(HRZN) Horizon Technology Finance - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 288m USD | Total Return: -32.3% in 12m
Industry Rotation: +4.2
Avg Turnover: 4.03M
EPS Trend: -78.0%
Qual. Beats: -1
Rev. Trend: -19.0%
Qual. Beats: 0
Warnings
Share dilution 17.6% YoY
Tailwinds
No distinct edge detected
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a Business Development Company (BDC) that provides structured debt financing to development-stage companies. The firm primarily targets venture capital-backed entities operating within the technology, life science, healthcare information, and sustainability sectors in the United States.
Operating as a BDC, Horizon typically generates income through interest payments on secured loans and potential equity upside via warrants. This business model allows institutional and retail investors to access the venture debt asset class, which serves as a non-dilutive capital source for startups that have already secured professional venture backing.
For a deeper look into historical performance and valuation metrics, consider reviewing the comprehensive data available on ValueRay.
- Net interest margin sensitivity to Federal Reserve benchmark rate fluctuations
- Portfolio credit quality and non-accrual rates within venture-backed startups
- Availability of equity capital for portfolio company follow-on funding rounds
- Prepayment fees and exit gains from warrant exercise activity
- Competitive pressure on yields from private credit and venture lenders
| Net Income: 21.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 14.20 > 1.0 |
| NWC/Revenue: 28.69% < 20% (prev -487.7%; Δ 516.4% < -1%) |
| CFO/TA 0.15 > 3% & CFO 119.1m > Net Income 21.6m |
| Net Debt (412.7m) to EBITDA (30.4m): 13.57 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (47.3m) vs 12m ago 17.63% < -2% |
| Gross Margin: 60.34% > 18% (prev -6.44%; Δ 6.68k% > 0.5%) |
| Asset Turnover: 9.46% > 50% (prev 0.56%; Δ 8.90% > 0%) |
| Interest Coverage Ratio: 0.06 > 6 (EBITDA TTM 30.4m / Interest Expense TTM 32.3m) |
| A: 0.03 (Total Current Assets 47.2m - Total Current Liabilities 25.8m) / Total Assets 791.6m |
| B: -0.30 (Retained Earnings -241.4m / Total Assets 791.6m) |
| C: 0.00 (EBIT TTM 1.86m / Avg Total Assets 790.6m) |
| D: -0.53 (Book Value of Equity -241.3m / Total Liabilities 457.8m) |
| Altman-Z'' Score: -1.35 = CCC |
Over the past week, the price has changed by -6.39%, over one month by -2.97%, over three months by -33.62% and over the past year by -32.34%.
- StrongBuy: 0
- Buy: 1
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 5.4 | 27.1% |
P/S = 3.0138
P/B = 0.9282
P/EG = 1.9068
Revenue TTM = 74.8m USD
EBIT TTM = 1.86m USD
EBITDA TTM = 30.4m USD
Long Term Debt = 421.4m USD (estimated: total debt 447.2m - short term 25.8m)
Short Term Debt = 25.8m USD (from shortTermDebt, last quarter)
Debt = 447.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 412.7m USD (from netDebt column, last quarter)
Enterprise Value = 700.7m USD (288.1m + Debt 447.2m - CCE 34.5m)
Interest Coverage Ratio = 0.06 (Ebit TTM 1.86m / Interest Expense TTM 32.3m)
EV/FCF = 5.88x (Enterprise Value 700.7m / FCF TTM 119.1m)
FCF Yield = 17.00% (FCF TTM 119.1m / Enterprise Value 700.7m)
FCF Margin = 159.3% (FCF TTM 119.1m / Revenue TTM 74.8m)
Net Margin = 28.83% (Net Income TTM 21.6m / Revenue TTM 74.8m)
Gross Margin = 60.34% ((Revenue TTM 74.8m - Cost of Revenue TTM 29.6m) / Revenue TTM)
Gross Margin QoQ = 76.90% (prev 58.14%)
Tobins Q-Ratio = 0.89 (Enterprise Value 700.7m / Total Assets 791.6m)
Interest Expense / Debt = 1.83% (Interest Expense 8.18m / Debt 447.2m)
Taxrate = 21.0% (US default 21%)
NOPAT = 1.47m (EBIT 1.86m * (1 - 21.00%))
Current Ratio = 1.83 (Total Current Assets 47.2m / Total Current Liabilities 25.8m)
Debt / Equity = 1.34 (Debt 447.2m / totalStockholderEquity, last quarter 333.9m)
Debt / EBITDA = 13.57 (Net Debt 412.7m / EBITDA 30.4m)
Debt / FCF = 3.47 (Net Debt 412.7m / FCF TTM 119.1m)
Total Stockholder Equity = 313.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.73% (Net Income 21.6m / Total Assets 791.6m)
RoE = 6.89% (Net Income TTM 21.6m / Total Stockholder Equity 313.0m)
RoCE = 0.25% (EBIT 1.86m / Capital Employed (Equity 313.0m + L.T.Debt 421.4m))
RoIC = 0.20% (NOPAT 1.47m / Invested Capital 746.7m)
WACC = 4.08% (E(288.1m)/V(735.2m) * Re(8.17%) + D(447.2m)/V(735.2m) * Rd(1.83%) * (1-Tc(0.21)))
Discount Rate = 8.17% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 16.84%
[DCF] Terminal Value 80.82% ; FCFF base≈74.1m ; Y1≈48.7m ; Y5≈22.2m
[DCF] Fair Price = 4.30 (EV 706.3m - Net Debt 412.7m = Equity 293.6m / Shares 68.3m; r=6.0% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -77.96 | EPS CAGR: -15.03% | SUE: -2.12 | # QB: -1
Revenue Correlation: -18.99 | Revenue CAGR: 17.76% | SUE: 0.01 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.10 | Chg30d=-48.72% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.17 | Chg30d=-12.95% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=0.69 | Chg30d=-12.18% | Revisions=-20% | GrowthEPS=-34.4% | GrowthRev=+11.5%
EPS next Year (2027-12-31): EPS=0.78 | Chg30d=+2.71% | Revisions=+20% | GrowthEPS=+13.3% | GrowthRev=+29.4%
[Analyst] Revisions Ratio: +20%