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

• Market Cap: ¥3.47B
• Dividend Yield: N/A
• Average Volume (3M): 19.72K
• Price to Earnings (P/E): 185.6
• Beta (1Y): 0.78
• Revenue Growth: -3.52%
• EPS Growth: -65.34%
• Country: JP
• Employees: 539
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.15
• Shares Outstanding: 11,455,548
• 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: 48 Neutral
• Price Target: ¥332.00 ▼(-7.78% Downside)

The score is held back primarily by weak financial performance (declining growth, thin margins, and sharp free cash flow deterioration) and very expensive valuation (P/E 204.58). Technicals provide partial support with the stock trading above key shorter-term moving averages and a positive MACD, but overbought RSI and being below the 200-day average limit the uplift.

Positive Factors

Diversified revenue streams

Multiple revenue channels — system sales, recurring maintenance/support, strategic partnerships and potential government clean‑energy grants — create steady, multi-year cash inflows. This diversification reduces reliance on single large projects and supports longer‑term customer relationships and upsell opportunities.

Manageable leverage

A moderate debt-to-equity ratio (~0.56) and stable equity mix provide financial flexibility to invest in product development, service scale-up, or targeted M&A. Manageable leverage lowers near-term default risk and supports capital allocation decisions that matter for durable operational improvement.

Product portfolio aligned with renewables

Offering hybrid systems, storage and smart‑grid tech positions the company in secular decarbonization and grid modernization trends. Structural demand for integration and storage solutions supports multi‑year revenue potential and recurring service needs, underpinning durable market opportunity beyond cyclical swings.

Negative Factors

Declining revenue trend

Persistent revenue contraction reduces scale and weakens bargaining power with suppliers and customers. Over several quarters this can impair R&D and service investment, hinder market share gains, and make it harder to absorb fixed costs, limiting sustainable margin recovery.

Severe free cash flow deterioration

A dramatic FCF decline and very low cash conversion of reported earnings constrain the firm's ability to self‑fund capex, working capital or service expansion. Over months this elevates reliance on external financing, raising execution and refinancing risk and limiting strategic optionality.

Compressed profitability and weak ROE

Very thin net margins and a near‑zero ROE signal limited ability to generate returns from invested capital. Structurally low profitability reduces retained earnings for reinvestment, undermines shareholder value creation, and makes the business more vulnerable to cost inflation or competitive pricing pressure.

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

Weak fundamentals driven by declining revenue (-1.17%) and pressured profitability (net margin 0.62%) alongside notable cash flow deterioration (free cash flow growth -113.99% and very low operating cash flow to net income at 0.02). The balance sheet is comparatively steadier with manageable leverage (debt-to-equity 0.56), but ROE has fallen to 0.88%.

Income Statement

The income statement shows declining revenue and profit margins over the past year, with a negative revenue growth rate of -1.17% in the latest period. Gross profit margin decreased slightly, and net profit margin fell to 0.62%, indicating pressure on profitability. The EBIT and EBITDA margins also declined, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.56, which is manageable but has increased over the years. Return on equity has decreased to 0.88%, suggesting reduced profitability for shareholders. The equity ratio remains stable, indicating a balanced capital structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 113.99%, highlighting potential liquidity issues. The operating cash flow to net income ratio is low at 0.02, indicating challenges in converting income into cash. The free cash flow to net income ratio is relatively better at 0.36, but still reflects cash flow constraints.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.02B	3.02B	3.14B	2.91B	2.41B	1.70B
Gross Profit	1.02B	1.02B	974.08M	1.05B	943.65M	651.77M
EBITDA	243.85M	244.21M	324.19M	352.60M	451.33M	243.84M
Net Income	19.19M	18.73M	53.02M	160.33M	249.62M	75.13M
Balance Sheet
Total Assets	3.89B	3.89B	4.07B	3.85B	2.97B	1.34B
Cash, Cash Equivalents and Short-Term Investments	916.62M	916.62M	1.36B	1.30B	1.81B	500.06M
Total Debt	1.19B	1.19B	1.14B	971.63M	427.02M	458.39M
Total Liabilities	1.72B	1.72B	1.79B	1.51B	839.59M	772.04M
Stockholders Equity	2.13B	2.13B	2.28B	2.33B	2.13B	570.85M
Cash Flow
Free Cash Flow	5.05M	4.20M	351.52M	197.72M	318.18M	190.79M
Operating Cash Flow	12.24M	11.72M	361.71M	260.83M	344.80M	209.34M
Investing Cash Flow	-540.21M	-540.21M	-300.22M	-694.56M	-247.79M	-486.02M
Financing Cash Flow	92.68M	92.68M	13.29M	-85.08M	1.18B	279.34M

Hybrid Technologies Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 360.00
• 50DMA: Positive
• 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 Neutral. The current price of 360 is above the 20-day moving average (MA) of 303.40, above the 50-day MA of 293.88, and below the 200-day MA of 367.20, indicating a neutral trend. The MACD of 2.48 indicates Positive momentum. The RSI at 52.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4386	78 Outperform	¥5.75B	11.58	―	2.99%	26.64%	30.76%
3839	76 Outperform	¥5.14B	26.60	―	1.61%	7.03%	1.01%
3996	71 Outperform	¥3.42B	37.25	―	―	-1.26%	-39.08%
7060	66 Neutral	¥5.27B	23.02	―	3.36%	7.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2493	57 Neutral	¥4.47B	30.45	―	0.53%	17.13%	-41.14%
4260	48 Neutral	¥3.47B	185.65	―	―	-3.52%	-65.34%