Healios KK (4593) AI Stock Analysis

• Market Cap: ¥64.40B
• Dividend Yield: N/A
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -78.54%
• EPS Growth: 10.23%
• Country: JP
• Employees: 65
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -20.31
• Shares Outstanding: 115,417,500
• 10 Day Avg. Volume: 2,440,530
• 30 Day Avg. Volume: 3,994,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥710.00
• Price Target Upside: 27.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: ¥573.00 ▲(2.69% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, substantial losses, and high leverage. Technical analysis provides mixed signals, with short-term bullish momentum but potential bearish pressure. The negative P/E ratio and lack of dividend yield further weigh down the valuation score.

Healios KK Business Overview & Revenue Model

Company Description

Healios K.K. engages in the research and development, manufacture, and sale of cell therapy and regenerative medicine products in Japan, Europe, and the United States. The company is also developing cellular and tissue-based products comprising HLCR011 and HLCR012 that are iPSC regenerative medicines for the treatment of age-related macular degeneration; HLCL041, an iPSC regenerative medicine for the treatment of metabolic liver disease; and HLCM051, a regenerative medicine for treatment of ischemic stroke and acute respiratory distress syndrome, as well as HLCN061 for treating solid tumors. Healios K.K. has a joint research agreement with the Hyogo Medical University on cancer immunotherapies for mesothelioma using eNK cells. The company was formerly known as Retina Institute Japan, K.K. and changed its name to Healios K.K. in September 2013. Healios K.K. was incorporated in 2011 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Healios KK generates revenue through the development and commercialization of its regenerative medicine and cell therapy products. The company collaborates with research institutions and pharmaceutical companies to advance its product pipeline, which includes therapies targeting retinal diseases and acute respiratory distress syndrome. Key revenue streams include licensing agreements, research and development collaborations, and potential sales of its proprietary cell-based therapies upon regulatory approval. Strategic partnerships and collaborations help the company to share the cost of development and access broader markets, thereby contributing to its earnings.

Healios KK Financial Statement Overview

Summary

Healios KK is facing significant financial difficulties, with declining revenues, substantial losses, and high leverage. The income statement, balance sheet, and cash flow analysis all indicate poor financial health, with negative profitability metrics and high financial risk.

Income Statement

Healios KK's income statement reveals significant challenges. The company has experienced a dramatic decline in revenue, with a negative growth rate of 80.95% in the TTM period. Profitability metrics are concerning, with negative net profit margins and EBIT margins indicating substantial losses. The gross profit margin has also deteriorated, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting significant leverage and potential financial risk. Return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is relatively low, which may impact financial stability.

Cash Flow

Cash flow analysis highlights ongoing cash flow challenges, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is not sufficient to cover net losses. The company has shown some improvement in free cash flow growth, but overall cash flow health remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.00M	560.00M	121.00M	90.00M	41.00M	27.00M
Gross Profit	-180.00M	432.00M	108.00M	90.00M	41.00M	27.00M
EBITDA	-2.30B	-2.54B	-3.16B	-4.52B	-3.61B	-3.97B
Net Income	-5.99B	-4.24B	-3.82B	-5.17B	-4.91B	-5.51B
Balance Sheet
Total Assets	16.84B	14.19B	15.15B	15.03B	23.97B	23.17B
Cash, Cash Equivalents and Short-Term Investments	6.25B	3.67B	6.72B	7.25B	15.13B	13.92B
Total Debt	2.60B	2.66B	4.53B	7.15B	11.96B	11.40B
Total Liabilities	15.56B	12.11B	11.29B	10.65B	15.33B	15.32B
Stockholders Equity	1.25B	2.06B	3.86B	4.38B	8.64B	7.84B
Cash Flow
Free Cash Flow	-2.32B	-1.83B	-2.85B	-4.86B	-5.39B	-4.26B
Operating Cash Flow	-2.30B	-1.82B	-2.82B	-4.60B	-5.09B	-3.94B
Investing Cash Flow	-1.54B	-1.42B	-1.12B	-909.00M	-736.00M	-1.22B
Financing Cash Flow	1.32B	77.00M	3.34B	-2.50B	6.99B	803.00M

Healios KK Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 558.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4593, the sentiment is Neutral. The current price of 558 is above the 20-day moving average (MA) of 555.75, below the 50-day MA of 590.92, and above the 200-day MA of 380.23, indicating a neutral trend. The MACD of 5.32 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4593.

Healios KK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7774	58 Neutral	¥20.71B	-72.28	―	―	6.33%	-250.29%
7776	51 Neutral	¥15.77B	-15.22	-39.75%	―	-22.81%	2.69%
4978	49 Neutral	¥19.05B	-151.53	―	―	13.83%	34.66%
4599	47 Neutral	¥18.83B	-9.73	―	―	―	5.59%
4593	46 Neutral	¥64.40B	―	―	―	-78.54%	10.23%
4894	33 Underperform	¥59.75B	-89.49	―	―	1242.62%	2.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Healios KK Corporate Events

Healios Secures Patent Approval for Universal Donor Cells in Japan

Healios K.K. announced the approval of a patent for its Universal Donor Cells (UDCs) by the Japan Patent Office, marking a significant milestone in the company’s innovation in regenerative medicine. The UDC technology, which reduces immune rejection risks, enhances Healios’ competitive edge globally and positions its UDCs as a potential industry standard, facilitating joint research and licensing agreements worldwide.

The most recent analyst rating on (JP:4593) stock is a Buy with a Yen320.00 price target. To see the full list of analyst forecasts on Healios KK stock, see the JP:4593 Stock Forecast page.

Healios K.K. Secures JPY 7 Billion Subsidy for CDMO Business Expansion

Healios K.K. has been selected for a JPY 7 billion subsidy under Japan’s METI program to support capital investment in regenerative, cell, and gene therapy manufacturing facilities. This funding will enable Healios to expand its CDMO business, enhancing its competitive edge in the global market by integrating advanced technologies and establishing a robust international platform. The initiative aligns with Japan’s industrial policy and aims to strengthen Healios’s position as a leader in regenerative medicine, fostering new partnerships and enhancing shareholder value.

The most recent analyst rating on (JP:4593) stock is a Buy with a Yen320.00 price target. To see the full list of analyst forecasts on Healios KK stock, see the JP:4593 Stock Forecast page.