Yahoo Finance HeartCore Enterprises, Inc. (NASDAQ:HTCR) Could Be Less Than A Year Away From Profitability
HeartCore Enterprises, Inc. (NASDAQ:HTCR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. With the latest financial year loss of US$4.2m and a trailing-twelve-month loss of US$7.4m, the US$15m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is HeartCore Enterprises' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for HeartCore Enterprises
HeartCore Enterprises is bordering on breakeven, according to some American Software analysts. They expect the company to post a final loss in 2023, before turning a profit of US$216k in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 163%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving HeartCore Enterprises' growth isn’t the focus of this broad overview, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 37% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of HeartCore Enterprises to cover in one brief article, but the key fundamentals for the company can all be found in one place – HeartCore Enterprises' company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Valuation: What is HeartCore Enterprises worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether HeartCore Enterprises is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on HeartCore Enterprises’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
