| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$15.87 |
| 52 Week High | US$19.08 |
| 52 Week Low | US$12.23 |
| Beta | 1.08 |
| 1 Month Change | 2.52% |
| 3 Month Change | -7.73% |
| 1 Year Change | 17.12% |
| 3 Year Change | 37.88% |
| 5 Year Change | 43.75% |
| Change since IPO | 1.80% |
Recent News & Updates
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.
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.
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.
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
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
| HRZN | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -3.1% | -5.5% | -4.6% |
| 1Y | 17.1% | 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
| HRZN volatility | |
|---|---|
| HRZN Average Weekly Movement | 3.1% |
| Capital Markets Industry Average Movement | 0.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2008 | n/a | Rob 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
| HRZN fundamental statistics | |
|---|---|
| Market Cap | US$324.18m |
| Earnings (TTM) | US$27.91m |
| Revenue (TTM) | US$53.14m |
11.6x
P/E Ratio6.1x
P/S RatioIs HRZN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HRZN income statement (TTM) | |
|---|---|
| Revenue | US$53.14m |
| Cost of Revenue | US$0 |
| Gross Profit | US$53.14m |
| Expenses | US$25.22m |
| Earnings | US$27.91m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.37 |
| Gross Margin | 100.00% |
| Net Profit Margin | 52.53% |
| Debt/Equity Ratio | 108.5% |
How did HRZN perform over the long term?
See historical performance and comparisonDividends
7.6%
Current Dividend Yield84%
Payout RatioDoes HRZN pay a reliable dividends?
See HRZN dividend history and benchmarks| Horizon Technology Finance dividend dates | |
|---|---|
| Ex Dividend Date | Feb 17 2022 |
| Dividend Pay Date | Mar 16 2022 |
| Days until Ex dividend | 28 days |
| Days until Dividend pay date | 55 days |
Does HRZN pay a reliable dividends?
See HRZN dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:46 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.