Hotto Link, Inc. (3680) AI Stock Analysis

• Market Cap: ¥4.72B
• Dividend Yield: N/A
• Average Volume (3M): 931.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -15.90%
• EPS Growth: -388.21%
• Country: JP
• Employees: 140
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Infrastructure
• EPS (TTM): -6.67
• Shares Outstanding: 15,965,800
• 10 Day Avg. Volume: 601,760
• 30 Day Avg. Volume: 931,496
• PEG Ratio: 0.23
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -198.61
• 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

• Rating: 63 Neutral
• Price Target: ¥340.00 ▲(12.96%Upside)

The stock's overall score is primarily impacted by the financial performance challenges, including declining revenue and profitability. However, positive technical indicators provide some support, showing a stable short-term outlook. The negative P/E ratio and absence of dividend yield are detractors from the valuation perspective.

Hotto Link, Inc. Business Overview & Revenue Model

Company Description

Hotto Link, Inc. (3680) is a Japanese technology company specializing in social media and data analytics solutions. The company provides a range of services that enable businesses to leverage social media data for marketing, brand management, and customer engagement. Its core products include social media monitoring tools, data analysis platforms, and consulting services tailored to enhance digital strategies and improve business outcomes.

How the Company Makes Money

Hotto Link, Inc. generates revenue primarily through subscription fees for its social media analytics platforms and tools. The company offers various pricing tiers based on the level of service and data access required by the client. Additionally, Hotto Link earns income from consulting services, where it provides tailored strategies and insights to businesses looking to optimize their social media presence and digital marketing efforts. Partnerships with other tech firms and integration services also contribute to its revenue stream by expanding the reach and functionality of its products.

Hotto Link, Inc. Financial Statement Overview

Summary

Hotto Link, Inc. is facing significant challenges in revenue and profit growth, as evidenced by declining income statement metrics. While the balance sheet remains robust with a strong equity position, cash flow concerns and negative growth trends need to be addressed to ensure long-term stability and profitability.

Income Statement

The company has experienced a significant decline in revenue from 2022 to 2024, with a negative revenue growth rate of -46% in 2023 and -10% in 2024. Its net profit margin has also turned negative in 2024, indicating a challenging profitability environment. Despite past profitability in 2022 and 2023, the recent decline in EBIT and EBITDA margins highlights operational challenges.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 74% in 2024, reflecting financial stability. The debt-to-equity ratio remains low, indicating manageable leverage. However, the return on equity has turned negative in 2024 due to net losses, which is a concern for shareholders.

Cash Flow

Operating cash flow has declined from 2023 to 2024, with a negative trend in free cash flow growth. Despite this, the company has managed to maintain a positive operating cash flow to net income ratio, supported by strong cash reserves. However, the negative free cash flow growth poses a risk if the trend continues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.02B	4.27B	4.74B	7.91B	6.57B	4.39B
	Gross Profit
1.26B	1.29B	1.57B	2.16B	2.16B	1.61B
	EBIT
-133.22M	-91.00M	243.00M	2.11B	356.00M	-25.81M
	EBITDA
-125.82M	-40.26M	699.00M	2.74B	1.48B	361.65M
	Net Income Common Stockholders
-755.30M	-564.63M	226.00M	1.82B	764.29M	18.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.07B	3.30B	3.50B	3.60B	2.60B	2.07B
	Total Assets
7.54B	7.87B	8.49B	8.47B	7.31B	5.77B
	Total Debt
927.64M	978.25M	1.18B	1.35B	1.61B	1.54B
	Net Debt
-2.14B	-2.32B	-2.31B	-2.24B	-990.75M	-522.60M
	Total Liabilities
1.93B	2.02B	2.35B	2.52B	3.18B	2.80B
	Stockholders Equity
5.61B	5.86B	6.14B	5.95B	3.87B	2.79B
Cash Flow		Free Cash Flow
-29.93M	-105.47M	688.00M	478.36M	403.90M	180.62M
	Operating Cash Flow
74.19M	295.60M	698.00M	793.56M	678.71M	466.43M
	Investing Cash Flow
-499.13M	-432.91M	-716.00M	-291.06M	-536.01M	-342.14M
	Financing Cash Flow
-199.02M	-193.11M	-154.00M	375.77M	307.87M	255.90M

Hotto Link, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 301.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3680, the sentiment is Positive. The current price of 301 is below the 20-day moving average (MA) of 311.65, above the 50-day MA of 274.20, and above the 200-day MA of 281.82, indicating a neutral trend. The MACD of 7.76 indicates Positive momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 24.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3680.

Hotto Link, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4178	73 Outperform	¥3.05B	30.26		―	0.81%	54.06%
3858	71 Outperform	¥4.14B	42.66		―	18.96%	195.08%
4378	68 Neutral	¥2.11B	86.11		―	4.33%	-248.75%
3680	63 Neutral	¥4.72B	―		―	-15.90%	-388.21%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
4288	54 Neutral	¥1.98B	―		―	13.99%	-47.91%
6662	45 Neutral	¥3.46B	―		―	6.87%	4.96%