Deep Value: cash covers more than 100% of the stock price

This company holds roughly $4M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

HeartCore Enterprises

HTCR

Software - Application · Technology

Price

$2.74

+0.17 (+6.61%)

Market Cap

$3.9M

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+31.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 968K (2021) → 1.3M (2025)

HeartCore Enterprises is a small software company based in Japan that sells tools to help businesses manage their websites, digital content, and customer experiences. Its main products are a customer experience management platform and a digital transformation suite used by Japanese corporations looking to modernize how they interact with customers online. The company also has a consulting arm that helps businesses navigate going public in the United States.

HeartCore earns money through software licenses, subscriptions, and consulting fees. It operates primarily in Japan, where it serves mid-to-large enterprises, and it has been working to expand its U.S. presence. The company is quite small, with a market cap near zero, and it faces significant financial pressure — its operating margin is deeply negative, meaning it spends much more than it earns. The key risk is whether HeartCore can grow revenue fast enough to reach profitability before running low on resources, especially given intense competition from larger global software providers.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-65.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+46.8% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

72.4%ownership

Insiders own a meaningful stake in the company

Cash Runway

~11 months

$4M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Cash watch

HeartCore Enterprises has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

5.9%

Thin — 5.9% gross margin

Operating Margin

-123.7%

Losing money on operations — -123.7%

ROCE

-20.5%

Weak — -20.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-62.4%

Shrinking sales (-62.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

-42%

Weak — only -42% of profit becomes cash

FCF Margin

-28.1%

Burning cash (-28.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.09

Conservative — low debt load (0.09)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

0.5x

Attractive valuation — P/E 0.5

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-0.8

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

113.54%

Healthy income — 113.54% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

N/A

Data not available

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