Hercules Capital Inc. 6.25% Notes due 2033 (HCXY)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at this not as an equity but as a credit instrument. HCXY is Hercules Capital's 6.25% note due 2033, priced at $24.17 on 2026-10-13. The coupon is fixed, so the main question is whether the issuer can keep paying. The filed numbers show the issuer has been profitable: net income was $339.7M and diluted EPS $1.85 in FY2025 (period ended 2025-12-31), after $263.0M and $1.61 in FY2024 (period ended 2024-12-31). That is an improvement, but not a straight line. FY2023 (period ended 2023-12-31) was $337.5M and $2.31. Fiscal Q1 2026 (quarter ended 2026-03-31) was softer at $42.5M and $0.23, then fiscal Q2 2026 (quarter ended 2026-06-30) rebounded to $130.2M and $0.67. FairStock calls it a stalwart with 8.4% annual profit growth over five years, which is respectable. But I don't see a wide moat; financial services lending is competitive, and the data provided lacks revenue, ROE, debt-to-equity, and book value. The FairStock Score is 31/100, and the FairStock-calculated P/E was 19.03 at the 2026-10-13 close. For a note, the P/E is not the key metric, but it does not scream bargain. The price sits inside the 52-week range of $23.52 to $25.71, so it is not deeply discounted. The 6.25% coupon offers income, but the margin of safety depends on credit quality that is not fully visible in these figures. I would want to see steady earnings and asset coverage before calling it comfortable. It is a fair-looking fixed-income instrument with a modest cushion, not a fat pitch.

In plain English: Hercules Capital Inc. 6.25% Notes due 2033 are debt securities that pay fixed interest and aim to return the face amount in 2033. The company has reported profits in recent years, but earnings bounce around, and an outside scoring system gives it a low score. At $24.17, near the middle of its 52-week range of $23.52 to $25.71, the price looks fair rather than cheap or expensive based on the data given.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer