Horizon Technology Finance Corporation
Horizon Technology Finance Corporation Fundamental Analysis
Horizon Technology Finance Corporation (HRZN) shows strong financial fundamentals with a PE ratio of 8.86, profit margin of 28.83%, and ROE of 6.89%. The company generates $0.1B in annual revenue with strong year-over-year growth of 20.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HRZN's fundamental strength across five key dimensions:
Efficiency Score
WeakHRZN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHRZN trades at attractive valuation levels.
Growth Score
ModerateHRZN shows steady but slowing expansion.
Financial Health Score
ModerateHRZN shows balanced financial health with some risks.
Profitability Score
ModerateHRZN maintains healthy but balanced margins.
Key Financial Metrics
Is HRZN Expensive or Cheap?
P/E Ratio
HRZN trades at 8.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HRZN's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Horizon Technology Finance Corporation at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.71 times EBITDA. This is generally considered low.
How Well Does HRZN Make Money?
Net Profit Margin
For every $100 in sales, Horizon Technology Finance Corporation keeps $28.83 as profit after all expenses.
Operating Margin
Core operations generate 42.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.89 in profit for every $100 of shareholder equity.
ROA
Horizon Technology Finance Corporation generates $2.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Horizon Technology Finance Corporation generates strong operating cash flow of $111.07M, reflecting robust business health.
Free Cash Flow
Horizon Technology Finance Corporation generates strong free cash flow of $111.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.52 in free cash annually.
FCF Yield
HRZN converts 66.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How HRZN Stacks Against Its Sector Peers
| Metric | HRZN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.86 | 18.85 | Better (Cheaper) |
| ROE | 6.89% | 808.00% | Weak |
| Net Margin | 28.83% | 2312.00% | Weak |
| Debt/Equity | 1.34 | 1.01 | Weak (High Leverage) |
| Current Ratio | 1.83 | 615.45 | Neutral |
| ROA | 2.72% | -23789.00% (disorted) | Weak |
HRZN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Horizon Technology Finance Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-15.34%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
195.87%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
192.74%
Industry Style: Value, Dividend, Cyclical
High Growth