HCXY

Based on Hercules Capital, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

What does Hercules Capital do?

Hercules Capital is a business development company that provides venture debt, senior secured loans, and growth capital to privately held, venture-backed companies. It serves businesses from the startup stage through expansion and into pre-IPO phases, earning income primarily through interest and fees rather than equity ownership.

Does HCXY pay dividends?

Yes, Hercules Capital pays a regular dividend. As a BDC, it is required by regulation to distribute the large majority of its taxable income to shareholders, making dividend payments a structural feature of the business rather than a discretionary choice. Income-oriented investors often consider BDCs for this reason.

When does HCXY report earnings?

Hercules Capital reports on a quarterly cadence, as is standard for US-listed companies. Specific dates are not covered by our data source — check the company's investor relations page for the current reporting schedule.

Is HCXY a good stock to buy?

UQS Score rates HCXY as Good overall. Quality and Valuation both register positively, while Growth and Risk are Neutral. The Moat pillar is Weak, reflecting competitive pressures in venture lending. Whether HCXY fits your portfolio depends on your income needs, risk tolerance, and view of the venture capital cycle.

Is HCXY overvalued?

The UQS Valuation pillar for HCXY is rated Good, suggesting the current price appears reasonable relative to fundamentals rather than stretched. Full valuation metrics are available to UQS Pro members for a deeper look.

How does HCXY compare to its competitors?

Among the comparable names tracked by UQS, Golub Capital BDC is the closest structural peer, also operating as a BDC focused on senior secured lending. Cohen & Steers and Brookfield Business Corporation serve different market segments. The full side-by-side UQS pillar comparison is available on each company's score page.

What is HCXY's market cap bracket?

Hercules Capital falls in the mid-cap bracket. This places it in a range where institutional coverage exists but the stock may receive less attention than large- or mega-cap financial services names, which can create both opportunity and liquidity considerations for investors.

Who founded Hercules Capital?

Hercules Capital was established in 2018 and is headquartered in San Mateo, California. Detailed founding history and leadership background are publicly available on the company's investor relations and about pages.

Is HCXY a long-term quality investment?

UQS Score assesses long-term quality through five pillars rather than short-term price signals. HCXY's Good overall rating, supported by Good Quality and Valuation scores, suggests a reasonable fundamental foundation. The Weak Moat rating is worth monitoring, as durable competitive advantage is a key driver of long-term value creation in lending businesses.

What is the main competitive advantage of Hercules Capital?

Hercules Capital's primary differentiation lies in its deep specialization in venture-stage debt — a niche that requires underwriting expertise most traditional banks lack. However, the UQS Moat pillar rates this advantage as Weak, reflecting that other BDCs and non-bank lenders actively compete for the same borrowers.

What sector does HCXY belong to?

HCXY is classified in the Financial Services sector, specifically as a business development company. BDCs occupy a unique regulatory structure that blends elements of private credit, closed-end funds, and specialty finance — making sector comparisons with traditional banks or asset managers imperfect.

Is HCXY a growth stock or value stock?

Based on UQS pillar labels, HCXY leans toward an income and value profile. The Growth pillar is Neutral, indicating the business is not expanding at an above-average pace, while the Valuation pillar is Good — suggesting the price reflects fundamentals rather than high-growth expectations. It may appeal more to income-focused investors than pure growth seekers.

Hercules Capital, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Hercules Capital, Inc. demonstrates healthy growth trends across revenue and earnings.

Hercules Capital, Inc. presents elevated risk with concerns around leverage or financial stability.

Hercules Capital, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Hercules Capital, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for HCXY.

The UQS (Unified Quality Score) for Hercules Capital, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Hercules Capital, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Hercules Capital, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.