Kidswell Bio Corporation (4584) AI Stock Analysis

• Market Cap: ¥12.05B
• Dividend Yield: N/A
• Average Volume (3M): 766.13K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 1.23
• Revenue Growth: 83.60%
• EPS Growth: N/A
• Country: JP
• Employees: 38
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.05
• Shares Outstanding: 49,580,320
• 10 Day Avg. Volume: 871,200
• 30 Day Avg. Volume: 766,126
• PEG Ratio: 2.17
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 4.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥255.00 ▲(25.62% Upside)

The score is supported most by strong technical momentum and improving cash flow, but is held back by ongoing net losses, leverage risk on the balance sheet, and a relatively expensive valuation (high P/E with no dividend yield).

Positive Factors

Strong revenue growth

Sustained, large revenue growth (83.6% YoY; revenues more than doubled) indicates accelerating commercial traction for products and services. That scale expansion supports absorption of fixed R&D and manufacturing costs, improving unit economics and long-term path to profitability.

Improved cash generation

Operating and free cash flow turning positive marks a structural improvement in cash generation and working capital management. Positive cash flow reduces reliance on external funding, enabling reinvestment in clinical programs and manufacturing capacity with more financial flexibility over months.

Healthy gross margin

A gross margin around 32% and rising EBIT/EBITDA margins suggest sustainable product-level economics and improving operational efficiency. As revenue scales, these margins can convert operating leverage into durable profitability, supporting investment in R&D and commercialization.

Negative Factors

Persistent net losses

Ongoing net losses and negative return on equity indicate the company has not yet achieved sustained profitability. Continued losses erode equity, can necessitate recurrent financing, and may restrict long-term strategic choices until operations consistently generate positive net income.

High leverage

A high debt-to-equity ratio increases financial risk and interest burden, limiting flexibility to fund clinical development or scale manufacturing. In a capital-intensive biotech model, elevated leverage can force costly refinancing or constrain growth investments during adverse conditions.

Small operational scale

A small headcount (38 employees) can constrain execution across R&D, regulatory, manufacturing and commercialization. Limited internal capacity increases reliance on external partners or contractors, raising execution and scaling risk as the company seeks to expand clinical programs and commercial operations.

Kidswell Bio Corporation Business Overview & Revenue Model

Company Description

Kidswell Bio Corporation develops pharmaceuticals for the treatment of rare and intractable diseases in Japan. Its pipeline products include GND-004 for the treatment of ophthalmic disease and oncology; GND-007 for the treatment of immunological disease; and antibodies for oncology. The company pipeline products also include GBS-001, GBS-004, and GBS-010 for oncology; GBS-005 for immunological diseases; GBS-007 and GBS-012 for ophthalmic disease; GBS-008 for infectious diseases; and GBS-011 for renal disease. In addition, its products also include GCT-101 for alveolar cleft; GCT-102 for congenital isolated hypoganglionosis; and other pipeline products for ophthalmologic diseases, cerebral palsy, peripheral nerve palsy, fracture, and spinal cord injury. The company was formerly known as Gene Techno Science Co.,Ltd. and changed its name to Kidswell Bio Corporation in July 2021. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kidswell Bio Corporation generates revenue through the development and commercialization of its regenerative medicine and biopharmaceutical products. The company earns money by licensing its technologies, securing partnerships with other healthcare companies for co-development or distribution, and potentially receiving milestone payments and royalties from successful commercialization of its therapies. Additionally, Kidswell Bio may benefit from government grants or research funding aimed at advancing innovative medical treatments.

Kidswell Bio Corporation Financial Statement Overview

Summary

Strong revenue growth and a clear improvement in cash generation (operating cash flow and free cash flow turned positive) support the score, but persistent net losses and high leverage on the balance sheet materially limit overall financial strength.

Income Statement

Kidswell Bio Corporation has shown significant revenue growth from 2024 to 2025, with revenues more than doubling. However, the company has consistently struggled with profitability, reflected in negative net income over multiple years. The gross profit margin for 2025 is relatively healthy at approximately 32.2%, but the net profit margin remains negative, indicating ongoing challenges in cost management and efficiency. EBIT and EBITDA margins have improved but remain low, suggesting ongoing operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio in 2025, indicating potential leverage risks. However, the equity ratio shows a reasonable portion of assets funded by equity. The return on equity remains negative due to sustained net losses. While the company has improved its cash position, indicating better liquidity management, the overall financial stability remains a concern due to high liabilities and negative equity returns.

Cash Flow

The cash flow statement shows a substantial improvement in operating cash flow, turning positive in 2025, which is a strong indicator of improved cash management. Free cash flow has seen significant growth, moving from negative to positive, reflecting a more efficient use of capital expenditures. However, the free cash flow to net income ratio is skewed by the negative net income, and while operating cash flow has improved, the company still faces challenges in generating consistent profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.32B	5.08B	2.43B	2.78B	1.57B	996.54M
Gross Profit	2.01B	1.64B	1.04B	1.53B	1.02B	876.97M
EBITDA	399.96M	116.26M	-1.38B	-620.45M	-531.89M	-983.00M
Net Income	312.68M	-21.14M	-1.42B	-657.43M	-550.86M	-1.00B
Balance Sheet
Total Assets	6.58B	7.01B	5.09B	3.89B	3.47B	3.93B
Cash, Cash Equivalents and Short-Term Investments	2.84B	3.00B	2.23B	1.07B	1.16B	1.46B
Total Debt	1.55B	1.84B	2.58B	1.95B	700.00M	1.10B
Total Liabilities	4.53B	5.60B	4.25B	2.66B	1.77B	2.32B
Stockholders Equity	2.05B	1.41B	831.47M	1.23B	1.70B	1.61B
Cash Flow
Free Cash Flow	0.00	930.26M	-453.63M	-1.42B	-1.17B	-1.27B
Operating Cash Flow	0.00	936.71M	-453.63M	-1.42B	-1.17B	-1.27B
Investing Cash Flow	0.00	65.08M	0.00	-28.82M	526.51M	-22.29M
Financing Cash Flow	0.00	-240.06M	1.62B	1.36B	369.08M	718.35M

Kidswell Bio Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 203.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4584, the sentiment is Neutral. The current price of 203 is below the 20-day moving average (MA) of 252.75, below the 50-day MA of 229.96, and below the 200-day MA of 239.71, indicating a neutral trend. The MACD of 6.46 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 7.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4584.

Kidswell Bio Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4584	59 Neutral	¥12.05B	37.45	―	―	83.60%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4588	50 Neutral	¥49.97B	-20.76	―	―	-9.04%	13.09%
2370	46 Neutral	¥7.97B	-5.83	―	―	5.44%	-2.17%
4583	45 Neutral	¥7.85B	-8.40	―	―	25.28%	39.15%
4893	45 Neutral	¥6.49B	-8.30	―	―	-12.01%	26.66%
4571	40 Underperform	¥10.48B	-13.00	-26.70%	―	172.39%	8.27%

Kidswell Bio Corporation Corporate Events

Kidswell Bio Corporation Reports FY2025 Q2 Financial Results

Kidswell Bio Corporation has released its financial results for the second quarter of fiscal year 2025, highlighting its progress in the biosimilars and cell therapy sectors. The announcement underscores the company’s strategic focus on expanding its market presence and improving its financial performance, which is crucial for its stakeholders and industry positioning.

The most recent analyst rating on (JP:4584) stock is a Hold with a Yen249.00 price target. To see the full list of analyst forecasts on Kidswell Bio Corporation stock, see the JP:4584 Stock Forecast page.

Kidswell Bio Corporation Reports Strong Financial Recovery in 2025

Kidswell Bio Corporation reported significant improvements in its financial performance for the six months ending September 30, 2025, with net sales increasing by 87.2% year-on-year. The company’s net income turned positive, reflecting a strong recovery from the previous year’s losses, indicating a positive impact on its operations and potential for improved industry positioning.

The most recent analyst rating on (JP:4584) stock is a Hold with a Yen249.00 price target. To see the full list of analyst forecasts on Kidswell Bio Corporation stock, see the JP:4584 Stock Forecast page.