Healios KK (4593) AI Stock Analysis

• Market Cap: ¥35.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• 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: ¥800.00
• Price Target Upside: 163.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ¥286.00 ▼(-5.92% Downside)

Healios KK's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. Technical analysis suggests bearish momentum, although oversold conditions may offer a potential short-term rebound. Valuation metrics are unattractive due to negative profitability and lack of dividends.

Positive Factors

Free Cash Flow Growth

Positive free cash flow growth indicates potential for future investment and operational flexibility, supporting long-term sustainability.

Strategic Partnerships

Strategic partnerships enhance credibility and market reach, providing financial support and aiding in product development and commercialization.

Innovative Therapies

Innovative therapies in regenerative medicine position the company to address significant market needs, potentially driving long-term growth.

Negative Factors

Declining Revenue

Declining revenue growth undermines financial stability and limits the company's ability to invest in future growth opportunities.

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to manage debt and invest in strategic initiatives.

Negative Profitability Margins

Negative profitability margins reflect operational inefficiencies and financial distress, hindering long-term growth and shareholder value.

Healios KK Business Overview & Revenue Model

Company Description

Healios KK (4593) is a biotechnology company based in Japan that focuses on the research, development, and commercialization of innovative therapies and solutions for various medical conditions. The company primarily operates in the healthcare sector, with a strong emphasis on regenerative medicine and cell therapy. Healios aims to address unmet medical needs through its core products, which include advanced treatments for neurological disorders, cancer, and other serious illnesses, leveraging cutting-edge technologies and scientific research.

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, with declining revenues, substantial losses, and high leverage. The income statement, balance sheet, and cash flow analyses all indicate severe financial challenges.

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	97.00M	560.00M	121.00M	90.00M	41.00M	27.00M
Gross Profit	-278.00M	432.00M	108.00M	90.00M	41.00M	27.00M
EBITDA	-1.09B	-2.54B	-3.16B	-4.52B	-3.61B	-3.97B
Net Income	-3.89B	-4.24B	-3.82B	-5.17B	-4.91B	-5.51B
Balance Sheet
Total Assets	17.33B	14.19B	15.15B	15.03B	23.97B	23.17B
Cash, Cash Equivalents and Short-Term Investments	6.50B	3.67B	6.72B	7.25B	15.13B	13.92B
Total Debt	2.63B	2.66B	4.53B	7.15B	11.96B	11.40B
Total Liabilities	14.37B	12.11B	11.29B	10.65B	15.33B	15.32B
Stockholders Equity	2.94B	2.06B	3.86B	4.38B	8.64B	7.84B
Cash Flow
Free Cash Flow	-2.98B	-1.83B	-2.85B	-4.86B	-5.39B	-4.26B
Operating Cash Flow	-2.90B	-1.82B	-2.82B	-4.60B	-5.09B	-3.94B
Investing Cash Flow	-1.59B	-1.42B	-1.12B	-909.00M	-736.00M	-1.22B
Financing Cash Flow	6.41B	77.00M	3.34B	-2.50B	6.99B	803.00M

Healios KK Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 304.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 304 is below the 20-day moving average (MA) of 392.95, below the 50-day MA of 443.72, and below the 200-day MA of 440.81, indicating a bearish trend. The MACD of -46.91 indicates Positive momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.20 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	¥18.68B	-46.55	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4978	49 Neutral	¥13.93B	-49.97	―	―	1.24%	-33.41%
4599	47 Neutral	¥16.30B	-8.52	―	―	―	11.34%
7776	43 Neutral	¥8.46B	-8.21	―	―	-42.49%	-2.37%
4593	38 Underperform	¥35.10B	-7.73	―	―	-82.33%	47.73%
4894	33 Underperform	¥48.56B	-72.40	―	―	1772.85%	16.16%

Healios KK Corporate Events

Healios K.K. Releases FY2025 Q3 Financial Results

Healios K.K. has released its financial results for the third quarter of fiscal year 2025. The announcement provides insights into the company’s current financial standing and strategic direction, which could impact its operations and market position in the regenerative medicine sector. Stakeholders should consider the potential implications of these results on future company performance.

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.

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.