HeartCore Enterprises, Inc. (HTCR) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 5.92%
• Average Volume (3M): 59.45K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.42
• Revenue Growth: 39.19%
• EPS Growth: 63.24%
• Country: US
• Employees: 91
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): -0.07
• Shares Outstanding: 22,075,333
• 10 Day Avg. Volume: 46,245
• 30 Day Avg. Volume: 59,447
• PEG Ratio: 0.07
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.85
• Enterprise Value/Ebitda: -0.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

HeartCore Enterprises faces significant challenges with profitability and cash flow despite strong revenue growth. Technical indicators suggest bearish momentum, and valuation metrics highlight risks, especially with a negative P/E ratio. The Nasdaq compliance issue further complicates the outlook, warranting caution for potential investors.

HeartCore Enterprises, Inc. Business Overview & Revenue Model

Company Description

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also provides data analytics services that allow enterprise businesses to create web experiences for their clients. In addition, it operates a digital transformation business that provides customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. The company was founded in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HeartCore Enterprises, Inc. generates revenue through the sale of its enterprise software solutions and digital transformation services. The company's key revenue streams include licensing fees from its software products, subscription fees for its customer experience management platforms, and consulting fees for its digital transformation services. Additionally, HeartCore may engage in strategic partnerships and collaborations with other technology firms to expand its market reach and enhance its service offerings, which can contribute to its earnings. By providing comprehensive technology solutions tailored to the needs of various industries, HeartCore aims to maintain a steady stream of income from its diverse client base.

HeartCore Enterprises, Inc. Financial Statement Overview

Summary

HeartCore Enterprises shows strong revenue growth of 39.16%, but profitability challenges persist with a negative net profit margin of -4.87%. The balance sheet reveals moderate financial leverage and manageable debt levels, but the negative return on equity indicates profitability issues. Cash flow improvements are necessary as operating cash flow remains negative, despite strengthened cash positions from investing activities.

Income Statement

HeartCore Enterprises has shown notable revenue growth from 2023 to 2024, with a 39.16% increase. However, the net profit margin remains negative at -4.87%, indicating ongoing profitability challenges. Gross profit margin improved significantly to 58.64%, suggesting better cost management. EBIT and EBITDA margins are positive, though minimal at 0.21%, reflecting a return to operational profitability.

Balance Sheet

The company's financial leverage is moderate with a debt-to-equity ratio of 0.54, reflecting manageable debt levels relative to equity. The equity ratio is 33.33%, indicating a fair portion of assets financed by equity. Return on equity is negative due to net losses, highlighting a need for improved profitability.

Cash Flow

Operating cash flow remains negative, though an improvement is noted with a less negative free cash flow. The company’s cash position has strengthened, aided by strong investing cash flows. The operating cash flow to net income ratio and free cash flow to net income ratio are negative, indicating cash flow challenges persist despite revenue growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.41M	21.85M	8.82M	10.82M	9.03M
	Gross Profit
17.83M	8.07M	3.35M	5.19M	4.02M
	EBIT
64.77K	-4.12M	-6.70M	139.02K	258.70K
	EBITDA
-4.46M	-4.16M	-6.55M	170.40K	399.69K
	Net Income Common Stockholders
-1.48M	-4.19M	-6.68M	-327.04K	150.96K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.62M	1.95M	7.18M	3.14M	3.06M
	Total Assets
13.97M	19.62M	12.14M	9.12M	10.36M
	Total Debt
3.78M	4.89M	4.55M	6.19M	8.49M
	Net Debt
1.66M	3.88M	-2.62M	3.05M	5.43M
	Total Liabilities
10.50M	11.96M	7.33M	9.68M	11.42M
	Stockholders Equity
4.65M	5.17M	4.81M	-558.95K	-1.41M
Cash Flow		Free Cash Flow
-4.78M	-4.86M	-4.87M	730.15K	718.58K
	Operating Cash Flow
-4.77M	-4.33M	-4.81M	766.30K	745.75K
	Investing Cash Flow
6.35M	-1.78M	-12.20K	-179.03K	-401.15K
	Financing Cash Flow
-318.65K	136.19K	8.92M	-257.35K	2.06M

HeartCore Enterprises, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTCR, the sentiment is Negative. The current price of 0.68 is above the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.74, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 70.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTCR.

HeartCore Enterprises, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%
VERB	54 Neutral	$8.71M	―	-66.08%	―	3125.00%	98.06%
HTCR	48 Neutral		3.64	-29.86%	5.92%	39.19%	63.24%
MRIN	45 Neutral	$3.44M	―	-91.75%	―	-9.89%	47.46%
VS	39 Underperform	$9.22M	―	-34.59%	―	-78.87%	85.62%
TGL	34 Underperform	$3.18M	―	-37.33%	―	-95.52%	-625.88%

HeartCore Enterprises, Inc. Corporate Events

HeartCore Faces Nasdaq Listing Compliance Challenge

On May 6, 2025, HeartCore Enterprises, Inc. received a notice from the Nasdaq Listing Qualifications Department indicating noncompliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market. This notification does not immediately affect the trading of the company’s stock, and HeartCore is considering its options to address the issue. The company has until November 3, 2025, to regain compliance, with a potential extension if certain conditions are met. However, there is no assurance that compliance will be regained.

Spark’s Take on HTCR Stock

According to Spark, TipRanks’ AI Analyst, HTCR is a Neutral.

HeartCore Enterprises is experiencing robust revenue growth but faces significant profitability challenges, as reflected in its financial performance score. The technical analysis suggests a bearish trend due to negative price momentum indicators. Valuation shows a high dividend yield, yet the negative P/E ratio signals caution. Overall, while there are growth prospects, the profitability and technical outlook warrant a balanced view on the stock.

To see Spark’s full report on HTCR stock, click here.