Heart Test Laboratories, Inc. (HSCS) AI Stock Analysis

• Market Cap: $6.49M
• Dividend Yield: N/A
• Average Volume (3M): 34.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -66.40%
• EPS Growth: 65.99%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -1.74
• Shares Outstanding: 2,647,712
• 10 Day Avg. Volume: 38,350
• 30 Day Avg. Volume: 34,976
• PEG Ratio: <0.01
• Price to Book (P/B): 16.05
• Price to Sales (P/S): 757.08
• P/FCF Ratio: -0.44
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 2.74
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: $10.50
• Price Target Upside: 205.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -5.17
• Revenue Forecast (FY): $50.00K

• Rating: 39 Underperform
• Price Target: $2.50 ▼(-27.33% Downside)

Heart Test Laboratories, Inc. is experiencing significant financial difficulties, with substantial losses and high leverage, which heavily impacts its overall stock score. The technical analysis indicates a bearish trend, further weighing down the score. The negative P/E ratio and lack of dividend yield reflect poor valuation metrics. These factors collectively result in a low overall stock score.

Positive Factors

Innovative Product Offering

The company's focus on advanced diagnostic tools and non-invasive heart testing methods positions it well in the growing healthcare technology sector.

Recurring Revenue Streams

Recurring revenue from subscriptions provides a stable income stream, enhancing financial predictability and supporting long-term growth.

Strategic Partnerships

Collaborations expand market reach and product accessibility, potentially driving revenue growth and strengthening market position.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially limiting operational flexibility and impacting long-term financial health.

Negative Cash Flows

Persistent negative cash flows suggest operational inefficiencies, challenging the company's ability to sustain operations without external financing.

Declining Revenue

A declining revenue trend undermines growth prospects and may hinder the company's ability to invest in innovation and market expansion.

Heart Test Laboratories, Inc. Business Overview & Revenue Model

Company Description

Heart Test Laboratories, Inc. (HSCS) specializes in innovative cardiac testing solutions that enhance the accuracy of heart disease diagnosis and management. Operating within the healthcare sector, the company develops and provides advanced diagnostic tools and technology, focusing on non-invasive heart testing methods. Their core products include state-of-the-art diagnostic devices and software that assist healthcare professionals in assessing cardiovascular health effectively.

How the Company Makes Money

Heart Test Laboratories, Inc. generates revenue primarily through the sale of its diagnostic devices and associated software solutions to hospitals, clinics, and other healthcare facilities. Additionally, the company may offer subscription-based services for software updates and data management, creating recurring revenue streams. Partnerships with healthcare providers and insurance companies are crucial, as they facilitate broader access to HSCS's products and services, enhancing market reach. Revenue is also bolstered by potential licensing agreements and collaborations with research institutions for the development of new technologies.

Heart Test Laboratories, Inc. Financial Statement Overview

Summary

Heart Test Laboratories, Inc. is facing significant financial challenges across all verticals. The income statement reflects substantial losses and declining revenue, while the balance sheet shows high leverage and low equity. Cash flow analysis indicates negative cash flows and declining cash generation. The company needs to address its operational inefficiencies and financial structure to improve its financial health and stability.

Income Statement

Heart Test Laboratories, Inc. shows significant challenges in its income statement. The company has experienced a dramatic decline in revenue, with a negative revenue growth rate in recent years. Gross profit margins have been inconsistent, and the net profit margin is significantly negative, indicating substantial losses. The EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The company's return on equity is negative, suggesting that it is not generating profit from its equity base. The equity ratio is low, which could imply vulnerability to financial instability. Overall, the balance sheet shows a company struggling with high debt levels and low equity.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is somewhat aligned with reported losses. However, the operating cash flow coverage ratio is negative, highlighting the company's inability to cover its net income with operating cash flow. The free cash flow growth rate is also negative, pointing to declining cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.90M	4.35K	18.60K	5.15K	14.37K	25.60K
Gross Profit	1.18M	2.47K	12.52K	2.35K	6.48K	14.94K
EBITDA	-1.99B	-8.14M	-6.16M	-6.08M	-4.43M	-2.29M
Net Income	-2.54B	-8.77M	-6.61M	-490.85M	-4.58M	-2.58M
Balance Sheet
Total Assets	6.44B	4.22M	9.50M	3.29M	2.09M	1.93M
Cash, Cash Equivalents and Short-Term Investments	2.79B	1.10M	5.81M	1.66M	918.26K	723.48K
Total Debt	1.95B	2.99M	1.04M	1.57M	6.16M	3.08M
Total Liabilities	3.30M	4.02M	2.19M	3.06M	8.15M	3.84M
Stockholders Equity	3.14M	205.17K	7.32M	230.56K	-6.06M	-1.91M
Cash Flow
Free Cash Flow	-6.16B	-7.44M	-6.20M	-5.79M	-3.65M	-2.45M
Operating Cash Flow	-1.96B	-7.41M	-6.07M	-5.77M	-3.64M	-2.45M
Investing Cash Flow	-843.36K	-30.19K	-125.27K	-18.31K	-1.93K	-712.00
Financing Cash Flow	3.65B	2.73M	10.34M	6.53M	3.84M	2.68M

Heart Test Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.44
• 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 HSCS, the sentiment is Negative. The current price of 3.44 is above the 20-day moving average (MA) of 2.82, above the 50-day MA of 3.21, and above the 200-day MA of 3.42, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 52.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSCS.

Heart Test Laboratories, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PAVM	48 Neutral	$10.04M	0.32	20.03%	―	-99.28%	-46.16%
SSKN	44 Neutral	$9.66M	-0.61	-207.19%	―	-5.19%	-0.81%
TNON	44 Neutral	$10.39M	-0.20	-197.26%	―	-2.47%	91.23%
AMIX	40 Underperform	$5.63M	-0.14	-352.39%	―	―	63.87%
HSCS	39 Underperform	$6.49M	―	-193.24%	―	-66.40%	65.99%
BMRA	38 Underperform	$7.12M	-1.62	-69.61%	―	-11.31%	47.64%

Heart Test Laboratories, Inc. Corporate Events

Heart Test Laboratories Announces Successful Regulation A Offering

Heart Test Laboratories, Inc. announced that on September 26, 2025, it entered into Amendment No. 7 to its Loan Agreement with Front Range Ventures LLC, extending the maturity date of its promissory note to September 30, 2026. The company also disclosed a Regulation A Offering, which as of October 1, 2025, has generated $6.7 million in gross proceeds, resulting in the issuance of 1,912,383 units. Additionally, a debt exchange was conducted, reducing the principal and accrued interest by exchanging $2,060,000 in principal and $45,000 in accrued interest for shares of common stock.

The most recent analyst rating on (HSCS) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Heart Test Laboratories, Inc. stock, see the HSCS Stock Forecast page.

Heart Test Laboratories Regains Nasdaq Compliance

On September 16, 2025, HeartSciences Inc. announced that it has regained compliance with Nasdaq’s Minimum Stockholders’ Equity Requirement, following a previous notice of non-compliance. The company had submitted a plan to Nasdaq to regain compliance and was granted an extension, which has now led to the closure of the matter by Nasdaq.

The most recent analyst rating on (HSCS) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Heart Test Laboratories, Inc. stock, see the HSCS Stock Forecast page.