Stock fact sheet · data as of
Horizon Technology Finance Corporation (HRZN): fair value, margin of safety and Wheel Score
Ticker symbol HRZN · Financial Services · Asset Management · United States · Blend Income
Is HRZN undervalued?
HRZN has a margin of safety of 58%: the stock closed at 4.03 on 5 Nov 2026 against a GLS average fair value of 9.57. 3 of the 8 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: Lynch gives 0.2765 while 10 Cap gives 46.63. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for HRZN, so the nightly engine files it under Blend (value score 85, growth score 68, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for HRZN
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 3.36 | -17% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 1.19 | -70% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.2765 | -93% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.35 | -42% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 46.63 | +1057% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 6.16 | +53% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 15.74 | +291% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 0.8667 | -78% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.59 | -239% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 5.00 | +24% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health HRZN scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.7 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC -0.3%, ROE -0.8%, ROA -0.3% - with debt at 1.49 times equity and a free-cash-flow yield of 55.9%.
The dividend yield is high at 26.55% (payout ratio 1330%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 2/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | -0.3% |
|---|---|---|---|
| GLS Moat | 3.7 / 10 | ROE | -0.8% |
| Debt / equity | 1.49 | ROA | -0.3% |
| Free-cash-flow yield | 55.9% | Payout ratio | 1330% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 44: Weak
HRZN scores 44 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (2,188 open interest, 48 a day); and filter 8, big enough - market cap $270M (under $1.0B); and filter 9, not a penny stock - price 4.03 (under $5), and the parts are thin too - value strong, premium strong, moat fair, health good, red flags weak, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 62% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 2,188 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 422k shares a day on a market cap of $270M, with a beta of 0.98; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (2,188 open interest, 48 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $270M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 4.03 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 58% below fair value | |
| Premium | Strong | implied volatility 62% | |
| Moat | Fair | moat 3.7/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Weak | Red Flags score 60/100 | |
| Option trading | Weak | 48 contracts a day, 2,188 open interest | |
| Stability | Fair | beta 0.98, $270M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
Horizon Technology Finance Corporation reports earnings on 5 Nov 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 17 Nov 2026 (0.0900 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Horizon Technology Finance Corporation by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PMM Franklin Managed Municipal Income Trust | 6.31 | 13.75 | +54% | 25No options | $270M |
| MIN Aberdeen Intermediate Income Fund | 14.26 | 13.15 | -8% | 10No options | $270M |
| DBL DoubleLine Opportunistic Credit Fund | 13.64 | 19.67 | +31% | 28No options | $270M |
| HTFC Horizon Technology Finance Corp | 25.00 | 16.01 | -56% | 16No options | $271M |
| RAM Roundhill T-REX 2X Long DRAM Daily Target ETF | 7.21 | - | - | 20Weak | $272M |
| MMD NYLI MacKay DefinedTerm Muni Opportunities Fund Shs of Beneficial Interest | 14.24 | 37.24 | +62% | 26No options | $267M |
| CFNB California First Leasing Corporation | 1,480.00 | 18,798.46 | +92% | 30No options | $266M |
| NPCT Nuveen Core Plus Impact Fund | 9.23 | 18.16 | +49% | 26No options | $265M |
| PMO Franklin Municipal Opportunities Trust | 10.04 | 29.09 | +65% | 25No options | $275M |
| AINTX Ariel International Investor | 18.30 | 77.48 | +76% | 26No options | $276M |
| DSM BNY Mellon Strategic Municipal Bond Fund, Inc. | 5.60 | 10.47 | +47% | 24No options | $277M |
| VALSX Value Line Select Growth Fund | 30.68 | 25.98 | -18% | 15No options | $278M |
⚖ Compare HRZN with 7 of them All Financial Services stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about HRZN
Is HRZN undervalued right now?
By the GLS models, yes: at 4.03 the stock is 58% below the average fair value of 9.57 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of HRZN and what does it mean?
HRZN scores 44 out of 100 (Weak) - it fails Wheel Trade Filters 1, 8, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for HRZN?
9.57 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Horizon Technology Finance Corporation report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 0 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does HRZN have listed options, and how liquid are they?
Yes. The nightly snapshot found 12 listed contracts with 2,188 open interest across all expiries and implied volatility of 62% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.