Heartcore Enterprises Inc. Common Stock (HTCR)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn consistent returns and sell at a discount to intrinsic value. HeartCore is in IPO consulting and software licensing, a niche with only 44 employees and little evident competitive protection. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $321,428 and net income was -$2.0M. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.2M and net loss was $1.9M. That is a sharp swing from fiscal Q3 2025, the quarter ended 2025-09-30, when net income was $434,072 on $3.0M revenue, and from fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $1.1M on $187,277 revenue. For FY2025, the year ended 2025-12-31, revenue was $9.0M and net income was $5.8M, but FY2024, the year ended 2024-12-31, had a net loss of $1.5M on $22.7M revenue, and FY2023, the year ended 2023-12-31, lost $4.2M on $21.8M revenue. The pattern is erratic, not durable. Financial health is poor: FairStock calculations from the given data show trailing free cash flow of -$3.6M, FCF yield of -143.7%, Piotroski 2/9, Altman Z-score -2.58, ROE -109.82%, and ROCE -19.03%. Debt/equity of 0.10 is not the main problem; cash burn and weak profitability are. At the $1.67 close on 2026-10-13, FairStock shows market cap $2.5M, P/E -0.49, and P/B 0.54. A low price-to-book can attract a bargain hunter, but when book value is being destroyed by losses and negative cash flow, the discount may be illusory. I would need evidence of sustained positive cash flow and a clearer competitive advantage before treating this as a Graham-style asset bargain rather than a speculative turnaround.

In plain English: HeartCore Enterprises helps other companies get ready to sell stock to the public, mainly in Japan, and sells related software. The business looks weak now: in the three months ended 2026-06-30, revenue was $321,428 and it lost $2.0 million, and its cash flow has been negative. At $1.67 on 2026-10-13, the stock sells for less than its stated net assets, but the losses make it hard to call the price a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer