules Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hercules Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hercules Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hercules Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Hercules Capital Cash And Equivalents vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hercules Capital's current stock value. Our valuation model uses many indicators to compare Hercules Capital value to that of its competitors to determine the firm's financial worth. Hercules Capital is rated # 5 in ebitda category among its peers. It is rated # 4 in cash and equivalents category among its peers creating about 0.28 of Cash And Equivalents per EBITDA. The ratio of EBITDA to Cash And Equivalents for Hercules Capital is roughly 3.51 . At present, Hercules Capital's EBITDA is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hercules Capital's earnings, one of the primary drivers of an investment's value.Hercules Cash And Equivalents vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Hercules Capital |
| = | 405.29 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Hercules Capital |
| = | 115.31 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Hercules Cash And Equivalents Comparison
Hercules Capital is currently under evaluation in cash and equivalents category among its peers.
Hercules Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hercules Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hercules Capital will eventually generate negative long term returns. The profitability progress is the general direction of Hercules Capital's change in net profit over the period of time. It can combine multiple indicators of Hercules Capital, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 6.2 M | 6.5 M | |
| Operating Income | 387.6 M | 368.2 M | |
| Income Before Tax | 337.5 M | 354.4 M | |
| Net Income | 337.5 M | 354.4 M | |
| Total Other Income Expense Net | -50.1 M | -52.6 M | |
| Net Income Applicable To Common Shares | 117.4 M | 79.3 M | |
| Income Tax Expense | -190 K | -199.5 K | |
| Net Income From Continuing Ops | 279.8 M | 142.5 M | |
| Interest Income | 414.1 M | 249.1 M | |
| Net Interest Income | 347.9 M | 220.1 M | |
| Non Operating Income Net Other | -76.6 M | -80.4 M | |
| Change To Netincome | 9.7 M | 10.2 M | |
| Net Income Per Share | 2.34 | 2.46 | |
| Income Quality | 0.20 | 0.21 | |
| Net Income Per E B T | 1.38 | 0.92 |
Hercules Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hercules Capital. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hercules Capital position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hercules Capital's important profitability drivers and their relationship over time.
Use Hercules Capital in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hercules Capital position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hercules Capital will appreciate offsetting losses from the drop in the long position's value.Hercules Capital Pair Trading
Hercules Capital Pair Trading Analysis
The ability to find closely correlated positions to Hercules Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hercules Capital when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hercules Capital - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hercules Capital to buy it.
The correlation of Hercules Capital is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hercules Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hercules Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hercules Capital can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Hercules Capital position
In addition to having Hercules Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Beer and Liquor Thematic Idea Now
Beer and Liquor
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 32 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Beer and Liquor Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis. For information on how to trade Hercules Stock refer to our How to Trade Hercules Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Hercules Capital's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Hercules Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Hercules Capital's income statement, its balance sheet, and the statement of cash flows.