Revenue GrowthSustained multi-year top-line growth demonstrates product adoption and market traction. Expanding revenue from ¥100m to ¥961m implies a growing commercial footprint and scale potential, which underpins future margin improvement and funds reinvestment in R&D and distribution over the medium term.

Positive Free Cash FlowTransitioning to positive free cash flow and operating cash flow indicates improving cash generation independent of financing. This durable change enhances financial flexibility to fund operations, R&D or commercialization without immediate external capital, reducing refinancing risk over the next several quarters.

Strong Balance Sheet / Low LeverageA strong equity position and low leverage provide resilience against cyclical shocks and runway for product development. Robust equity gives the company capacity to absorb losses, pursue clinical or commercial investments, and negotiate better financing terms if needed, supporting strategic options durably.

Bears Say

Persistent Net LossesOngoing net losses are a structural constraint: they can erode equity, force dilution or external financing, and limit long-term reinvestment. Until profitability is consistently achieved, the firm faces sustained pressure on capital structure and must convert growth into earnings to secure independent funding.

Negative Profit MarginsNegative margins reflect persistent operational inefficiency or high fixed costs relative to revenue. Even with strong top-line growth, failure to move margins toward breakeven inhibits scalable profitability and could necessitate structural cost reductions or pricing power improvements to achieve durable earnings.

Low Cash Conversion QualityWeak conversion of earnings into operating cash undermines earnings quality: reported improvements in revenue may not translate into reliable internal funding. This raises the risk of cash volatility, dependence on external capital, and constrained ability to fund growth or clinical programs sustainably.

4888 FAQ

What was STELLA PHARMA CORPORATION’s price range in the past 12 months?

STELLA PHARMA CORPORATION lowest stock price was ¥200.00 and its highest was ¥506.00 in the past 12 months.

What is STELLA PHARMA CORPORATION’s market cap?

STELLA PHARMA CORPORATION’s market cap is ¥14.91B.

When is STELLA PHARMA CORPORATION’s upcoming earnings report date?

STELLA PHARMA CORPORATION’s upcoming earnings report date is Aug 12, 2026 which is in 173 days.

How were STELLA PHARMA CORPORATION’s earnings last quarter?

STELLA PHARMA CORPORATION released its earnings results on Feb 12, 2026. The company reported -¥6 earnings per share for the quarter, missing the consensus estimate of N/A by -¥6.

Is STELLA PHARMA CORPORATION overvalued?

According to Wall Street analysts STELLA PHARMA CORPORATION’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does STELLA PHARMA CORPORATION pay dividends?

STELLA PHARMA CORPORATION does not currently pay dividends.

What is STELLA PHARMA CORPORATION’s EPS estimate?

STELLA PHARMA CORPORATION’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does STELLA PHARMA CORPORATION have?

STELLA PHARMA CORPORATION has 34,034,100 shares outstanding.

What happened to STELLA PHARMA CORPORATION’s price movement after its last earnings report?

STELLA PHARMA CORPORATION reported an EPS of -¥6 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 5.814%.

Which hedge fund is a major shareholder of STELLA PHARMA CORPORATION?

Currently, no hedge funds are holding shares in JP:4888

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

STELLA PHARMA CORPORATION

Stella Pharma Corporation engages in the research, development, manufacturing, and distribution of pharmaceuticals. The company develops drugs for boron neutron capture therapy (BNCT). Its product includes SPM-011, a boron-containing drug for BNCT used for treating head and neck cancer, recurrent malignant glioma and meningioma, and malignant melanoma and angiosarcoma. The company was incorporated in 2007 and is headquartered in Osaka, Japan.