HTC (HTJ) AI Stock Analysis

• Market Cap: €1.02B
• Dividend Yield: N/A
• Average Volume (3M): 12.00
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.95
• Revenue Growth: -8.35%
• EPS Growth: N/A
• Country: DE
• Employees: 2,173
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 0.43
• Shares Outstanding: 208,990,520
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 12
• PEG Ratio: -17.58
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 10.74
• P/FCF Ratio: -12.71
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: €4.00 ▲(0.00% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily held down by weak financial performance (declining revenue, negative operating profitability, and negative operating/free cash flow) and a technically weak trend (below major moving averages with negative MACD). A low P/E provides some support, but not enough to offset the fundamental and trend risks.

Positive Factors

Manageable leverage (moderate D/E)

A debt-to-equity ratio around 0.36 provides HTC with financial flexibility to fund product development or absorb cyclical weakness without high default risk. Manageable leverage supports longer-term investment in VR hardware, software and partnerships while limiting solvency pressure.

Established VR product foothold (Vive)

HTC's Vive franchise represents an enduring competitive asset: hardware, software and developer relationships create ecosystem effects that support recurring content and enterprise adoption. This structural position helps sustain revenue opportunities in consumer and B2B VR over months to years.

Diversified revenue streams beyond hardware

Multiple revenue lines—VR hardware, accessories, blockchain services, licensing and partnerships—reduce dependency on a single product cycle. Diversification smooths cash flow volatility and supports strategic pivots, enabling sustained investment in core VR offerings and software development.

Negative Factors

Declining revenue and weak operational performance

Sustained revenue decline and negative operating margins point to structural demand or cost issues. Persistent operational inefficiency reduces reinvestable cash, weakens competitive stamina, and can erode market position unless product mix or cost structure is meaningfully improved over the medium term.

Negative operating and free cash flows

Negative operating and free cash flows indicate the business is not generating sufficient cash from operations to fund capex or growth. Over months this constrains R&D, inventory funding and marketing, forcing reliance on external financing or asset sales and raising long-term liquidity risk.

Earnings quality volatility and low return on equity

Volatile margins and earnings driven by one-offs undermine the reliability of reported profits. Low ROE signals limited ability to convert equity into sustainable returns, which constrains capacity to attract capital or reinvest for durable product competitiveness over the next several quarters.

HTC Business Overview & Revenue Model

Company Description

HTC Corporation, together with its subsidiaries, designs, manufactures, assembles, processes, and sells smart mobile and virtual reality devices in Taiwan and internationally. The company provides marketing, repair, and after sales services; and online/download media services, as well as human resources management services. In addition, it is involved in the general investing activities; design, research, and development of application software and graphics technology; design and management of cloud synchronization technology; and development and sale of digital education platform, as well as development of virtual reality contents. Further, the company provides app stores for virtual reality, where customers can explore, create, connect, and experience the content; and medical and healthcare, 5G connectivity, and blockchain technologies. It provides its products through online. The company has an agreement with Fantasy 360 Technologies Inc. HTC Corporation was incorporated in 1997 and is headquartered in Taoyuan, Taiwan.

How the Company Makes Money

HTC generates revenue through several key streams. Primarily, the company makes money by selling its virtual reality headsets and related accessories, which cater to both consumers and enterprises. The HTC Vive series has established a strong foothold in the VR market, with revenue coming from direct sales and partnerships with game developers and content creators. Additionally, HTC has ventured into blockchain technology, offering services and products that facilitate digital transactions and secure data management, which contribute to its revenue. The company also engages in licensing agreements and collaborations with other tech firms, enabling it to monetize its intellectual property and technology innovations. These diverse revenue streams help HTC mitigate risks associated with fluctuating consumer electronic sales.

HTC Financial Statement Overview

Summary

Weak fundamentals overall: declining revenue, operational inefficiency (negative EBIT/EBITDA margins), and liquidity pressure from negative operating and free cash flow. Balance sheet leverage is manageable (D/E 0.36), but low ROE (7.15%) and cash flow weakness keep the score low.

Income Statement

HTC's income statement reveals significant challenges, with declining revenue and negative EBIT margins. The TTM data shows a revenue decline of 1.84% and a net profit margin of 52.51%, which is misleading due to extraordinary items. The company has struggled with consistent negative EBIT and EBITDA margins, indicating operational inefficiencies. Despite a positive net income in the TTM, the overall trajectory suggests instability in revenue and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.36 in the TTM, suggesting manageable leverage. However, the return on equity is low at 7.15%, indicating limited profitability from equity. The equity ratio is stable, but the company's financial health is affected by fluctuating debt levels and equity, reflecting potential risks in financial stability.

Cash Flow

HTC's cash flow statement highlights significant issues, with negative operating and free cash flows in the TTM. The free cash flow growth is negative, and the operating cash flow to net income ratio is -0.53, indicating cash flow challenges. The free cash flow to net income ratio is positive, but overall cash flow management appears weak, posing risks to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	3.08B	4.42B	4.41B	5.25B	5.81B
Gross Profit	1.15B	1.25B	1.82B	1.73B	1.64B	1.56B
EBITDA	8.63B	-2.82B	-2.82B	-2.88B	-2.55B	-5.38B
Net Income	5.76B	-3.42B	-3.40B	-3.41B	-3.10B	-6.02B
Balance Sheet
Total Assets	38.28B	46.23B	45.58B	46.44B	44.18B	45.07B
Cash, Cash Equivalents and Short-Term Investments	14.72B	24.88B	24.11B	24.83B	23.78B	26.09B
Total Debt	2.95B	15.27B	12.77B	9.59B	4.79B	1.05B
Total Liabilities	11.55B	24.80B	22.78B	20.88B	16.96B	15.11B
Stockholders Equity	26.73B	21.43B	22.81B	25.56B	27.22B	29.89B
Cash Flow
Free Cash Flow	-4.50B	-2.60B	-4.19B	-3.82B	-4.60B	-7.72B
Operating Cash Flow	-4.05B	-2.54B	-4.05B	-3.74B	-4.50B	-7.48B
Investing Cash Flow	8.88B	752.57M	-4.89B	-844.08M	1.54B	-4.48B
Financing Cash Flow	-12.49B	2.53B	3.29B	4.96B	3.83B	801.28M

HTC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.00
• 50DMA: Positive
• 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 DE:HTJ, the sentiment is Positive. The current price of 4 is below the 20-day moving average (MA) of 4.36, below the 50-day MA of 4.32, and below the 200-day MA of 4.68, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 54.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HTJ.

HTC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUM	69 Neutral	€641.30M	21.27	34.89%	4.15%	-33.50%	-6.00%
NA9	68 Neutral	€737.86M	16.51	24.22%	1.29%	5.63%	-7.19%
COK	65 Neutral	€726.43M	43.76	3.09%	3.78%	-0.61%	-52.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADV	56 Neutral	€1.16B	-39.18	―	2.37%	―	―
HTJ	48 Neutral	€1.02B	4.71	23.32%	―	-8.35%	―
CHG	45 Neutral	€629.43M	-26.67	-12.43%	―	51.05%	-242.58%