Hybrid Technologies Co.,Ltd. (4260) AI Stock Analysis

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Hybrid Technologies Co.,Ltd.

(TSE/TYO:4260)

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Rating:50Neutral

Price Target:JPY 305.00▼(-4.39% Downside)

Action:reiterated

Date:10/29/26

The score is held back primarily by weakening financial quality—TTM losses, negative operating/free cash flow, and higher leverage—despite strong revenue growth. Technicals provide meaningful support as the stock trades above key moving averages with positive momentum, but valuation is constrained by loss-making earnings (negative P/E) and no indicated dividend yield.

Positive Factors

Revenue GrowthStrong TTM revenue growth indicates continued demand and expanding business activity despite weaker profitability. If the company can convert this larger revenue base into healthier margins, growth should support greater operating leverage and strengthen its competitive position over the next several quarters.

Negative Factors

Profitability DeteriorationThe company is growing revenue without currently converting that growth into durable earnings, as operating margin is thin and TTM net income has turned negative. Continued margin compression could limit reinvestment capacity, weaken returns, and make future growth less valuable to shareholders.

Hybrid Technologies Co.,Ltd. (4260) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.60B
Dividend Yield: ―
Average Volume (3M): 735.75K
Price to Earnings (P/E): -52.4
Beta (1Y): 0.62
Revenue Growth: 82.23%
EPS Growth: 5.31%
Country: Japan
Employees: 408
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Hybrid Technologies Co.,Ltd. Business Overview & Revenue Model

Company Description

Hybrid Technologies Co., Ltd. operates in the software development sector, serving clients in both Japan and Vietnam. Their expertise spans a broad spectrum of services, from assisting with the incubation of new businesses and services, and providing...

How the Company Makes Money

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Hybrid Technologies Co.,Ltd. Financial Statement Overview

Summary

Despite strong TTM revenue growth (+19.6%), profitability has deteriorated sharply: EBIT margin is thin (~3.1%) and TTM net income is negative. Cash generation is a key weakness with negative operating cash flow (-440.8M) and negative free cash flow (-477.6M). Balance sheet risk has also increased as debt-to-equity rose to ~1.31 in TTM while ROE fell to ~0.2%, reducing financial resilience.

Income Statement

46Neutral

Balance Sheet

41Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	5.58B	3.02B	3.14B	2.91B	2.41B	1.70B
Gross Profit	1.84B	1.02B	974.08M	1.05B	943.65M	651.76M
EBITDA	390.96M	212.57M	305.39M	352.60M	451.33M	243.84M
Net Income	-69.61M	18.73M	53.02M	160.33M	249.62M	75.13M
Balance Sheet
Total Assets	6.73B	3.89B	4.07B	3.85B	2.97B	1.34B
Cash, Cash Equivalents and Short-Term Investments	850.33M	916.62M	1.36B	1.30B	1.81B	500.06M
Total Debt	2.77B	1.19B	1.14B	971.63M	427.02M	458.39M
Total Liabilities	4.65B	1.72B	1.79B	1.51B	839.59M	772.04M
Stockholders Equity	1.98B	2.13B	2.28B	2.33B	2.13B	570.85M
Cash Flow
Free Cash Flow	-477.60M	4.20M	356.63M	208.41M	318.74M	201.97M
Operating Cash Flow	-440.84M	11.72M	361.71M	260.83M	344.80M	209.34M
Investing Cash Flow	-744.81M	-540.21M	-300.22M	-694.56M	-247.79M	-486.02M
Financing Cash Flow	908.85M	92.68M	13.29M	-85.08M	1.18B	279.34M

Hybrid Technologies Co.,Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price319.00

Price Trends

50DMA231.00Positive

100DMA231.05Positive

200DMA255.16Positive

Market Momentum

MACD27.14Negative

RSI60.02Neutral

STOCH51.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4260, the sentiment is Positive. The current price of 319.00 is above the 20-day moving average (MA) of 263.45, above the 50-day MA of 231.00, and above the 200-day MA of 255.16, indicating a bullish trend. The MACD of 27.14 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4260.

Hybrid Technologies Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4260 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4396	81Outperform	JPY 31.32B	16.64	―	2.12%	15.42%	27.83%
JP:4072	81Outperform	JPY 35.53B	11.20	―	3.04%	11.79%	55.44%
JP:3940	76Outperform	JPY 5.98B	16.08	―	2.77%	-2.56%	-7.81%
JP:4076	73Outperform	JPY 5.25B	9.30	―	3.38%	9.70%	7.03%
JP:5576	64Neutral	JPY 7.12B	10.29	―	3.82%	20.58%	41.21%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4260	50Neutral	JPY 3.67B	-52.38	―	―	82.23%	5.31%

* Technology Sector Average

Performance Comparison

JP:4260 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4260	Hybrid Technologies Co.,Ltd.	319.00	-15.00	-4.49%
JP:3940	Nomura System Corporation Co., Ltd.	128.00	-0.77	-0.60%
JP:4072	Densan System Holdings Co. Ltd.	3290.00	-167.86	-4.85%
JP:4076	CNS Co.,Ltd.	1805.00	174.33	10.69%
JP:4396	System Support, Inc.	1507.00	24.62	1.66%
JP:5576	O.B.System Inc.	3010.00	345.68	12.97%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Hybrid Technologies Co.,Ltd. AI Stock Analysis

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