The internally managed, non-diversified closed-end investment company reported a 15.5% increase in total investment income for the most recent quarter to $35.8 million from $31.0 million in the 2013 first quarter.
Net investment income increased 22.0% to $18.3 million, or 30 cents per share, compared to $15.0 million, or 27 cents per share from the year ago quarter.
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First quarter 2014 distributable net operating income increased 22.8% to $19.9 million, or 33 cents per share versus $16.2 million, or 30 cents per share from the 2013 first quarter.
TheStreet Ratings team rates HERCULES TECH GROWTH CAP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERCULES TECH GROWTH CAP INC (HTGC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 21.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Capital Markets industry and the overall market, HERCULES TECH GROWTH CAP INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for HERCULES TECH GROWTH CAP INC is currently very high, coming in at 91.53%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 74.96% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 193.92% to $98.94 million when compared to the same quarter last year. In addition, HERCULES TECH GROWTH CAP INC has also vastly surpassed the industry average cash flow growth rate of 96.60%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: HTGC Ratings Report