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HTCR Stock Analysis 2026 - HeartCore Enterprises, Inc. AI Rating

HTCR Nasdaq Services-Computer Processing & Data Preparation DE CIK: 0001892322
Recently Updated • Analysis: Apr 11, 2026 • SEC Data: 2025-12-31
SELL
78% Conf
Pending
Analysis scheduled

📊 HTCR Key Takeaways

Revenue: $9.0M
Net Margin: 64.6%
Free Cash Flow: $-2.7M
Current Ratio: 1.58x
Debt/Equity: 0.06x
EPS: $0.22
AI Rating: SELL with 78% confidence

Is HTCR a Good Investment? Thesis Analysis

Claude

HeartCore shows dangerous operational deterioration masked by positive net income from non-operating sources. Negative operating cash flow of -$2.7M combined with flat revenue growth indicates the core business is unprofitable and cash-generative, leaving the company with less than one year of runway at current burn rate. The stark contradiction between 64.6% net margin and -34.8% operating margin signals reliance on non-sustainable one-time gains or accounting items.

Why Buy HTCR? Key Strengths

Claude
  • + Minimal leverage with 0.06x debt-to-equity ratio provides financial flexibility
  • + Adequate liquidity with 1.58x current ratio and $2.0M cash reserves
  • + Positive gross margin of 35.1% indicates viable product unit economics

HTCR Investment Risks to Consider

Claude
  • ! Negative operating cash flow of -$2.7M annually with only $2.0M cash means ~10 months of runway before insolvency
  • ! Zero revenue growth (0% YoY) while burning operational cash is structurally unsustainable
  • ! Significant disconnect between positive net income and negative operating income suggests reliance on one-time gains, asset sales, or tax benefits rather than business performance
  • ! Negative operating margin of -34.8% indicates core operations are deeply unprofitable

Key Metrics to Watch

Claude
  • * Operating cash flow trend - must turn positive to validate business viability
  • * Revenue growth acceleration - stagnation at 0% YoY is unsustainable
  • * Composition of net income - clarify proportion from operations vs. non-recurring items

HTCR Financial Metrics

Revenue
$9.0M
Net Income
$5.8M
EPS (Diluted)
$0.22
Free Cash Flow
$-2.7M
Total Assets
$13.1M
Cash Position
$2.0M

💡 AI Analyst Insight

HeartCore Enterprises, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

HTCR Profitability Ratios

Gross Margin 35.1%
Operating Margin -34.8%
Net Margin 64.6%
ROE 66.0%
ROA 44.4%
FCF Margin -29.8%

HTCR vs Technology Sector

How HeartCore Enterprises, Inc. compares to Technology sector averages

Net Margin
HTCR 64.6%
vs
Sector Avg 18.0%
HTCR Sector
ROE
HTCR 66.0%
vs
Sector Avg 22.0%
HTCR Sector
Current Ratio
HTCR 1.6x
vs
Sector Avg 2.5x
HTCR Sector
Debt/Equity
HTCR 0.1x
vs
Sector Avg 0.5x
HTCR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is HTCR Overvalued or Undervalued?

Based on fundamental analysis, HeartCore Enterprises, Inc. appears fundamentally strong relative to the Technology sector in 2026.

Return on Equity
66.0%
Sector avg: 22%
Net Profit Margin
64.6%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.06x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

HTCR Balance Sheet & Liquidity

Current Ratio
1.58x
Quick Ratio
1.58x
Debt/Equity
0.06x
Debt/Assets
44.2%
Interest Coverage
-314.74x
Long-term Debt
$499.0K

HTCR 5-Year Financial Trend & Growth Analysis

HTCR 5-year financial data: Year 2021: Revenue $10.8M, Net Income $151.0K, EPS $0.01. Year 2022: Revenue $10.8M, Net Income -$338.2K, EPS $-0.02. Year 2023: Revenue $21.8M, Net Income -$6.7M, EPS $-0.37. Year 2025: Revenue $22.7M, Net Income -$1.5M, EPS $-0.07.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: HeartCore Enterprises, Inc.'s revenue has grown significantly by 110% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.07 indicates the company is currently unprofitable.

HTCR Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-29.8%
Free cash flow / Revenue

HTCR Quarterly Performance

Quarterly financial performance data for HeartCore Enterprises, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $3.0M $434.1K $0.02
Q3 2024 $4.7M -$1.3M $-0.07
Q2 2024 $4.1M -$911.8K $-0.04
Q1 2024 $5.0M -$1.3M $-0.06
Q3 2023 $1.9M -$1.3M $-0.07
Q2 2023 $2.7M -$911.8K $-0.04
Q1 2023 $2.3M -$1.6M $-0.09
Q3 2022 $1.9M $186.2K $0.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

HTCR Capital Allocation

Operating Cash Flow
-$2.7M
Cash generated from operations
Stock Buybacks
$3.5M
Shares repurchased (TTM)
Capital Expenditures
$1.2K
Investment in assets
Dividends Paid
$3.3M
Returned to shareholders

HTCR SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for HeartCore Enterprises, Inc. (CIK: 0001892322)

📋 Recent SEC Filings

Date Form Document Action
Apr 6, 2026 8-K form8-k.htm View →
Apr 1, 2026 8-K form8-k.htm View →
Mar 31, 2026 10-K form10-k.htm View →
Mar 31, 2026 8-K form8-k.htm View →
Mar 27, 2026 8-K form8-k.htm View →

Frequently Asked Questions about HTCR

What is the AI rating for HTCR?

HeartCore Enterprises, Inc. (HTCR) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are HTCR's key strengths?

Claude: Minimal leverage with 0.06x debt-to-equity ratio provides financial flexibility. Adequate liquidity with 1.58x current ratio and $2.0M cash reserves.

What are the risks of investing in HTCR?

Claude: Negative operating cash flow of -$2.7M annually with only $2.0M cash means ~10 months of runway before insolvency. Zero revenue growth (0% YoY) while burning operational cash is structurally unsustainable.

What is HTCR's revenue and growth?

HeartCore Enterprises, Inc. reported revenue of $9.0M.

Does HTCR pay dividends?

HeartCore Enterprises, Inc. pays dividends, with $3.3M distributed to shareholders in the trailing twelve months.

Where can I find HTCR SEC filings?

Official SEC filings for HeartCore Enterprises, Inc. (CIK: 0001892322) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is HTCR's EPS?

HeartCore Enterprises, Inc. has a diluted EPS of $0.22.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is HTCR a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, HeartCore Enterprises, Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is HTCR stock overvalued or undervalued?

Valuation metrics for HTCR: ROE of 66.0% (sector avg: 22%), net margin of 64.6% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.

Should I buy HTCR stock in 2026?

Our dual AI analysis gives HeartCore Enterprises, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is HTCR's free cash flow?

HeartCore Enterprises, Inc.'s operating cash flow is $-2.7M, with capital expenditures of $1.2K. FCF margin is -29.8%.

How does HTCR compare to other Technology stocks?

Vs Technology sector averages: Net margin 64.6% (avg: 18%), ROE 66.0% (avg: 22%), current ratio 1.58 (avg: 2.5).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 11, 2026 | Data as of: 2025-12-31 | Powered by Claude AI