Stock fact sheet · data as of
Horizon Technology Finance Corporation (HRZN): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is HRZN undervalued?
HRZN has a margin of safety of 51%: the stock closed at 4.59 on 16 Oct 2026 against a GLS average fair value of 9.46. 3 of the 8 valuation models that produced a number sit above the price. Our screens 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 0.1736 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.
The nightly engine files HRZN under High Yield Income: a dividend yield above 4%.
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 | -27% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 0.9877 | -78% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.1736 | -96% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.03 | -56% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 46.63 | +916% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 5.91 | +29% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 15.74 | +243% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 0.8667 | -81% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.59 | -222% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 5.00 | +9% | 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 0.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
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 49.0%.
The dividend yield is high at 23.31% (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 | 0.4 / 10 | ROE | -0.8% |
| Debt / equity | 1.49 | ROA | -0.3% |
| Free-cash-flow yield | 49.0% | Payout ratio | 1330% |
| Institutions | 2 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 74: Good
HRZN scores 74 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (1/15), the option premium on offer (20/20) and how easily the stock trades (13/20). Moat (1/15) is the part holding the score back.
Implied volatility is 49% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 6,129 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.2M shares a day on a market cap of $308M, with a beta of 0.99; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 51% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 1 / 15 | moat 0.4/10 | |
| Premium | 20 / 20 | implied volatility 49% | |
| Stability | 13 / 20 | 1.2M shares/day, $308M cap, beta 0.99 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Horizon Technology Finance Corporation reports earnings on 27 Oct 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 16 Oct 2026 (0.0900 per share), so a covered call sold before then carries a small early-assignment risk around that date.
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 |
|---|---|---|---|---|---|
| FAMFX FAM Small Cap Fund Investor Class | 23.12 | 6,575.74 | +100% | 39No options | $307M |
| MASGX Matthews Emerging Markets Sustainable Future Fund | 18.08 | 10.67 | -70% | 18No options | $308M |
| HTFC Horizon Technology Finance Corp | 24.91 | 14.80 | -68% | 18No options | $308M |
| PPT Franklin Premier Income Trust | 3.21 | 5.64 | +43% | 39No options | $307M |
| ZTR Virtus Total Return Fund Inc. | 6.22 | 27.72 | +78% | 39No options | $309M |
| BKT BlackRock Income Trust, Inc. | 9.62 | 13.54 | +29% | 39No options | $312M |
| BAGAX Brown Advisory Growth Equity Adv Shares | 8.41 | 41.02 | +79% | 39No options | $304M |
| HIO Western Asset High Income Opportunity Fund Inc | 3.29 | 7.21 | +54% | 39No options | $313M |
| MINVX Madison Large Cap Fund Class Y | 30.86 | 99.74 | +69% | 39No options | $301M |
| FWRLX Fidelity Select Wireless | 14.76 | 77.17 | +81% | 39No options | $301M |
| EFR Eaton Vance Senior Floating-Rate Trust | 10.19 | 33.51 | +70% | 39No options | $301M |
| HIX Western Asset High Income Fund II Inc | 3.50 | 13.82 | +75% | 39No options | $315M |
⚖ Compare HRZN with 7 of them All Financial Services stocks →
Screen the whole market the same way
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 same eight-rule screen, 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 4.59 the stock is 51% below the average fair value of 9.46 (data as of 16 Oct 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 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for HRZN?
9.46 per share as of 16 Oct 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 27 Oct 2026 (after the close), 11 days from the data date of 16 Oct 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 36 listed contracts with 6,129 open interest across all expiries and implied volatility of 49% 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.