NasdaqGS:HRZN

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Executive Summary

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

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Horizon Technology Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HRZN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HRZN's weekly volatility has decreased from 11% to 4% over the past year.


Market Performance


7 Day Return

2.9%

HRZN

-2.6%

US Capital Markets

-4.6%

US Market


1 Year Return

36.2%

HRZN

38.0%

US Capital Markets

38.5%

US Market

Return vs Industry: HRZN matched the US Capital Markets industry which returned 36.4% over the past year.

Return vs Market: HRZN underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

HRZNIndustryMarket
7 Day2.9%-2.6%-4.6%
30 Day8.4%8.5%0.6%
90 Day16.2%14.9%1.9%
1 Year51.6%36.2%41.3%38.0%41.5%38.5%
3 Year90.6%39.6%39.5%29.1%56.7%46.7%
5 Year123.6%31.8%140.6%110.9%123.5%98.6%

Long-Term Price Volatility Vs. Market

How volatile is Horizon Technology Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HRZN ($14.76) is trading above our estimate of fair value ($11.82)

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 (22.8x) compared to the US Capital Markets industry average (23.4x).

PE vs Market: HRZN is poor value based on its PE Ratio (22.8x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: HRZN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HRZN is good value based on its PB Ratio (1.3x) compared to the US Capital Markets industry average (10.9x).

Future Growth

How is Horizon Technology Finance forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

50.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRZN's forecast earnings growth (50.3% per year) is above the savings rate (2%).

Earnings vs Market: HRZN's earnings (50.3% per year) are forecast to grow faster than the US market (20.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HRZN's revenue (6% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: HRZN's revenue (6% 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 (11.6%).

Past Performance

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

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRZN has a large one-off loss of $12.6M impacting its September 30 2020 financial results.

Growing Profit Margin: HRZN's current net profit margins (21.9%) are lower than last year (41.1%).


Past Earnings Growth Analysis

Earnings Trend: HRZN's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: HRZN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HRZN had negative earnings growth (-33.3%) over the past year, making it difficult to compare to the Capital Markets industry average (9.9%).


Return on Equity

High ROE: HRZN's Return on Equity (5.2%) is considered low.

Financial Health

How is Horizon Technology Finance's financial position?


Financial Position Analysis

Short Term Liabilities: HRZN's short term assets ($41.2M) exceed its short term liabilities ($8.7M).

Long Term Liabilities: HRZN's short term assets ($41.2M) do not cover its long term liabilities ($163.7M).


Debt to Equity History and Analysis

Debt Level: HRZN's debt to equity ratio (79.8%) is considered high.

Reducing Debt: HRZN's debt to equity ratio has increased from 64.5% to 79.8% 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 (3.5x coverage).


Balance Sheet

Dividend

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

8.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRZN's dividend (8.13%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HRZN's dividend (8.13%) is in the top 25% of dividend payers in the US market (3.72%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (185.7%), HRZN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRZN's dividends in 3 years are not forecast to be well covered by earnings (90.3% payout ratio).

Management

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

6.5yrs

Average management tenure


CEO

Rob Pomeroy (69 yo)

10.92yrs

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

NamePositionTenureCompensationOwnership
Robert Pomeroy
Chairman & CEO10.92yrsno data0.68%
$ 1.8m
Gerald Michaud
President & Director10.92yrsno data0.52%
$ 1.4m
Daniel Trolio
Senior VP4.42yrsno data0.0052%
$ 14.2k
Daniel Devorsetz
Senior VP & Chief Investment Officerno datano data0.034%
$ 91.8k
Leon Berman
Investor Relations Contactno datano datano data
John Bombara
Senior VP10.58yrsno data0.051%
$ 137.7k
Megan Bacon
Marketing Support Managerno datano datano data
Kevin Walsh
Managing Director of Technology - West Coast3.08yrsno datano data
Todd McDonald
Managing Director of Technology – Mid-Atlantic8.5yrsno datano data
Gregory Clark
Managing Director of Technology - East Coastno datano datano data
Mishone Donelson
Managing Director of Life Science – East Coast3.08yrsno datano data
Kevin May
Senior Managing Director of West Coast3.08yrsno datano data

6.5yrs

Average Tenure

56yo

Average Age

Experienced Management: HRZN's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Pomeroy
Chairman & CEO10.92yrsno data0.68%
$ 1.8m
Gerald Michaud
President & Director10.92yrsno data0.52%
$ 1.4m
James Bottiglieri
Independent Director10.58yrsUS$104.50k0.060%
$ 163.3k
Joseph Savage
Independent Director4.92yrsUS$94.50k0.19%
$ 516.6k
Elaine Sarsynski
Independent Director8.67yrsUS$102.00k0.038%
$ 103.3k
Edmund Mahoney
Lead Independent Directorno dataUS$97.00k0.033%
$ 88.9k

10.6yrs

Average Tenure

68yo

Average Age

Experienced Board: HRZN's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 26.1%.


Top Shareholders

Company Information

Horizon Technology Finance Corporation's company bio, 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
  • Market Cap: US$271.106m
  • Shares outstanding: 18.37m
  • Website: https://www.horizontechfinance.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRZNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2010

Biography

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 in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:37
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.