Hybrid Technologies Co.,Ltd. (4260) AI Stock Analysis

• Market Cap: ¥4.19B
• Dividend Yield: N/A
• Average Volume (3M): 12.62K
• Price to Earnings (P/E): 108.1
• Beta (1Y): 0.62
• Revenue Growth: -4.94%
• EPS Growth: -135.39%
• Country: JP
• Employees: 539
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.79
• Shares Outstanding: 11,435,548
• 10 Day Avg. Volume: 5,470
• 30 Day Avg. Volume: 12,616
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥376.00
• Price Target Upside: 2.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: ¥376.00 ▲(2.73% Upside)

The overall stock score is primarily impacted by financial performance challenges, including negative profitability and declining cash flows. Technical indicators further suggest bearish momentum, while valuation metrics highlight unprofitability and lack of dividend yield.

Hybrid Technologies Co.,Ltd. Business Overview & Revenue Model

Company Description

Hybrid Technologies Co., Ltd. provides software development services in Japan and Vietnam. It offers services in the areas of new business/service development support, UX/UI design, Laboratory type development, contracted development, Agile Scrum development, hybrid development, development method using Salesforce, and project management support/resident development support. The company was incorporated in 2016 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hybrid Technologies Co., Ltd. generates revenue through multiple streams, primarily focusing on software development services, IT consulting, and cloud-based solutions. The company earns money by providing customized software solutions tailored to the specific needs of its clients, which often involves ongoing support and maintenance contracts. Additionally, it offers cloud computing services, which include subscription-based models for cloud storage, processing, and software-as-a-service (SaaS) solutions. Partnerships with other technology firms and enterprises enhance its service offerings, enabling Hybrid Technologies to leverage collaborative opportunities and expand its market reach, thus contributing to its financial growth.

Hybrid Technologies Co.,Ltd. Financial Statement Overview

Summary

Hybrid Technologies Co., Ltd. faces challenges in revenue growth and profitability, with negative net profit margins and declining cash flows. The balance sheet shows a reasonable debt position, but the negative return on equity and cash flow issues indicate potential financial instability.

Income Statement

The income statement shows a declining trend in revenue with a negative growth rate of -1.62% in the TTM period. Gross profit margin remains stable at around 30%, but the net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also decreased significantly, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.54, suggesting manageable leverage. However, the return on equity is negative, highlighting issues with generating returns for shareholders. The equity ratio is relatively stable, indicating a balanced capital structure.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth, with a significant drop of -116.05% in the TTM period. The operating cash flow to net income ratio is low, indicating potential cash flow issues. Despite this, the free cash flow to net income ratio remains high, suggesting some efficiency in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.06B	3.14B	2.91B	2.41B	1.70B	1.74B
Gross Profit	975.88M	974.08M	1.05B	943.65M	651.77M	626.22M
EBITDA	224.46M	324.19M	352.60M	451.33M	243.84M	252.59M
Net Income	-71.90M	53.02M	160.33M	249.62M	75.13M	44.13M
Balance Sheet
Total Assets	3.88B	4.07B	3.85B	2.97B	1.34B	1.47B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.36B	1.30B	1.81B	500.06M	486.02M
Total Debt	1.12B	1.14B	971.63M	427.02M	458.39M	637.78M
Total Liabilities	1.64B	1.79B	1.51B	839.59M	772.04M	1.37B
Stockholders Equity	2.21B	2.28B	2.33B	2.13B	570.85M	108.07M
Cash Flow
Free Cash Flow	-30.03M	351.52M	197.72M	318.18M	190.79M	222.94M
Operating Cash Flow	-21.16M	361.71M	260.83M	344.80M	209.34M	242.30M
Investing Cash Flow	-155.43M	-300.22M	-694.56M	-247.79M	-486.02M	-4.77M
Financing Cash Flow	-66.71M	13.29M	-85.08M	1.18B	279.34M	-33.09M

Hybrid Technologies Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 366.00
• 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:4260, the sentiment is Negative. The current price of 366 is below the 20-day moving average (MA) of 376.60, below the 50-day MA of 397.00, and below the 200-day MA of 420.57, indicating a bearish trend. The MACD of -6.60 indicates Positive momentum. The RSI at 35.39 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4260.

Hybrid Technologies Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3839	77 Outperform	¥5.01B	21.01	4.18%	1.63%	7.78%	1.78%
3996	77 Outperform	¥4.43B	21.50	14.26%	―	-1.23%	2.92%
4386	75 Outperform	¥4.44B	9.84	19.60%	3.50%	27.51%	68.04%
7060	66 Neutral	¥6.29B	60.88	1.75%	3.27%	8.86%	―
2493	61 Neutral	¥4.14B	36.17	3.83%	0.53%	18.43%	22.38%
4260	44 Neutral	¥4.19B	108.15	―	―	-4.94%	-135.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%