Hotto Link, Inc. (3680) AI Stock Analysis

• Market Cap: ¥4.11B
• Dividend Yield: 1.15%
• Average Volume (3M): 238.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -22.88%
• EPS Growth: -441.25%
• Country: JP
• Employees: 140
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -7.96
• Shares Outstanding: 15,965,800
• 10 Day Avg. Volume: 211,960
• 30 Day Avg. Volume: 238,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥275.00
• Price Target Upside: 4.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥275.00 ▲(4.96% Upside)

The overall stock score of 52 reflects significant challenges in financial performance, particularly in revenue and profit growth. Technical analysis indicates bearish momentum, and valuation metrics are weak due to negative earnings. The company's strong balance sheet provides some stability, but cash flow concerns and negative growth trends are notable risks.

Hotto Link, Inc. Business Overview & Revenue Model

Company Description

Hotto Link, Inc. (3680) is a leading technology company in Japan that specializes in social media analysis and marketing solutions. The company operates in sectors such as information technology and digital marketing, offering core products and services that include social media data analysis, brand monitoring, and digital marketing tools. Hotto Link is known for its innovative use of artificial intelligence and big data analytics to help businesses enhance their online presence and make informed marketing decisions.

How the Company Makes Money

Hotto Link, Inc. makes money primarily through its software-as-a-service (SaaS) model, where it charges clients subscription fees for access to its social media analysis and digital marketing platforms. The company also generates revenue by providing customized data analysis services and consulting to businesses seeking to optimize their marketing strategies. In addition, Hotto Link may establish partnerships with other technology firms and digital marketing agencies, enhancing its service offerings and expanding its customer base. Its revenue streams are supported by the increasing demand for data-driven marketing solutions and the growing importance of social media in business strategies.

Hotto Link, Inc. Financial Statement Overview

Summary

The company is experiencing significant challenges in revenue and profit growth, with negative revenue growth rates and a negative net profit margin in 2024. Despite a strong equity position, the negative return on equity and declining cash flow metrics indicate financial instability.

Income Statement

The company has experienced a significant decline in revenue from 2022 to 2024, with a negative revenue growth rate of -46% in 2023 and -10% in 2024. Its net profit margin has also turned negative in 2024, indicating a challenging profitability environment. Despite past profitability in 2022 and 2023, the recent decline in EBIT and EBITDA margins highlights operational challenges.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 74% in 2024, reflecting financial stability. The debt-to-equity ratio remains low, indicating manageable leverage. However, the return on equity has turned negative in 2024 due to net losses, which is a concern for shareholders.

Cash Flow

Operating cash flow has declined from 2023 to 2024, with a negative trend in free cash flow growth. Despite this, the company has managed to maintain a positive operating cash flow to net income ratio, supported by strong cash reserves. However, the negative free cash flow growth poses a risk if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.71B	4.27B	4.74B	7.91B	6.57B	4.39B
Gross Profit	1.17B	1.29B	1.57B	2.16B	2.16B	1.61B
EBITDA	-405.45M	-40.26M	699.00M	2.74B	1.48B	361.65M
Net Income	-1.01B	-564.63M	226.00M	1.82B	764.29M	18.63M
Balance Sheet
Total Assets	7.18B	7.87B	8.49B	8.47B	7.31B	5.77B
Cash, Cash Equivalents and Short-Term Investments	2.97B	3.30B	3.50B	3.60B	2.60B	2.07B
Total Debt	878.42M	978.25M	1.18B	1.35B	1.61B	1.54B
Total Liabilities	1.77B	2.02B	2.35B	2.52B	3.18B	2.80B
Stockholders Equity	5.40B	5.86B	6.14B	5.95B	3.87B	2.79B
Cash Flow
Free Cash Flow	34.00M	295.00M	688.00M	478.36M	403.90M	180.62M
Operating Cash Flow	140.70M	295.60M	698.00M	793.56M	678.71M	466.43M
Investing Cash Flow	-469.67M	-432.91M	-716.00M	-291.06M	-536.01M	-342.14M
Financing Cash Flow	-197.18M	-193.11M	-154.00M	375.77M	307.87M	255.90M

Hotto Link, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 262.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3680, the sentiment is Negative. The current price of 262 is below the 20-day moving average (MA) of 279.05, below the 50-day MA of 293.04, and below the 200-day MA of 277.95, indicating a bearish trend. The MACD of -7.76 indicates Positive momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3680.

Hotto Link, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4178	67 Neutral	¥2.66B	39.44	―	―	-3.54%	-41.26%
4378	63 Neutral	¥1.50B	86.11	―	―	-3.24%	-298.72%
3858	62 Neutral	¥3.62B	84.02	―	―	12.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4288	54 Neutral	¥1.95B	―	―	―	30.27%	29.21%
3680	52 Neutral	¥4.11B	―	―	1.15%	-22.88%	-441.25%
6662	45 Neutral	¥3.68B	―	―	―	21.60%	-43.47%