Healios KK (4593) AI Stock Analysis

• Market Cap: ¥54.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -82.33%
• EPS Growth: 47.73%
• Country: JP
• Employees: 65
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 7.54
• Shares Outstanding: 115,453,500
• 10 Day Avg. Volume: 1,843,110
• 30 Day Avg. Volume: 1,654,023
• PEG Ratio: 0.25
• Price to Book (P/B): 7.59
• Price to Sales (P/S): 27.96
• P/FCF Ratio: -8.55
• 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): -30.93
• Revenue Forecast (FY): ¥1.14B

• Rating: 39 Underperform
• Price Target: ¥401.00 ▼(-17.32% Downside)

Healios KK's overall stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's significant financial challenges, including declining revenues and high leverage, are major concerns. Additionally, technical analysis indicates bearish momentum, further weighing on the stock's attractiveness. The negative P/E ratio and lack of dividend yield also contribute to a low valuation score.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance product development and market reach, providing milestone payments and royalties, which are crucial for long-term revenue generation and credibility in the biotechnology sector.

Innovative Therapies

Healios KK's emphasis on cutting-edge regenerative medicine and cell therapy positions it well to address unmet medical needs, potentially leading to breakthrough treatments and sustained competitive advantage in the healthcare industry.

Free Cash Flow Growth

Improvements in free cash flow growth, despite financial difficulties, indicate potential for better cash management and operational efficiency, which is vital for long-term financial health and investment capacity.

Negative Factors

Declining Revenues

A dramatic decline in revenue reflects challenges in market demand and sales execution, posing risks to the company's ability to sustain operations and invest in future growth.

High Leverage

High leverage indicates potential financial risk, limiting financial flexibility and increasing vulnerability to economic downturns, which can impact long-term viability and growth potential.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies and inability to cover costs, threatening long-term profitability and shareholder value.

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 several key streams, primarily by developing and commercializing its proprietary therapies and treatments. The company partners with pharmaceutical firms and research institutions to further its product development and clinical trials, which can lead to milestone payments and royalties upon successful commercialization of its therapies. Additionally, Healios may receive funding through public and private grants aimed at supporting innovative health solutions. The company's strategic collaborations and partnerships are significant contributors to its financial performance, as they not only provide necessary funding but also enhance the company's credibility and market reach.

Healios KK Financial Statement Overview

Summary

Healios KK is facing significant financial difficulties. The company is struggling with declining revenues, substantial losses, and high leverage. While there are slight improvements in free cash flow growth, the overall financial health is concerning, with risks related to profitability and financial stability.

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: Negative
• Last Price: 485.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 485 is above the 20-day moving average (MA) of 469.55, below the 50-day MA of 497.14, and above the 200-day MA of 438.80, indicating a neutral trend. The MACD of -4.42 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥19.66B	―	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4978	49 Neutral	¥14.69B	―	―	―	1.24%	-33.41%
4599	47 Neutral	¥16.96B	-8.77	―	―	―	5.58%
7776	43 Neutral	¥15.15B	-14.61	―	―	-42.49%	-2.37%
4593	39 Underperform	¥54.84B	―	―	―	-82.33%	47.73%
4894	33 Underperform	¥55.07B	-82.47	―	―	1772.85%	16.16%

Healios KK Corporate Events

Healios Partners with Kyushu University for Brain Tumor Therapy Research

Healios K.K. has entered into a joint research agreement with Kyushu University’s Department of Neurosurgery to study the use of CAR-eNK cells in treating brain tumors. This collaboration aims to evaluate the antitumor effects of these genetically modified cells, potentially enhancing cancer treatment options and reinforcing Healios’ position in the regenerative medicine industry.

The most recent analyst rating on (JP:4593) stock is a Hold with a Yen476.00 price target. To see the full list of analyst forecasts on Healios KK stock, see the JP:4593 Stock Forecast page.

Healios Ends Alliance with Nikon, Plans CDMO Expansion

Healios K.K. has announced the termination of its business and capital alliance with Nikon Corporation, initially formed to promote regenerative medicine commercialization. The decision follows a strategic reassessment by both companies, leading them to pursue independent paths. Healios plans to expand its operations as a Contract Development and Manufacturing Organization (CDMO) in 2025, focusing on regenerative and cellular medicine, with no expected impact on its 2025 financial results.

The most recent analyst rating on (JP:4593) stock is a Hold with a Yen476.00 price target. To see the full list of analyst forecasts on Healios KK stock, see the JP:4593 Stock Forecast page.

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.