HTC (HTJ) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 12.00
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.06
• 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: 208,834,990
• 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: 0.75
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 0.73
• Enterprise Value/Ebitda: 0.10
• 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: 53 Neutral
• Price Target: €4.50 ▲(4.17% Upside)

HTC's overall stock score of 53 reflects significant financial challenges, particularly in cash flow and profitability, which are the most impactful factors. Technical analysis provides mixed signals, with bearish momentum offset by neutral RSI and Stochastic indicators. The stock's low P/E ratio suggests potential undervaluation, but the lack of dividend yield and earnings call data limits further insights.

Positive Factors

Market Position in VR

HTC's strong position in the VR market with the Vive series indicates a durable competitive advantage and potential for future growth in a rapidly expanding industry.

Diverse Revenue Streams

HTC's diverse revenue streams, including VR, blockchain, and licensing, help mitigate risks associated with single-market dependency, supporting long-term stability.

Blockchain Technology Engagement

HTC's involvement in blockchain technology positions it well in the emerging digital asset market, potentially opening new revenue channels and enhancing its tech portfolio.

Negative Factors

Declining Revenue

The decline in revenue suggests challenges in maintaining market share and sales growth, which could impact long-term profitability and operational sustainability.

Negative Cash Flows

Negative cash flows indicate liquidity challenges, which could constrain HTC's ability to invest in growth opportunities and manage financial obligations effectively.

Operational Inefficiencies

Operational inefficiencies, as evidenced by negative EBIT and EBITDA margins, highlight the need for HTC to optimize its operations to improve profitability and competitive positioning.

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

HTC's financial performance is challenged by declining revenue growth and operational inefficiencies, as indicated by a negative EBIT margin. Despite a strong net profit margin, cash flow issues persist, and the balance sheet shows moderate leverage but low return on equity.

Income Statement

HTC's income statement reveals a challenging financial landscape. The company experienced a decline in revenue growth with a negative rate of -2.24% in the TTM period. Despite a strong net profit margin of 52.51% in the TTM, the EBIT margin is negative, indicating operational inefficiencies. The gross profit margin remains moderate at 38.84%, but the volatility in revenue and profitability metrics suggests instability.

Balance Sheet

HTC's balance sheet shows a moderate debt-to-equity ratio of 0.36 in the TTM, indicating manageable leverage. However, the return on equity is relatively low at 7.15%, reflecting limited profitability from shareholders' investments. The equity ratio stands at 57.42%, suggesting a stable capital structure, but the company's financial health could be at risk if profitability does not improve.

Cash Flow

HTC's cash flow statement highlights significant challenges, with negative operating cash flow and free cash flow in the TTM. The free cash flow growth rate is positive at 56.50%, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is above 1, suggesting that despite profitability, cash generation remains a concern.

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: Negative
• Last Price: 4.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HTJ, the sentiment is Negative. The current price of 4.32 is below the 20-day moving average (MA) of 4.47, below the 50-day MA of 4.61, and below the 200-day MA of 4.63, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€730.52M	24.13	34.89%	4.13%	-33.50%	-6.00%
NA9	68 Neutral	€961.42M	19.65	24.22%	1.29%	5.63%	-7.19%
COK	65 Neutral	€884.01M	51.15	3.09%	3.58%	-0.61%	-52.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADV	56 Neutral	€1.13B	-38.48	―	2.37%	―	―
HTJ	53 Neutral	$1.12B	5.47	23.32%	―	-8.35%	―
CHG	45 Neutral	€879.78M	-37.99	-12.43%	―	51.05%	-242.58%

HTC Corporate Events

HTC Corp Reports Strong Turnaround in 2025 Earnings

HTC Corporation, a prominent player in the technology sector, is known for its innovative designs and manufacturing of virtual reality and smart mobile devices. The company is headquartered in Taiwan and operates globally, providing cutting-edge technology solutions.