Horizon Technology Finance Corp (HTFC): fair value, margin of safety and Wheel Score

Is HTFC undervalued?

Horizon Technology Finance Corp (HTFC) closed at 24.91 on 16 Oct 2026, 68% above the GLS average fair value of 14.80. 6 of the 8 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.

There is a wide gap between Lynch (1.69) and 10 Cap (47.41). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files HTFC under High Yield Income: a dividend yield above 4%.

Nine valuation models for HTFC

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.

Quality and financial health

Horizon Technology Finance Corp scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 0.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

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 5/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 18: No options

No options are listed on Horizon Technology Finance Corp in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 18) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 12k shares a day on a market cap of $308M, with a beta of 0.18 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

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

The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

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 Corp 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.

⚖ Compare HTFC with 7 of them   All Financial Services stocks →