HTC (HTJ) AI Stock Analysis

• Market Cap: €982.19M
• Dividend Yield: N/A
• Average Volume (3M): 12.00
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.91
• Revenue Growth: -8.35%
• EPS Growth: N/A
• Country: DE
• Employees: 2,173
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.07
• Shares Outstanding: 208,990,520
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 12
• PEG Ratio: -0.02
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 11.04
• P/FCF Ratio: -7.20
• 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): 0.07
• Revenue Forecast (FY): €320.75M

• Rating: 47 Neutral
• Price Target: €3.50 ▼(-12.50% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down mainly by weak financial quality (sharp revenue contraction, deep operating losses, and sustained negative operating/free cash flow) and bearish technicals (price below all key moving averages with negative MACD). The primary offset is a low P/E that indicates potentially attractive valuation if fundamentals stabilize.

Positive Factors

Improved leverage and equity buffer

Leverage falling to roughly 0.12 materially reduces financial risk and interest burden, giving the company durable balance-sheet flexibility. A sizable equity base versus assets provides a cushion to absorb further shocks and supports strategic moves (M&A, restructuring, capex) over the medium term.

ROE rebound

A ~24% ROE rebound shows the firm can generate high returns on shareholder capital in at least one recent year, indicating potential operational improvements or capital efficiency. If sustained, higher ROE enhances internal funding capacity for investment and reduces need for external financing.

Ability to report large net profit

Reporting a very large net profit provides the company with strategic optionality: it can use earnings to de-lever, fund product development, or extend its cash runway. While volatility exists, the capacity to deliver positive bottom-line results can be a durable foundation for rebuilding operations if repeatable.

Negative Factors

Severe revenue decline

An ~85% revenue collapse severely undermines scale economics, pricing power and the company’s ability to absorb fixed costs. Persistent top-line deterioration reduces predictability of cash flows, limits investment capacity, and raises structural questions about market demand and competitive position.

Persistent cash burn

Negative operating and free cash flow across multiple years signals ongoing cash consumption, forcing reliance on financing, asset sales or equity raises. Chronic cash burn constrains R&D and go-to-market investment, increases refinancing risk, and threatens long-term viability without durable margin recovery.

Core operating losses

Materially negative EBIT/EBITDA despite moderate gross margins (~32%) indicates a structural cost mismatch: fixed costs and operating expenses exceed revenue capacity. This undermines sustainable profitability and competitive resilience until the company meaningfully rightsizes costs or restores revenue.

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.

HTC Financial Statement Overview

Summary

Financials are pressured by an ~85% revenue decline in 2025 and deeply negative EBIT/EBITDA margins. Persistent negative operating cash flow and free cash flow across all years (including 2025) signal ongoing cash burn, despite improved leverage (debt-to-equity ~0.12) and a large but volatile reported net profit.

Income Statement

Revenue has contracted sharply over the period (2025 revenue down ~85% year over year, following declines in 2024), signaling weak demand/scale. Profitability is highly volatile: despite a very large net profit in 2025 (net margin ~208%), core operations remain deeply loss-making with materially negative EBIT/EBITDA margins. Gross margin has been moderate (~32% in 2025 vs ~41% in 2023–2024), but persistent operating losses point to a cost structure that is not supported by the current revenue base.

Balance Sheet

Balance sheet leverage improved meaningfully in 2025, with debt-to-equity falling to ~0.12 from ~0.71 in 2024, and equity remains sizable versus total assets. Return on equity rebounded strongly in 2025 (~24%) after several years of negative returns, suggesting a notable earnings swing. The key weakness is consistency: prior-year losses and the abrupt profitability shift raise questions about the durability of returns despite the healthier leverage profile.

Cash Flow

Cash generation is a major concern: operating cash flow and free cash flow are negative across all years shown, including 2025 (operating cash flow about -4.3B; free cash flow about -4.7B). While free cash flow growth appears positive in 2024–2025 (improvement from more negative levels), the business is still consuming significant cash, and operating cash flow remains negative even in the year with strong reported net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.04B	3.08B	4.42B	4.41B	5.25B
Gross Profit	963.93M	1.25B	1.82B	1.73B	1.64B
EBITDA	-3.46B	-2.82B	-2.82B	-2.88B	-2.55B
Net Income	6.31B	-3.42B	-3.40B	-3.41B	-3.10B
Balance Sheet
Total Assets	38.40B	46.23B	45.58B	46.44B	44.18B
Cash, Cash Equivalents and Short-Term Investments	10.32B	24.88B	24.11B	24.83B	23.78B
Total Debt	3.24B	15.27B	12.77B	9.59B	4.79B
Total Liabilities	11.84B	24.80B	22.78B	20.88B	16.96B
Stockholders Equity	26.56B	21.43B	22.81B	25.56B	27.22B
Cash Flow
Free Cash Flow	-4.66B	-2.60B	-4.19B	-3.82B	-4.60B
Operating Cash Flow	-4.34B	-2.54B	-4.05B	-3.74B	-4.50B
Investing Cash Flow	6.09B	752.57M	-4.89B	-844.08M	1.54B
Financing Cash Flow	-12.60B	2.53B	3.29B	4.96B	3.83B

HTC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 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 is above the 20-day moving average (MA) of 3.75, below the 50-day MA of 4.09, and below the 200-day MA of 4.65, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 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	€613.53M	30.04	34.89%	4.15%	-33.50%	-6.00%
NA9	68 Neutral	€641.20M	7.63	25.95%	1.29%	5.63%	-7.19%
COK	65 Neutral	€707.52M	27.15	3.08%	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	-17.38	―	2.37%	―	―
HTJ	47 Neutral	€982.19M	5.31	23.71%	―	-8.35%	―
CHG	45 Neutral	€846.40M	-15.32	-10.26%	―	51.05%	-242.58%