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HRZN

Horizon Technology FinanceNasdaqGS:HRZN Stock Report

Last Price

US$15.87

Market Cap

US$324.2m

7D

-3.1%

1Y

17.1%

Updated

19 Jan, 2022

Data

Company Financials +
HRZN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends4/6

HRZN Stock Overview

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments.

Horizon Technology Finance Competitors

Ares Capital

NasdaqGS:ARCC

US$9.9b

Prospect Capital

NasdaqGS:PSEC

US$3.5b

Golub Capital BDC

NasdaqGS:GBDC

US$2.7b

Hercules Capital

NYSE:HTGC

US$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Horizon Technology Finance
Historical stock prices
Current Share PriceUS$15.87
52 Week HighUS$19.08
52 Week LowUS$12.23
Beta1.08
1 Month Change2.52%
3 Month Change-7.73%
1 Year Change17.12%
3 Year Change37.88%
5 Year Change43.75%
Change since IPO1.80%

Recent News & Updates

Nov 16

Horizon Technology Finance: Strong Results And Dividend, But On The Expensive Side

HRZN recently reported positive Q3 results. They also announced a special dividend. This BDC currently yields 6.88%, so the special is a bonus to an already high yield. Despite these solid results, HRZN is trading at quite a high valuation at this time.

Oct 13

Horizon Technology Finance: Income From Venture Growth, But At A Steep Premium

Horizon Technology Finance continues to grow its loan portfolio to venture-stage clients, with a record value of new loans closed in Q3. It has managed to reduce its own cost of capital as it rolled over debt and raised funds through its ATM as the shares have moved up. The market has valued the shares with a top-notch premium, currently more than 50% higher than its NAV.

Aug 01

7% Yield: Horizon Technology Finance Pays You Monthly With No Non-Accruals

Horizon Technology Finance is just one of a few BDCs that invests in the attractive technology and life science space. It generates a higher portfolio yield than most BDCs and is seeing an improving NAV/share. I also highlight the dividend, balance sheet, valuation, and make a recommendation.

Jun 09

Horizon Technology Finance appoints operations chief

Horizon Technology Finance (HRZN) appoints Daniel S. Devorsetz as COO effective immediately.Additionally, Devorsetz has concurrently been appointed as COO of company's external investment advisor, Horizon Technology Finance Management.He joined HTFM in 2004 as VP, Credit, responsible for credit underwriting and portfolio management.Press Release

Apr 27

7.5%-Yielding Horizon Technology Finance: This Monthly Payer Generates High Debt Yields

Photo by Olivier Le Moal/iStock via Getty ImagesHorizon Technology Finance (HRZN) has been a solid performer since my last bullish take on it, returning 38% since November, far surpassing the 17% return of the S&P 500 (SPY) over the same timeframe. In this article, I evaluate the company, and determine

Shareholder Returns

HRZNUS Capital MarketsUS Market
7D-3.1%-5.5%-4.6%
1Y17.1%24.6%7.7%

Return vs Industry: HRZN underperformed the US Capital Markets industry which returned 25.7% over the past year.

Return vs Market: HRZN exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is HRZN's price volatile compared to industry and market?
HRZN volatility
HRZN Average Weekly Movement3.1%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: HRZN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HRZN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008n/aRob Pomeroy

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, and cleantech industries. It seeks to invest in companies in the United States.

Horizon Technology Finance Fundamentals Summary

How do Horizon Technology Finance's earnings and revenue compare to its market cap?
HRZN fundamental statistics
Market CapUS$324.18m
Earnings (TTM)US$27.91m
Revenue (TTM)US$53.14m

11.6x

P/E Ratio

6.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRZN income statement (TTM)
RevenueUS$53.14m
Cost of RevenueUS$0
Gross ProfitUS$53.14m
ExpensesUS$25.22m
EarningsUS$27.91m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.37
Gross Margin100.00%
Net Profit Margin52.53%
Debt/Equity Ratio108.5%

How did HRZN perform over the long term?

See historical performance and comparison

Dividends

7.6%

Current Dividend Yield

84%

Payout Ratio

Does HRZN pay a reliable dividends?

See HRZN dividend history and benchmarks
When do you need to buy HRZN by to receive an upcoming dividend?
Horizon Technology Finance dividend dates
Ex Dividend DateFeb 17 2022
Dividend Pay DateMar 16 2022
Days until Ex dividend28 days
Days until Dividend pay date55 days

Does HRZN pay a reliable dividends?

See HRZN dividend history and benchmarks

Valuation

Is Horizon Technology Finance undervalued compared to its fair value and its price relative to the market?

11.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HRZN ($15.87) is trading above our estimate of fair value ($11.52)

Significantly Below Fair Value: HRZN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HRZN is good value based on its PE Ratio (11.6x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: HRZN is good value based on its PE Ratio (11.6x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: HRZN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HRZN is good value based on its PB Ratio (1.4x) compared to the US Capital Markets industry average (42.2x).

Future Growth

How is Horizon Technology Finance forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRZN's earnings are forecast to decline over the next 3 years (-2.7% per year).

Earnings vs Market: HRZN's earnings are forecast to decline over the next 3 years (-2.7% per year).

High Growth Earnings: HRZN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HRZN's revenue (8.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HRZN's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HRZN's Return on Equity is forecast to be low in 3 years time (11.7%).

Past Performance

How has Horizon Technology Finance performed over the past 5 years?

34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRZN has a high level of non-cash earnings.

Growing Profit Margin: HRZN's current net profit margins (52.5%) are higher than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: HRZN has become profitable over the past 5 years, growing earnings by 34.8% per year.

Accelerating Growth: HRZN's earnings growth over the past year (161%) exceeds its 5-year average (34.8% per year).

Earnings vs Industry: HRZN earnings growth over the past year (161%) exceeded the Capital Markets industry 86.4%.


Return on Equity

High ROE: HRZN's Return on Equity (11.7%) is considered low.

Financial Health

How is Horizon Technology Finance's financial position?


Financial Position Analysis

Short Term Liabilities: HRZN's short term assets ($28.7M) exceed its short term liabilities ($10.3M).

Long Term Liabilities: HRZN's short term assets ($28.7M) do not cover its long term liabilities ($257.9M).


Debt to Equity History and Analysis

Debt Level: HRZN's net debt to equity ratio (99.8%) is considered high.

Reducing Debt: HRZN's debt to equity ratio has increased from 66.5% to 108.5% over the past 5 years.

Debt Coverage: HRZN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HRZN's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Dividend

What is Horizon Technology Finance current dividend yield, its reliability and sustainability?

7.56%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 20 2022Ex Dividend DateFeb 17 2022Dividend Pay DateMar 16 202227 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HRZN's dividend (7.56%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HRZN's dividend (7.56%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

Stable Dividend: HRZN's dividend payments have been volatile in the past 10 years.

Growing Dividend: HRZN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.1%), HRZN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRZN's dividends in 3 years are forecast to be covered by earnings (83.8% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Rob Pomeroy (70 yo)

11.83yrs

Tenure

Mr. Robert D. Pomeroy, Jr., also known as Rob, serves as the Managing Member, since May 2003; Chief Executive Officer since March 2010 and Chairman of Horizon Technology Finance Management, LLC. He served...


Leadership Team

Experienced Management: HRZN's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: HRZN's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HRZN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.


Top Shareholders

Company Information

Horizon Technology Finance Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Horizon Technology Finance Corporation
  • Ticker: HRZN
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$324.180m
  • Shares outstanding: 20.43m

Location

  • Horizon Technology Finance Corporation
  • 312 Farmington Avenue
  • Farmington
  • Connecticut
  • 6032
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:46
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.