MeritValue

HeartCore Enterprises, Inc.

HTCRdata completeness 88%6 fiscal years on file
The thesis, from the filings

HeartCore Enterprises, Inc. earns about -121% on invested capital, but has diluted owners by 67% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$10.8M1$8.82M2$21.8M2$22.7M3$8.97M3
Net income−$338,1564−$6.68M5−$4.19M6−$1.48M7$5.79M7
Operating cash flow$766,3008−$4.81M9−$4.33M10−$4.77M10−$3.12M11
Capital expenditure$36,15312$57,07113$526,26014$7,44614—
Free cash flow (derived)$730,1478−$4.87M9−$4.86M10−$4.78M10—
Total debt$5.46M15$3.65M16$4.44M17$1.17M18$1.07M18
Cash & equivalents$3.14M19$7.18M20$1.01M21$1.97M22$1.99M22
Diluted shares15.2M17.9M20.4M20.9M25.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$3.45
your share of equity
Profit it earned you last year
$2.28
Free cash flow it threw off
—
Debt you’d be carrying
$0.42

10 shares is a claim on $3.45 of net worth that earned you $2.28 last year, against $0.42 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-121% avg · 5y
FY21 2%FY22 -409%FY23 -45%FY24 -113%FY25 -41%

It earned an average -121% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+67% shares · 5y

Share count is up 67% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 80% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$1.31
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-010249 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-013979 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-12-31 · accession 0001493152-26-014236 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001493152-23-010249 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001493152-24-013979 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001213900-25-025791 (NetIncomeLoss)
  7. 10-K · period ending 2024-12-31 · accession 0001493152-26-014236 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001493152-23-010249 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001493152-24-013979 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0001213900-25-025791 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2025-12-31 · accession 0001493152-26-014236 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  12. 10-K · period ending 2021-12-31 · accession 0001493152-23-010249 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-12-31 · accession 0001493152-24-013979 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0001213900-25-025791 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-12-31 · accession 0001493152-23-010249 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-12-31 · accession 0001493152-24-013979 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2023-12-31 · accession 0001213900-25-025791 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2024-12-31 · accession 0001493152-26-014236 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2021-12-31 · accession 0001493152-23-010249 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2022-12-31 · accession 0001493152-24-013979 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2023-12-31 · accession 0001213900-25-025791 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2024-12-31 · accession 0001493152-26-014236 (CashAndCashEquivalentsAtCarryingValue)