Hercules Capital Debt To Equity vs. Price To Earning
| HCXY Stock | USD 25.02 0.03 0.12% |
Debt To Equity | First Reported 2010-12-31 | Previous Quarter 0.92066982 | Current Value 0.55 | Quarterly Volatility 0.30834084 |
| 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.
Dividend Share 1.24 |
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 Price To Earning vs. Debt To Equity 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 one of the top stocks in debt to equity category among its peers. It also is one of the top stocks in price to earning category among its peers reporting about 0.21 of Price To Earning per Debt To Equity. The ratio of Debt To Equity to Price To Earning for Hercules Capital is roughly 4.76 . At this time, Hercules Capital's Debt To Equity is fairly stable compared to the past year. 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 Price To Earning vs. Debt To Equity
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Hercules Capital |
| = | 83.40 % |
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Hercules Capital |
| = | 17.51 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Hercules Price To Earning Comparison
Hercules Capital is currently under evaluation in price to earning 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 | |
| Income Tax Expense | -190 K | -199.5 K | |
| Net Income From Continuing Ops | 117.4 M | 80.1 M | |
| Net Income Applicable To Common Shares | 117.4 M | 95.6 M | |
| Interest Income | 34.9 M | 31.3 M | |
| Non Operating Income Net Other | -76.6 M | -80.4 M | |
| Change To Netincome | 12.5 M | 13.1 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 Utilities ETFs Thematic Idea Now
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Utilities ETFs theme has 13 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 Utilities ETFs Theme or any other thematic opportunities.
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Additional Tools for Hercules Stock Analysis
When running Hercules Capital's price analysis, check to measure Hercules Capital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hercules Capital is operating at the current time. Most of Hercules Capital's value examination focuses on studying past and present price action to predict the probability of Hercules Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hercules Capital's price. Additionally, you may evaluate how the addition of Hercules Capital to your portfolios can decrease your overall portfolio volatility.