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

• Market Cap: ¥3.25B
• Dividend Yield: N/A
• Average Volume (3M): 19.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -3.52%
• EPS Growth: -65.34%
• Country: JP
• Employees: 539
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -5.55
• Shares Outstanding: 11,493,548
• 10 Day Avg. Volume: 16,750
• 30 Day Avg. Volume: 19,716
• PEG Ratio: -3.47
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 1.00K
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥301.00 ▼(-16.39% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakened financial performance—profitability has swung to a loss and cash flows turned negative—despite continued revenue growth. Technicals are moderately supportive in the near term with improving momentum signals, but valuation is constrained by losses (negative P/E) and no provided dividend yield.

Positive Factors

Consistent revenue growth

Sustained top-line growth (8.2% TTM) indicates ongoing demand and market traction for the company's services. Over 2–6 months this revenue momentum supports scale benefits, gives management time to restore margins, and provides a base to invest in product and sales initiatives that improve long-term profitability.

Historic cash-generation capability

The business previously delivered strong free cash flow in 2022–2024, showing the operating model can convert revenue into cash. That historical cash-generation capacity is a durable strength: if cost discipline or one-time issues are resolved, the firm has precedent to recover cash flow and fund growth without permanent dilution.

Moderate leverage on balance sheet

A debt-to-equity near 0.56 is moderate for the sector and implies the company retains financial flexibility to manage shortfalls or invest. This balance-sheet posture reduces immediate solvency risk, allowing management time to address earnings and cash flow pressures without forcing distressed asset sales or aggressive refinancing.

Negative Factors

Sharp profitability decline

The shift to negative operating profit and slight net loss reflects weakened earnings power and compressed margins. Over the medium term, persistent negative EBIT undermines internal funding for R&D and sales, reduces pricing power, and complicates efforts to rebuild returns without structural cost or revenue improvements.

Negative operating & free cash flow

Material negative OCF and FCF are a structural concern: they limit liquidity, force reliance on external financing, and constrain strategic investments. If cash conversion remains impaired, the company may face higher funding costs or need to cut growth initiatives, impairing medium-term recovery prospects.

Deteriorating return on equity

ROE collapsing to roughly 1% signals sharply reduced capital efficiency and weak shareholder returns. Persistently low ROE makes it harder to justify reinvestment from retained earnings, increases sensitivity to funding costs, and may require strategic changes to restore attractive long-term returns.

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 by selling its hybrid energy systems and energy storage solutions to commercial and industrial clients. The company also earns income from ongoing maintenance and support services for its products, ensuring long-term customer engagement. Additionally, partnerships with key players in the renewable energy sector help expand its market reach and enhance its product offerings, contributing to increased sales. Grants and incentives from government initiatives focused on clean energy may also provide supplementary revenue, bolstering the company's financial performance.

Hybrid Technologies Co.,Ltd. Financial Statement Overview

Summary

Revenue grew 8.2% TTM, but profitability deteriorated sharply (EBIT turned negative and net income slipped slightly negative). Cash generation is the biggest weakness: operating cash flow and free cash flow turned negative after prior strong years. Balance sheet leverage is moderate, but returns on equity have fallen materially, reflecting weaker capital efficiency.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 8.2%, but profitability deteriorated materially: EBIT turned negative (-67.9M) and net income slipped slightly negative (-26.5M) versus positive profits in the last annual period (2025). Margins have compressed versus 2022–2024 levels (lower EBITDA and operating profitability), indicating weaker operating leverage and/or higher costs despite stable gross margin (~34%). Strength is continued top-line growth; weakness is the clear downshift in earnings power and volatility in results.

Balance Sheet

Leverage looks moderate on a debt-to-equity basis (~0.56 in the most recent periods), which is higher than 2022–2024 but not extreme for the sector. However, return on equity has fallen sharply to around ~1% in the latest period, reflecting reduced profitability and weaker capital efficiency. Overall, the balance sheet appears serviceable, but the trend in returns and the higher leverage versus earlier years are key watch items.

Cash Flow

Cash generation weakened meaningfully in TTM (Trailing-Twelve-Months): operating cash flow (-78.6M) and free cash flow (-107.1M) turned negative after strong positive free cash flow in 2022–2024. Free cash flow growth is deeply negative, and cash conversion is currently a risk factor given profits also turned slightly negative. The main positive is that prior years showed the business can generate solid cash, but the latest trajectory is unfavorable.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	3.27B	3.02B	3.14B	2.91B	2.41B	1.70B
Gross Profit	1.11B	1.02B	974.08M	1.05B	943.65M	651.77M
EBITDA	169.83M	244.21M	324.19M	352.60M	451.33M	243.84M
Net Income	-26.49M	18.73M	53.02M	160.33M	249.62M	75.13M
Balance Sheet
Total Assets	6.09B	3.89B	4.07B	3.85B	2.97B	1.34B
Cash, Cash Equivalents and Short-Term Investments	1.38B	916.62M	1.36B	1.30B	1.81B	500.06M
Total Debt	3.18B	1.19B	1.14B	971.63M	427.02M	458.39M
Total Liabilities	4.09B	1.72B	1.79B	1.51B	839.59M	772.04M
Stockholders Equity	2.06B	2.13B	2.28B	2.33B	2.13B	570.85M
Cash Flow
Free Cash Flow	-107.12M	4.20M	351.52M	197.72M	318.18M	190.79M
Operating Cash Flow	-78.64M	11.72M	361.71M	260.83M	344.80M	209.34M
Investing Cash Flow	-555.39M	-540.21M	-300.22M	-694.56M	-247.79M	-486.02M
Financing Cash Flow	741.76M	92.68M	13.29M	-85.08M	1.18B	279.34M

Hybrid Technologies Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 360.00
• 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 360 is above the 20-day moving average (MA) of 296.85, above the 50-day MA of 296.52, and above the 200-day MA of 355.58, indicating a bearish trend. The MACD of -4.74 indicates Positive momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.31 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
4076	80 Outperform	¥4.97B	9.22	―	4.35%	8.71%	23.46%
3940	78 Outperform	¥6.72B	16.54	―	2.43%	2.92%	-0.94%
5576	77 Outperform	¥6.49B	12.26	―	3.13%	6.08%	0.53%
4396	76 Outperform	¥26.23B	16.07	―	1.70%	22.25%	31.88%
4072	73 Outperform	¥32.55B	11.50	―	2.22%	9.57%	315.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4260	46 Neutral	¥3.25B	-123.57	―	―	-3.52%	-65.34%