HeartCore Enterprises, Inc. (HTCR) AI Stock Analysis

• Market Cap: $8.70M
• Dividend Yield: 41.26%
• Average Volume (3M): 449.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -51.26%
• EPS Growth: -319.52%
• Country: US
• Employees: 91
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 25,419,807
• 10 Day Avg. Volume: 529,066
• 30 Day Avg. Volume: 449,340
• PEG Ratio: 0.39
• Price to Book (P/B): 8.19
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -7.97
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: -0.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.42 ▲(24.12% Upside)

HeartCore Enterprises, Inc. has a low overall stock score due to significant financial challenges, including declining revenue and profitability, and negative cash flows. Technical indicators suggest bearish momentum. However, strategic corporate events, such as the sale of a subsidiary and a significant dividend declaration, provide some positive outlook. The high dividend yield may attract investors despite the company's financial struggles.

Positive Factors

Strategic Divestiture

The sale of HeartCore Japan allows the company to focus on its more profitable financial consulting services, potentially enhancing long-term shareholder value.

Debt Reduction

Reduced leverage indicates improved financial health, providing more flexibility for future investments and operations.

Dividend Declaration

The significant dividend reflects a commitment to returning value to shareholders, potentially boosting investor confidence and attracting income-focused investors.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in market demand or competitive positioning, which could impact long-term growth and profitability.

Negative Cash Flows

Negative cash flows highlight operational inefficiencies and may limit the company's ability to invest in growth opportunities or meet financial obligations.

Profitability Challenges

Deteriorating profit margins suggest cost management issues and could hinder the company's ability to achieve sustainable profitability.

HeartCore Enterprises, Inc. Business Overview & Revenue Model

Company Description

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also provides data analytics services that allow enterprise businesses to create web experiences for their clients. In addition, it operates a digital transformation business that provides customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. The company was founded in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HeartCore Enterprises, Inc. generates revenue through multiple key streams. Primarily, the company earns income from the sale of its health monitoring devices and related accessories, which are marketed directly to consumers via its e-commerce platform and through retail partnerships. Additionally, HTCR offers subscription-based services for its mobile applications, providing users with premium features and personalized health insights. The company also benefits from collaborations with health-focused organizations and research institutions, which contribute to product development and innovation, enhancing its market reach and brand credibility. Advertising and affiliate marketing on its digital platforms further augment its revenue, creating a multifaceted approach to generating income.

HeartCore Enterprises, Inc. Financial Statement Overview

Summary

HeartCore Enterprises, Inc. faces significant financial challenges, with declining revenue and profitability, negative cash flows, and ongoing losses impacting return on equity. While leverage has improved, the company must address its revenue decline and improve operational efficiency to enhance financial stability and performance.

Income Statement

HeartCore Enterprises, Inc. has experienced a significant decline in revenue, with a TTM revenue growth rate of -50.16%. The gross profit margin has decreased from 58.63% in 2024 to 36.29% in the TTM period, indicating reduced profitability. The net profit margin has also worsened, moving from -4.87% in 2024 to -73.58% in the TTM period. These metrics suggest challenges in maintaining revenue and controlling costs, impacting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from 0.81 in 2024 to 0.04 in the TTM period, indicating reduced leverage. However, the return on equity remains negative at -262.95%, reflecting ongoing losses. The equity ratio is stable at 38.92%, suggesting a reasonable level of equity financing relative to total assets. Despite improvements in leverage, profitability remains a concern.

Cash Flow

Operating cash flow and free cash flow are both negative, with a TTM free cash flow growth rate of -28.51%. The operating cash flow to net income ratio is -0.47, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is closely aligned with net income, albeit negative. Cash flow management remains a critical issue for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.77M	30.41M	21.85M	8.82M	10.82M	9.03M
Gross Profit	5.36M	17.83M	8.07M	3.35M	5.19M	4.02M
EBITDA	-14.35M	-4.46M	-4.16M	-6.55M	163.53K	399.69K
Net Income	-10.81M	-1.48M	-4.19M	-6.68M	-338.16K	150.96K
Balance Sheet
Total Assets	13.34M	13.97M	19.62M	12.14M	9.12M	10.36M
Cash, Cash Equivalents and Short-Term Investments	4.35M	6.62M	1.95M	7.18M	3.14M	3.06M
Total Debt	946.72K	3.78M	4.89M	4.55M	6.19M	8.49M
Total Liabilities	9.51M	10.50M	11.96M	7.33M	9.68M	11.42M
Stockholders Equity	5.19M	4.65M	5.17M	4.81M	-558.95K	-1.41M
Cash Flow
Free Cash Flow	-4.26M	-4.78M	-4.86M	-4.87M	730.15K	718.58K
Operating Cash Flow	-4.26M	-4.77M	-4.33M	-4.81M	766.30K	745.75K
Investing Cash Flow	4.81M	6.35M	-1.78M	-12.20K	-179.03K	-401.15K
Financing Cash Flow	1.21M	-318.65K	136.19K	8.92M	-257.35K	2.06M

HeartCore Enterprises, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTCR, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.54, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 32.76 is Neutral, neither overbought nor oversold. The STOCH value of 50.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTCR.

HeartCore Enterprises, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HTCR	45 Neutral	$8.70M	-0.65	-5.71%	41.26%	-51.26%	-319.52%
CXAI	45 Neutral	$11.09M	-0.58	-80.59%	―	-27.47%	83.06%
TGL	40 Underperform	$10.72M	-0.06	-269.14%	―	-73.83%	98.11%

HeartCore Enterprises, Inc. Corporate Events

HeartCore Enterprises Granted Nasdaq Listing Extension

On November 10, 2025, HeartCore Enterprises, Inc. announced it received an additional 180-day extension from the Nasdaq Listing Qualifications Department to meet the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market. The extension, which lasts until May 1, 2026, has no immediate effect on the company’s stock listing status, but failure to comply could lead to delisting. HeartCore is considering actions such as a reverse stock split to regain compliance, though no decisions have been made yet.

HeartCore Enterprises Sells Subsidiary to Volaris Group

On October 31, 2025, HeartCore Enterprises, Inc. announced the sale of its subsidiary, HeartCore Japan, to Volaris Group for approximately ¥1.8 billion yen, equivalent to about USD $12 million. This strategic divestiture allows HeartCore to focus on its Go IPO consulting business, as the company adapts to the evolving competitive landscape influenced by generative AI. The sale is part of HeartCore’s broader strategy to exit its software business activities and concentrate on its highly profitable financial consulting services. The company also plans to distribute a portion of the sale proceeds to shareholders and is exploring options to divest its interest in Sigmaways, Inc. HeartCore anticipates that these moves will enable it to drive sustainable, long-term value for its shareholders.

HeartCore Enterprises Announces Stockholder Distribution Update

On October 29, 2025, HeartCore Enterprises, Inc. clarified that a previously announced one-time payment to stockholders of $0.13 per share, initially described as a dividend, will be classified as a distribution for U.S. federal tax purposes. The record date for this distribution is November 10, 2025, and the payment date is expected to be November 17, 2025. This distribution represents approximately 16.8% of the company’s stock price as of October 27, 2025, potentially impacting stockholder returns and market perception.

HeartCore Declares Significant One-Time Dividend

On October 19, 2025, HeartCore Enterprises, Inc. declared a one-time dividend of $0.13 per share on its common stock, representing approximately 17.8% of the company’s stock price as of October 17, 2025. The dividend, deemed in the best interest of the company and its stockholders, will be payable on November 17, 2025, to stockholders of record as of November 10, 2025. This move reflects HeartCore’s strong financial profile and may lead to future quarterly dividends, subject to board approval.

HeartCore Enterprises Holds Virtual Annual Meeting

On September 26, 2025, HeartCore Enterprises, Inc. conducted its virtual annual meeting of stockholders, where five directors were elected to the board for a one-year term. Additionally, the stockholders ratified the appointment of MaloneBailey, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.