HTGC (Hercules Capital) Beneish M-Score: -1.47 (As of Jun. 25, 2026)


HTGC Hercules Capital Inc HTGC
60 GF Score
Price $15.21
GF Value $18.43
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Hercules Capital Beneish M-Score?

Hercules Capital HTGC +0.36% 60 Beneish M-Score is -1.47 as of Jun. 25, 2026. GuruFocus rates HTGC with a GF Score™ of 60/100 and a GF Value™ of $18.43 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 955 Asset Management companies, Hercules Capital ranks worse than 72.04% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.47 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Hercules Capital's Beneish M-Score or its related term are showing as below:

HTGC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.46   Med: -1.59   Max: 4.8
Current: -1.47

During the past 13 years, the highest Beneish M-Score of Hercules Capital was 4.80. The lowest was -2.46. And the median was -1.59.

HTGC
60GF Score
Hercules Capital Inc HTGC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Hercules Capital Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Hercules Capital for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8743+0.528 * 1+0.404 * 1.0011+0.892 * 1.3954+0.115 * 0.9752
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7016+4.679 * 0.158739-0.327 * 1.07
=-1.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $40.4 Mil.
Revenue was 67.782 + 115.987 + 145.121 + 104.703 = $433.6 Mil.
Gross Profit was 67.782 + 115.987 + 145.121 + 104.703 = $433.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,826.4 Mil.
Property, Plant and Equipment(Net PPE) was $14.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $19.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $2,554.2 Mil.
Net Income was 42.502 + 90.828 + 119.685 + 78.887 = $331.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -230.633 + -55.608 + -3.173 + -144.823 = $-434.2 Mil.
 Total Receivables was $33.1 Mil.
Revenue was 72.707 + 82.251 + 90.425 + 65.338 = $310.7 Mil.
Gross Profit was 72.707 + 82.251 + 90.425 + 65.338 = $310.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,031.2 Mil.
Property, Plant and Equipment(Net PPE) was $16.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.4 Mil.
Selling, General, & Admin. Expense(SGA) was $19.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,993.8 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(40.377 / 433.593) / (33.096 / 310.721)
=0.093122 / 0.106514
=0.8743

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(310.721 / 310.721) / (433.593 / 433.593)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 14.345) / 4826.418) / (1 - (0 + 16.309) / 4031.211)
=0.997028 / 0.995954
=1.0011

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=433.593 / 310.721
=1.3954

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.369 / (0.369 + 16.309)) / (0.333 / (0.333 + 14.345))
=0.022125 / 0.022687
=0.9752

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(19.019 / 433.593) / (19.426 / 310.721)
=0.043864 / 0.062519
=0.7016

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2554.234 + 0) / 4826.418) / ((1993.834 + 0) / 4031.211)
=0.529219 / 0.494599
=1.07

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(331.902 - 0 - -434.237) / 4826.418
=0.158739

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Hercules Capital has a M-score of -1.47 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.47 mean?
Hercules Capital (HTGC) has a Beneish M-Score of -1.47 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hercules Capital and its competitors. According to the industry distribution chart, Hercules Capital ranks #688 out of 955 companies in the Asset Management industry, placing it in the top 72%.
Is Hercules Capital's Beneish M-Score too high?
Hercules Capital's current Beneish M-Score is -1.47. Based on the distribution chart, Hercules Capital ranks #688 out of 955 companies in the Asset Management industry, which is below the industry midpoint. Overall, Hercules Capital has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hercules Capital's Beneish M-Score compare to WT and EXG?
According to the Asset Management industry distribution chart, Hercules Capital ranks #688 out of 955 companies for Beneish M-Score. This places Hercules Capital in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Asset Management company?
A good Beneish M-Score depends on the Asset Management industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Hercules Capital and its competitors. Hercules Capital's current Beneish M-Score is -1.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hercules Capital stock overvalued right now?
Based on GuruFocus' analysis, Hercules Capital (HTGC) is currently considered Modestly Undervalued. The stock's GF Value™ is $18.43, compared to a current price of $15.21 — trading 17.5% below its estimated fair value. The current Beneish M-Score is -1.47. Hercules Capital's overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Hercules Capital (HTGC), the current Beneish M-Score is -1.47 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hercules Capital (HTGC) Overvalued in 2026?

Based on GuruFocus' analysis, Hercules Capital stock appears to be undervalued. The current stock price of $15.21 is trading 17.5% below its estimated GF Value™ of $18.43. GuruFocus considers Hercules Capital to be Modestly Undervalued.

Key valuation signals for HTGC:

  • Beneish M-Score: -1.47
  • GF Value™: $18.43 vs. price of $15.21 (17.5% below fair value)
  • GF Score™: 60/100 with 5 warning signs

No single metric tells the full story. See the HTGC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Hercules Capital Business Description

Other Exchanges 0J4M:UK19H:Germany
Address 1 North B Street, Suite 2000, San Mateo, CA, USA, 94401
Hercules Capital Inc is a specialty finance company focused on providing senior secured loans to high-growth, venture capital-backed, and institutional-backed companies in a variety of technology and life sciences industries. The company's primary business objectives are to increase its net income, net investment income, and net asset value (NAV) through its investments mainly in structured debt or senior secured debt instruments of venture capital-backed and institutional-backed companies across a variety of technology-related industries at attractive yields. It finances companies belonging to computer software and hardware, networking systems, semiconductors, medical devices, bio-pharmaceutical, and other related sectors.
60GF Score

Get the complete analysis for HTGC

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$15.21
Price
$18.43
GF Value