HeartCore Enterprises, Inc. (HTCR) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 8.06%
• Average Volume (3M): 113.73K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.22
• Revenue Growth: 59.42%
• EPS Growth: 58.65%
• Country: US
• Employees: 91
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): -0.14
• Shares Outstanding: 22,075,333
• 10 Day Avg. Volume: 79,384
• 30 Day Avg. Volume: 113,733
• PEG Ratio: 0.03
• Price to Book (P/B): 5.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: -0.91
• 1Y Price Target: $0.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $0.50 ▲(0.00%Upside)

HeartCore Enterprises, Inc. faces significant financial and operational challenges, reflected in its weak financial performance and negative technical indicators. While the high dividend yield and strategic consulting agreements are positive, they are overshadowed by compliance risks and negative valuation metrics. The company's ability to address financial instability and regain Nasdaq compliance will be crucial for future improvement.

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 the sale of its software products and services. The company offers its solutions via licensing models, where clients pay for the right to use its software. Additionally, HeartCore provides ongoing support and maintenance services, which serve as recurring revenue streams. The company may also engage in strategic partnerships and collaborations that expand its market reach and product offerings, contributing to its revenue growth. Key factors influencing its earnings include the adoption rate of digital solutions by enterprises, customer retention, and the ability to innovate and meet evolving market demands.

HeartCore Enterprises, Inc. Financial Statement Overview

Summary

HeartCore Enterprises, Inc. faces challenges with declining revenues and consistently negative profit margins. The balance sheet reveals high leverage and low equity ratios, suggesting financial instability. Cash flow statements indicate ongoing cash outflows, though liquidity is maintained through investment activities. The company needs to address operational inefficiencies and improve revenue growth for financial health.

Income Statement

The company shows a declining revenue trend with TTM (Trailing-Twelve-Months) revenue decreasing from $30.41M in 2024 to $28.95M. Gross Profit Margin stands at 58.39%, indicating efficient cost management, but Net Profit Margin is negative due to consistent net losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company has a high Debt-to-Equity Ratio of 1.33, indicating significant leverage. The Equity Ratio is low, highlighting potential solvency risks. Return on Equity is negative due to net losses, further stressing financial instability. Overall, the balance sheet shows weakness in equity strength and high leverage.

Cash Flow

Operating Cash Flow is negative, indicating cash outflows from core operations. Free Cash Flow is also negative, with a Free Cash Flow to Net Income Ratio indicating inefficiencies in cash generation relative to net losses. However, cash reserves and positive investing cash flows suggest some liquidity management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.41M	21.85M	8.82M	10.82M	9.03M
Gross Profit	17.83M	8.07M	3.35M	5.19M	4.02M
EBITDA	-4.46M	-4.16M	-6.55M	170.40K	399.69K
Net Income	-1.48M	-4.19M	-6.68M	-327.04K	150.96K
Balance Sheet
Total Assets	13.97M	19.62M	12.14M	9.12M	10.36M
Cash, Cash Equivalents and Short-Term Investments	6.62M	1.95M	7.18M	3.14M	3.06M
Total Debt	3.78M	4.89M	4.55M	6.19M	8.49M
Total Liabilities	10.50M	11.96M	7.33M	9.68M	11.42M
Stockholders Equity	4.65M	5.17M	4.81M	-558.95K	-1.41M
Cash Flow
Free Cash Flow	-4.78M	-4.86M	-4.87M	730.15K	718.58K
Operating Cash Flow	-4.77M	-4.33M	-4.81M	766.30K	745.75K
Investing Cash Flow	6.35M	-1.78M	-12.20K	-179.03K	-401.15K
Financing Cash Flow	-318.65K	136.19K	8.92M	-257.35K	2.06M

HeartCore Enterprises, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTCR, the sentiment is Neutral. The current price of 0.5 is above the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.54, and below the 200-day MA of 1.03, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 82.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HTCR.

HeartCore Enterprises, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥227.94B	14.57	7.50%	2.72%	9.28%	6.70%
VERB	66 Neutral	$12.95M	―	-66.08%	―	3125.00%	98.06%
HTCR	48 Neutral		3.64	-111.94%	8.06%	59.42%	58.65%
MRIN	45 Neutral	$2.86M	―	-91.75%	―	-9.89%	47.46%
VS	39 Underperform	$13.48M	―	-34.07%	―	-78.87%	85.62%
AUUD	―	$2.64M	―	-296.03%	―	―	―
TGL	38 Underperform	$4.26M	―	-8.88%	―	-96.03%	95.03%

HeartCore Enterprises, Inc. Corporate Events

HeartCore Secures Extension for Nasdaq Compliance Plan

HeartCore Enterprises, Inc. faced non-compliance with Nasdaq’s minimum stockholders’ equity requirement as of May 24, 2025, and was given until July 8, 2025, to submit a compliance plan. The company secured an extension to meet the requirement by September 30, 2025, through financing transactions, including an Equity Purchase Agreement and a Securities Purchase Agreement with Crom Structured Opportunities Fund I, LP. These agreements involve the potential issuance of up to $25 million in common stock and the sale of Series A Convertible Preferred Stock, respectively. Despite these efforts, the company’s compliance with Nasdaq’s requirements remains uncertain.

HeartCore Enterprises Secures Consulting Deal with Cipher Core

On July 2, 2025, HeartCore Enterprises, Inc. announced a consulting agreement with Cipher Core Co., Ltd. for its Go IPO consulting services, marking its 16th such contract. This agreement reflects the growing interest among Japanese companies in U.S. listings despite a challenging IPO market. HeartCore will assist Cipher Core in its Nasdaq listing process, offering services such as document translation and accounting data conversion. The deal, valued at $500,000 in fees plus a warrant for 3% of Cipher Core’s stock, underscores HeartCore’s strategic positioning in facilitating U.S. IPOs for Asia-Pacific companies.

HeartCore Enterprises Secures $25M Equity Purchase Agreement

On June 30, 2025, HeartCore Enterprises, Inc. entered into an Equity Purchase Agreement and a Securities Purchase Agreement with Crom Structured Opportunities Fund I, LP, allowing HeartCore to sell up to $25 million in common stock and issue 2,000 shares of Series A Convertible Preferred Stock for $2 million. This strategic financing aims to support HeartCore’s software growth initiatives and M&A strategy, while also ensuring compliance with Nasdaq’s equity requirements. The agreements include customary conditions and restrictions, with proceeds intended to enhance HeartCore’s market positioning by targeting companies with recurring revenue and AI capabilities.

HeartCore Enterprises Secures 15th Go IPO Consulting Win

On May 30, 2025, HeartCore Enterprises, Inc. entered into a Consulting and Services Agreement with tmsuk Co. Ltd., a Japanese corporation, to assist in tmsuk’s efforts to go public and list on the Nasdaq Stock Market. This agreement marks HeartCore’s 15th Go IPO consulting service win, reflecting steady interest in their services despite IPO market uncertainties. HeartCore will provide various services including assistance with legal and audit firm selection, document translation, and accounting data conversion. Compensation for these services includes $500,000 in fees and a warrant for 3% of tmsuk’s capital stock, subject to shareholder approval. The agreement highlights HeartCore’s strategic positioning in the market and its ongoing expansion efforts, including plans to host a Go IPO seminar in South Korea in September 2025.

HeartCore Faces Nasdaq Non-Compliance Notice

On May 24, 2025, HeartCore Enterprises, Inc. received a notice from Nasdaq indicating non-compliance with the $2,500,000 minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. The company has until July 8, 2025, to submit a compliance plan, with potential extensions until November 20, 2025. The noncompliance notice does not immediately affect the trading of the company’s stock, but there is no assurance of regaining compliance.

HeartCore Faces Nasdaq Listing Compliance Challenge

On May 6, 2025, HeartCore Enterprises, Inc. received a notice from the Nasdaq Listing Qualifications Department indicating noncompliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market. This notification does not immediately affect the trading of the company’s stock, and HeartCore is considering its options to address the issue. The company has until November 3, 2025, to regain compliance, with a potential extension if certain conditions are met. However, there is no assurance that compliance will be regained.