Tekla Healthcare Investors (HQH) AI Stock Analysis
HQH AI stock analysis summary
AI ResearchTekla Healthcare Investors (HQH) is a closed-end healthcare fund specializing in biotechnology, medical devices, and pharmaceuticals. The fund trades at a trailing price-to-earnings ratio of 4.2x with an enterprise value of $1.06B. It offers a forward dividend yield of 13.01% with 37 consecutive years of payments.
- Market cap
- $1.09B
- Revenue (TTM)
- $5.5M
- P/E
- 4.2x
- 1Y return
- 12.5% S&P 500 16.8%
- Avg. target
- —
Bull case
- The fund pays an annual forward dividend of $2.47 per share, generating a 13.01% yield with a 37-year payment record.
- HQH trades at a trailing price-to-earnings ratio of 4.2x, compared to the 12.1x median for US-listed Financial Services peers.
- The fund delivered $98.6M in net income for FY2025, reflecting a significant rebound from -$194.2M in FY2022.
Bear case
- Revenue generated a 5-year compound annual growth rate of -16.3% between FY2020 and FY2025.
- The fund's 5-year return of 27.5% lagged behind the S&P 500 return of 83.0%.
- Diluted share count grew 23.8% over the past 5 years, diluting existing holdings.
What Tekla Healthcare Investors does
Tekla Healthcare Investors operates as a closed-ended equity mutual fund managed by Tekla Capital Management LLC. Established in 1986, the fund invests globally across the healthcare sector, focusing primarily on biotechnology, medical devices, and pharmaceutical companies. It targets small-cap growth stocks demonstrating potential for market leadership and technological innovation. The fund uses fundamental analysis to assess competitive positions, management expertise, technological advancements, and growth financing. It benchmarks performance against the NASDAQ Biotechnology Index, the S&P 500 Index, and the S&P 1500 Healthcare Index.
Growth and profitability
HQH experiences wide performance fluctuations typical of investment funds. In FY2025, revenue increased 826.8% to $99.8M, recovering from $10.8M in FY2024 and -$192.3M in FY2022. FY2025 net income reached $98.6M with diluted earnings per share of $1.64. Over the 5-year period from FY2020 to FY2025, revenue posted a compound annual growth rate of -16.3%. In the trailing twelve months, revenue was $5.5M with diluted earnings per share of $4.47, while quarterly revenue fell 42.1% year-over-year in the quarter ended September 30, 2025.
Balance sheet and cash flow
As of March 31, 2026, Tekla Healthcare Investors reported total assets of $1.14B and shareholders' equity of $1.14B. The fund maintains a market capitalization of $1.09B against an enterprise value of $1.06B. Over the past 5 years, the fund's share count expanded by 23.8%.
Valuation and performance
At its last close of $18.98 on October 16, 2026, HQH traded at a trailing price-to-earnings multiple of 4.2x, below the 12.1x median of its US-listed Financial Services peers. Its price-to-sales ratio was 5.5x compared to the peer group median of 3.2x, while price-to-book stood at 1.1x. Over the past year, the stock returned 12.5% compared to a 16.8% return for the S&P 500 (SPY), and its 5-year return of 27.5% trailed the S&P 500's 83.0% gain.
HQH dividend
HQH pays a quarterly dividend with an annual forward payout of $2.47 per share, representing a dividend yield of 13.01%. The fund has paid dividends for 37 consecutive years, delivering a 5-year annualized dividend growth rate of 2.9%. Its payout ratio stands at 81.5%, and the last ex-dividend date was August 24, 2026.
What analysts expect
Tekla Healthcare Investors surpassed quarterly consensus earnings per share estimates in 2 of the last 4 reported quarters. The fund exhibits a beta of 0.75 and institutional ownership of 23.6%, while insider ownership is reported at 0.0%.
Key risks and what to watch
- Quarterly revenue fell 42.1% year-over-year in the latest quarter ending September 30, 2025.
- Operating margin over the trailing twelve months was -125.5%, highlighting high earnings volatility.
- The fund's 52-week low of $17.14 sits close to its last close of $18.98, trading 2.3% below its 200-day moving average.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this HQH AI stock analysis
This page is an AI-written research summary of Tekla Healthcare Investors (HQH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: HQH income statement, HQH balance sheet, HQH key metrics, HQH chart. See the HQH stock overview for the latest quote and news.
HQH AI stock analysis FAQ
What dividend does HQH pay?
HQH pays an annual forward dividend of $2.47 per share on a quarterly schedule, resulting in a dividend yield of 13.01% as of October 16, 2026.
What is HQH's trailing price-to-earnings ratio?
The fund trades at a trailing P/E ratio of 4.2x, compared to the median of 12.1x for its US-listed Financial Services peers.
How has HQH performed relative to the S&P 500?
Over the 1-year period, HQH returned 12.5% versus 16.8% for the S&P 500. Over 5 years, HQH gained 27.5% compared to 83.0% for the index.
What assets does Tekla Healthcare Investors hold?
As of March 31, 2026, HQH reported total assets of $1.14B, which are invested primarily in healthcare, biotechnology, medical devices, and pharmaceutical equities.