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HeartCore Enterprises, Inc. (HTCR)
NASDAQ:HTCR
US Market

HeartCore Enterprises, Inc. (HTCR) AI Stock Analysis

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HeartCore Enterprises, Inc.

(NASDAQ:HTCR)

Rating:47Neutral
Price Target:
$0.50
▼(-3.85%Downside)
HeartCore Enterprises' overall stock score is impacted most significantly by financial instability characterized by declining revenues and negative profit margins. Technical indicators reflect bearish sentiment, further weighing on the score. The high dividend yield offers some valuation appeal, while recent corporate events present mixed signals with strategic growth plans countered by compliance challenges.

HeartCore Enterprises, Inc. (HTCR) vs. SPDR S&P 500 ETF (SPY)

HeartCore Enterprises, Inc. Business Overview & Revenue Model

Company DescriptionHeartCore Enterprises, Inc. (HTCR) is a company that specializes in providing software solutions and digital transformation services. Operating primarily in the technology sector, the company focuses on offering a range of products and services designed to enhance business operations and customer engagement. Its core offerings include enterprise software solutions, customer experience management platforms, and digital transformation consulting services. HeartCore aims to support businesses in optimizing their operations and improving customer interactions through innovative technology solutions.
How the Company Makes MoneyHeartCore Enterprises, Inc. generates revenue through the sale of its enterprise software solutions and digital transformation services. The company's key revenue streams include licensing fees from its software products, subscription fees for its customer experience management platforms, and consulting fees for its digital transformation services. Additionally, HeartCore may engage in strategic partnerships and collaborations with other technology firms to expand its market reach and enhance its service offerings, which can contribute to its earnings. By providing comprehensive technology solutions tailored to the needs of various industries, HeartCore aims to maintain a steady stream of income from its diverse client base.

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
45
Neutral
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
40
Negative
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.95M30.41M21.85M8.82M10.82M9.03M
Gross Profit16.90M17.83M8.07M3.35M5.19M4.02M
EBITDA-4.37M-4.46M-4.16M-6.55M170.40K399.69K
Net Income-3.24M-1.48M-4.19M-6.68M-327.04K150.96K
Balance Sheet
Total Assets10.22M13.97M19.62M12.14M9.12M10.36M
Cash, Cash Equivalents and Short-Term Investments2.99M6.62M1.95M7.18M3.14M3.06M
Total Debt2.44M3.78M4.89M4.55M6.19M8.49M
Total Liabilities9.62M10.50M11.96M7.33M9.68M11.42M
Stockholders Equity1.84M4.65M5.17M4.81M-558.95K-1.41M
Cash Flow
Free Cash Flow-7.52M-4.78M-4.86M-4.87M730.15K718.58K
Operating Cash Flow-7.52M-4.77M-4.33M-4.81M766.30K745.75K
Investing Cash Flow6.81M6.35M-1.78M-12.20K-179.03K-401.15K
Financing Cash Flow320.90K-318.65K136.19K8.92M-257.35K2.06M

HeartCore Enterprises, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.52
Price Trends
50DMA
0.57
Negative
100DMA
0.82
Negative
200DMA
1.05
Negative
Market Momentum
MACD
-0.02
Negative
RSI
39.30
Neutral
STOCH
41.45
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 0.52 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.57, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 39.30 is Neutral, neither overbought nor oversold. The STOCH value of 41.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTCR.

HeartCore Enterprises, Inc. Risk Analysis

HeartCore Enterprises, Inc. disclosed 66 risk factors in its most recent earnings report. HeartCore Enterprises, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The value of the equity rights we receive from our GO IPO clients could be volatile, lose value, and even become worthless. Q4, 2023
2.
We provide consulting services and ultimately do not control our client's abilities to go public in the United States or secure a listing on American stock exchanges. Q4, 2023
3.
Our GO IPO business assists companies in navigating the initial public offering process in the US markets. We do not provide investment, accounting, or legal advice. If state or federal regulatory agency determined our Company provided legal or investment advice in violation of existing law, there could be a material adverse effect on our business operations and stock value. Q4, 2023

HeartCore Enterprises, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
£571.22M24.45-6.00%2.40%3.52%-29.29%
52
Neutral
$9.64M-66.08%3125.00%98.06%
47
Neutral
3.64-111.94%15.53%59.42%58.65%
TGTGL
42
Neutral
$4.00M-8.88%-96.03%95.03%
VSVS
39
Underperform
$10.83M-34.07%-78.87%85.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HTCR
HeartCore Enterprises, Inc.
0.49
-0.20
-28.99%
VERB
Verb Technology Company
6.86
-17.84
-72.23%
VS
Versus Systems
2.33
1.01
76.52%
TGL
Treasure Global, Inc.
1.10
-139.90
-99.22%

HeartCore Enterprises, Inc. Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
HeartCore Enterprises Secures $25M Equity Purchase Agreement
Positive
Jul 1, 2025

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.

Business Operations and Strategy
HeartCore Enterprises Secures 15th Go IPO Consulting Win
Positive
Jun 3, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
HeartCore Faces Nasdaq Non-Compliance Notice
Negative
May 27, 2025

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
HeartCore Faces Nasdaq Listing Compliance Challenge
Negative
May 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025