Hotto Link, Inc. (3680) AI Stock Analysis

• Market Cap: ¥4.17B
• Dividend Yield: 1.13%
• Average Volume (3M): 238.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -22.88%
• EPS Growth: -441.25%
• Country: JP
• Employees: 140
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -7.96
• Shares Outstanding: 15,965,800
• 10 Day Avg. Volume: 211,960
• 30 Day Avg. Volume: 238,273
• PEG Ratio: 0.02
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 12.97
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥277.00 ▲(7.36% Upside)

The overall stock score reflects significant financial performance challenges, particularly in revenue and profit growth. Technical analysis indicates bearish momentum, and valuation concerns are highlighted by a negative P/E ratio. The modest dividend yield provides limited support. The absence of earnings call data and corporate events means these factors do not influence the score.

Hotto Link, Inc. Business Overview & Revenue Model

Company Description

Hotto Link, Inc. (3680) is a prominent Japanese company specializing in digital marketing and big data analytics. The firm operates primarily in the technology sector, focusing on providing innovative solutions that leverage data to enhance marketing strategies for businesses. Key offerings include social media analysis, data-driven marketing services, and AI-driven solutions designed to optimize customer engagement and improve overall campaign performance.

How the Company Makes Money

Hotto Link generates revenue through a combination of service fees and subscription models associated with its digital marketing and analytics platforms. The primary revenue streams include consulting services for data analysis, software licensing for proprietary tools, and performance-based marketing solutions. Additionally, the company may form strategic partnerships with other technology firms and brands to expand its service offerings and reach new client segments, which can enhance its earnings potential.

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	3.71B	4.27B	4.74B	7.91B	6.57B	4.39B
Gross Profit	1.17B	1.29B	1.57B	2.16B	2.16B	1.61B
EBITDA	-405.45M	-40.26M	699.00M	2.74B	1.48B	361.65M
Net Income	-1.01B	-564.63M	226.00M	1.82B	764.29M	18.63M
Balance Sheet
Total Assets	7.18B	7.87B	8.49B	8.47B	7.31B	5.77B
Cash, Cash Equivalents and Short-Term Investments	2.97B	3.30B	3.50B	3.60B	2.60B	2.07B
Total Debt	878.42M	978.25M	1.18B	1.35B	1.61B	1.54B
Total Liabilities	1.77B	2.02B	2.35B	2.52B	3.18B	2.80B
Stockholders Equity	5.40B	5.86B	6.14B	5.95B	3.87B	2.79B
Cash Flow
Free Cash Flow	34.00M	295.00M	688.00M	478.36M	403.90M	180.62M
Operating Cash Flow	140.70M	295.60M	698.00M	793.56M	678.71M	466.43M
Investing Cash Flow	-469.67M	-432.91M	-716.00M	-291.06M	-536.01M	-342.14M
Financing Cash Flow	-197.18M	-193.11M	-154.00M	375.77M	307.87M	255.90M

Hotto Link, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 258.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3680, the sentiment is Negative. The current price of 258 is below the 20-day moving average (MA) of 270.00, below the 50-day MA of 282.90, and below the 200-day MA of 279.64, indicating a bearish trend. The MACD of -5.87 indicates Positive momentum. The RSI at 39.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	64 Neutral	¥2.62B	38.88	―	―	-3.54%	-41.26%
3858	63 Neutral	¥3.58B	83.05	―	―	12.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4378	58 Neutral	¥1.48B	-12.50	―	―	-3.24%	-298.72%
4288	54 Neutral	¥2.01B	-5.65	―	―	30.27%	29.21%
3680	52 Neutral	¥4.17B	-4.12	―	1.13%	-22.88%	-441.25%
6662	45 Neutral	¥3.64B	-7.37	―	―	24.22%	-22.37%