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Upturn AI SWOT - About
Horizon Technology Finance Corporation (HTFB)
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Upturn Advisory Summary
03/13/2025: HTFB (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -1.78% | Avg. Invested days 54 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/13/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 343.84M USD | Price to earnings Ratio 20.61 | 1Y Target Price - |
Price to earnings Ratio 20.61 | 1Y Target Price - | ||
Volume (30-day avg) 6874 | Beta 1.17 | 52 Weeks Range 22.60 - 25.47 | Updated Date 04/2/2025 |
52 Weeks Range 22.60 - 25.47 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 5.22% | Basic EPS (TTM) 1.22 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -2.31% | Operating Margin (TTM) 84.56% |
Management Effectiveness
Return on Assets (TTM) 7.25% | Return on Equity (TTM) -0.77% |
Valuation
Trailing PE 20.61 | Forward PE - | Enterprise Value 1200283392 | Price to Sales(TTM) - |
Enterprise Value 1200283392 | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Horizon Technology Finance Corporation
Company Overview
History and Background
Horizon Technology Finance Corporation (HRZN) was founded in 2004 and is headquartered in Farmington, Connecticut. It is a specialty finance company that lends to and invests in development-stage companies in the technology, life science, healthcare information and services, and cleantech industries. It focuses on venture debt investments.
Core Business Areas
- Venture Debt Investments: Provides secured loans to venture capital-backed companies. These loans typically finance working capital, capital expenditures, or acquisitions.
- Warrant Investments: Often receives warrants to purchase common stock of its portfolio companies, providing potential equity upside.
Leadership and Structure
Robert Pomeroy serves as Chairman and Chief Executive Officer. The company operates as a business development company (BDC) under the Investment Company Act of 1940.
Top Products and Market Share
Key Offerings
- Venture Debt: Provides debt financing to venture-backed technology and life science companies. The market share is difficult to quantify precisely, but HRZN is a recognized player in this niche market. Competitors include Hercules Capital (HTGC), Trinity Capital (TRIN), and SLR Investment Corp. (SLRC). Revenue from this source constitutes the bulk of HRZN's income. Specific breakdown unavailable.
- Warrants and Equity Investments: Provides potential upside through equity participation in portfolio companies. Revenue from these investments is variable and depends on the success of the portfolio companies. Competitors for deal flow include venture capital firms, other BDCs, and private equity firms. Specific market share unavailable.
Market Dynamics
Industry Overview
The venture debt market is driven by the funding needs of early-stage and growth-stage companies, particularly in technology and life sciences. Demand is influenced by venture capital activity, interest rates, and overall economic conditions.
Positioning
HRZN positions itself as a partner to venture capital firms, providing debt financing that complements equity investments. Its competitive advantage lies in its industry expertise, relationships with venture capitalists, and ability to provide customized financing solutions.
Total Addressable Market (TAM)
The TAM is estimated to be in the billions of dollars annually, encompassing the debt financing needs of venture-backed companies. HRZN captures a portion of this market through its lending activities, focusing on specific sectors and investment sizes. Estimate $5B annually. HRZN focuses on a subset of this TAM, targeting the high-growth tech and life science segments.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Focus on high-growth sectors
- Strong relationships with venture capital firms
- Disciplined investment approach
- Attractive dividend yield
Weaknesses
- Exposure to illiquid investments
- Dependence on venture capital activity
- Potential for credit losses
- Smaller market capitalization compared to larger BDCs
- High volatility
Opportunities
- Growing demand for venture debt
- Expansion into new sectors
- Strategic acquisitions
- Increasing AUM (Assets Under Management)
- Higher interest rates
Threats
- Economic downturn
- Increased competition
- Rising interest rates
- Regulatory changes
- Deterioration in credit quality of portfolio companies
Competitors and Market Share
Key Competitors
- HTGC
- TRIN
- SLRC
Competitive Landscape
HRZN is smaller compared to HTGC but differentiates through niche sector focus and VC relationships. TRIN has a similar focus but different risk tolerances. SLRC has a wider investment mandate.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends can be assessed by examining past revenue, earnings, and AUM growth rates.
Future Projections: Future growth projections would depend on analyst estimates and company guidance. These can be found on financial news websites like Yahoo Finance or Bloomberg.
Recent Initiatives: Recent strategic initiatives could include new partnerships, investments in new sectors, or changes in investment strategy. Review of recent press releases and investor presentations would provide information on these initiatives.
Summary
Horizon Technology Finance Corporation is a niche player in venture debt, leveraging VC relationships. Their high dividend attracts investors but carries the inherent risk of lending to early-stage companies. Economic downturns and rising interest rates pose threats to their portfolio's health, requiring careful monitoring of credit quality and portfolio diversification.
Similar Companies
HTGC
Hercules Capital Inc
HTGC
Hercules Capital Inc
OCSL
Oaktree Specialty Lending Corp
OCSL
Oaktree Specialty Lending Corp
SLRC
SLR Investment Corp
SLRC
SLR Investment Corp
TRIN
Trinity Capital Inc
TRIN
Trinity Capital Inc
Sources and Disclaimers
Data Sources:
- SEC filings (10-K, 10-Q), Company website, Financial news sources (e.g., Yahoo Finance, Bloomberg)
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Horizon Technology Finance Corporation
Exchange NYSE | Headquaters Farmington, CT, United States | ||
IPO Launch date 2021-04-07 | Chairman & CEO Mr. Robert D. Pomeroy Jr. | ||
Sector - | Industry - | Full time employees - | |
Full time employees - | |||
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries. It seeks to invest in companies in the United States.
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