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HeartCore Enterprises: A True Hidden Gem

This tech company's products have been snapped up in Japan, and it is expanding to American markets

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May 17, 2022
  • HeartCore’s content management system is replacing the likes of WordPress at many large companies.
  • Its process mining offering is a helpful tool aiding enterprises in digital transformation.
  • The company is one of the few profitable tech small-caps in its space and is trading as less than 2 times revenues.
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Businesses all over the world are embracing digital transformation and are making the most of the advanced cloud-based applications in the new era of IT complexity. With every passing day, more and more enterprises are establishing a strong online presence and going the extra mile in technological adoption. Companies are employing numerous technologies, including process mining, to achieve automation for increased productivity and process optimization.

I recently came across a Nasdaq-listed Japanese company within this space that specializes in digitization and automation through cutting-edge solutions while slowly expanding from the Japanese market to the U.S. That company is HeartCore Enterprises (

HTCR, Financial). It is one of the rare profitable small-caps in this domain and appears to be trading at a ridiculously low valuation compared to what is business is worth, making it a true hidden gem.

Company overview

HeartCore Enterprises is a Tokyo-based high-tech software development company whose business is split into two main parts – customer experience management and digital transformation.

Its customer experience management platform includes marketing, sales, service and content management systems, as well as other tools and integrations that help companies attract and engage customers throughout the customer journey. It also includes all of the features required for effective digital marketing, such as personalized customer experiences, data-driven campaign measurements and so on.

In Japan and the United States, HeartCore's digital transformation business operates in two primary units: Content Management System (CMS), a 12-year-old operating company managing website content, and Digital Transformation (DX) solutions, providing customers with process mining, robotic process automation and task mining to help them accelerate their digital transformation.

Content management offering

Today, businesses must manage significant content, collaborate with different businesses and build infrastructure to meet customers' needs. Companies need a content management system that allows them to easily integrate various features into their websites, such as content creation, analysis, search capability and access controls while delivering and receiving quality content rapidly in response to market revolutions.

WordPress is currently the market leader in this domain, followed by names like Wix, Zyro and HubSpot Website Builder (

HUBS, Financial), among others. However, one of the most significant drawbacks to all of these systems is the lack of security and the high likelihood of website hacking. The CMS and customer experience management (CXM) system from HeartCore aims to address this issue while also providing a host of good features. It provides an enterprise-level CMS with features such as e-commerce, smartphones, apps, social networking and digital signage.

Besides, HeartCore has built an excellent end-to-end solution in this space with features like compliance to multiple devices, the static to dynamic site conversion, connection to social network service sites, multiple sites, global site administration, CRM, big data and SEO marketing to boost sales and site security.

HeartCore's solution is quickly being adopted due to its integration with advanced in-site search, external systems and multi-language support. Nearly 800 companies in Japan have adopted this CMS, including the likes of Sony (

SONY, Financial) and Fujifilm (TSE:4901), and the company is rapidly expanding its client base.

Process mining

Process mining is a technique for identifying and presenting end-to-end processes that companies use to complete tasks. This offering is a part of HeartCore’s digital transformation business. Process mining displays process details, variants and endorsements for optimizing and improving it. Many Japanese companies focused on leadership and performance are looking for tools and data to digitize, automate and transform business processes, giving HeartCore a huge market in this area.

Furthermore, HeartCore's solutions are assisting these businesses in accelerating their digital transformation. An exclusive reseller contract with Apromore, the leading Japanese open-source process mining technology developer, was a classic example of a recent deal that the company cracked in this space. The Apromore Enterprise Edition’s process mining tool is exclusively distributed in Japan by HeartCore.

HeartCore is assisting Japanese businesses in objectively and transparently examining critical business operations in systems such as SAP (

SAP, Financial), Oracle (ORCL), Microsoft Dynamics365 (MSFT, Financial) and ServiceNow (NOW, Financial) after merging the solution with its own expertise. Additionally, the company intends to reduce time-to-value for its clients by accelerating process discovery, accuracy and lowering change risk, as well as integrating process mining into the operations management practises of as many Japanese companies as possible to create a powerful platform for gaining business benefits from digital transformation efforts.

Final thoughts


As we can see in the above chart, HeartCore's stock price has fallen since its Nasdaq listing, which took place at around $5 per share earlier this year. The company witnessed a typical post-listing selloff but was not able to recover thereafter as the technology stocks have been correcting heavily given the rise in inflation and interest rates and the current macro-economic environment.

Nevertheless, the company generated nearly $10.82 million in revenue in the previous year, and its current market capitalization is below $20 million, implying a price-sales ratio of less than 2, which is significantly below the tech industry average. Even its enterprise-value-to-revenue ratio is as low as 2.41. Interestingly, the company has a positive operating margin and is also generating positive cash flows from operations, which is a big green flag.

Overall, I believe HeartCore is a fantastic long-term software choice because of its growing market share in both content management and process mining.


I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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