Horizon Beneish M Score

HRZN -  USA Stock  

USD 17.27  0.01  0.06%

This module uses fundamental data of Horizon Technology to approximate the value of its Beneish M Score. Horizon Technology M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Horizon Technology Piotroski F Score and Horizon Technology Altman Z Score analysis.

Horizon Beneish M Score 

 
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Horizon Technology Issuance Repayment of Debt Securities is quite stable at the moment as compared to the past year. The company's current value of Issuance Repayment of Debt Securities is estimated at 34.91 Million. Debt to Equity Ratio is expected to rise to 0.93 this year, although the value of Total Debt will most likely fall to about 163 M. Horizon Technology Earnings per Diluted Share are quite stable at the moment as compared to the past year. The company's current value of Earnings per Diluted Share is estimated at 0.54. Enterprise Value over EBIT is expected to rise to 32.77 this year, although the value of Dividends per Basic Common Share will most likely fall to 1.22.
At this time, it appears that Horizon Technology is an unlikely manipulator. The earnings manipulation may begin if Horizon Technology's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Horizon Technology executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Horizon Technology's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.19
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
N/A
Asset Quality
N/A
Expense Coverage
0.96
Gross Margin Strengs
1.11
Accruals Factor
0.96
Depreciation Resistance
N/A
Net Sales Growth
0.94
Financial Leverage Condition
0.96

Horizon Technology Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Horizon Technology's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues43.1 M46 M
Notably Down
Increasing
Slightly volatile
Selling General and Administrative ExpenseM2.2 M
Moderately Down
Decreasing
Slightly volatile
Net Cash Flow from Operations(25.9 M)(25.3 M)
Fairly Down
Decreasing
Stable
Total Assets370.5 M407.2 M
Significantly Down
Increasing
Slightly volatile
Investments344.4 M380.8 M
Moderately Down
Increasing
Slightly volatile
Total Liabilities171 M194.6 M
Fairly Down
Increasing
Slightly volatile
Total Debt163 M185.8 M
Fairly Down
Increasing
Slightly volatile
Operating Income28.3 M30.6 M
Significantly Down
Increasing
Slightly volatile
Gross Margin0.830.747
Significantly Up
Increasing
Slightly volatile

Horizon Technology Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Horizon Technology's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Horizon Technology in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Horizon Technology's degree of accounting gimmicks and manipulations.

About Horizon Technology Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Earnings Before Interest Taxes and Depreciation Amortization EBITDA

17.57 MillionShare
Horizon Technology Earnings Before Interest Taxes and Depreciation Amortization EBITDA are quite stable at the moment as compared to the past year. The company's current value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated at 17.57 Million

Horizon Technology Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Horizon Technology. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues32.98 M25.78 M31.09 M43.12 M46.03 M43.09 M
Total Assets239.25 M234.15 M266.75 M344 M407.16 M370.53 M
Selling General and Administrative Expense1.75 M1.5 M1.7 M1.88 M2.21 M1.99 M
Total Liabilities100.06 M99.07 M132.49 M159.95 M194.56 M170.99 M
Total Debt95.6 M94.08 M126.85 M152.05 M185.82 M163.05 M
Operating Income22.89 M17.49 M20.26 M29.04 M30.64 M28.31 M
Net Cash Flow from Operations52.31 M(14.84 M)(12.06 M)(51.41 M)(25.28 M)(25.95 M)
Investments194 M222.1 M248.44 M330.47 M380.8 M344.38 M

About Horizon Technology Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Horizon Technology F's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Horizon Technology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Horizon Technology F based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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, and cleantech industries. Horizon Technology operates under Asset Management classification in the United States and is traded on NASDAQ Exchange.

Horizon Technology Investors Sentiment

The influence of Horizon Technology's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Horizon. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - HRZN

Horizon Technology Investor Sentiment

Most of Macroaxis users are currently bullish on Horizon Technology F. What is your judgment towards investing in Horizon Technology F? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check Horizon Technology Piotroski F Score and Horizon Technology Altman Z Score analysis. Note that the Horizon Technology information on this page should be used as a complementary analysis to other Horizon Technology's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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The market value of Horizon Technology is measured differently than its book value, which is the value of Horizon that is recorded on the company's balance sheet. Investors also form their own opinion of Horizon Technology's value that differs from its market value or its book value, called intrinsic value, which is Horizon Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Horizon Technology's market value can be influenced by many factors that don't directly affect Horizon Technology underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Horizon Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine Horizon Technology value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Horizon Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.