Analysts Are Optimistic We'll See A Profit From HeartCore Enterprises, Inc. (NASDAQ:HTCR)

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$14m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on HeartCore Enterprises' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for HeartCore Enterprises

According to some industry analysts covering HeartCore Enterprises, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$216k in 2024. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 163% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of HeartCore Enterprises' upcoming projects, though, 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 prudently, 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:

This article is not intended to be a comprehensive analysis on HeartCore Enterprises, so if you are interested in understanding the company at a deeper level, take a look at HeartCore Enterprises' company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. 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.
2. 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.
3. 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