HCAI (HCAI): a likely value trap?

Avoid — this is a tiny, unprofitable Chinese reverse-merger shell that has already done one reverse split and is under a securities-fraud investigation.

⚠ TRAP Fundamentals37/100

Down 98% from its all-time high of $295.80 — now $5.96

Why HCAI dropped

HCAI is a micro-cap Chinese parking-equipment company that IPO'd in Feb 2025, has lost over 98% of its value since, got a Nasdaq minimum-bid-price deficiency notice, executed a 1-for-30 reverse stock split in April 2026 to stay listed, and is now facing a law-firm securities class-action investigation — none of which is a story of temporary mispricing.

Fwd P/E —Op margin -322.7%Rev growth —Debt/equity 0.8%Analyst upside —

How this scored 37/100 ❌ fails 1 hard check

❌ Fails 1 hard check — these are pass/fail and override the score entirely.

❌ Makes money not profitable (and no credible path to profit)

✅ Generates cash Free cash flow $24M

✅ Not drowning in debt Debt/equity 0.8% (limit 200%)

✅ Can pay its bills Current ratio 1.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 0/25

Operating margin -322.7% 0/9

Net profit margin 0.0% 0/8

Return on equity -262.3% 0/8

Growth Is it getting bigger, or dying? 8/25

Revenue growth unknown 3/9

Earnings growth unknown 2/8

Expected profit change unknown 2/8

Value Is it cheap right now? 8/25

Forward P/E unknown 3/10

PEG ratio unknown 2/8

Analyst target upside unknown 2/7

Balance sheet Will it survive? 21/25

Debt / equity 0.8% 10/10

Current ratio 1.8 4/8

Free cash flow $24M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-21. Research only — not financial advice.