StemRIM Inc. (4599) AI Stock Analysis

• Market Cap: ¥20.94B
• Dividend Yield: N/A
• Average Volume (3M): 218.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -100.00%
• EPS Growth: -1079.89%
• Country: JP
• Employees: 44
• Sector: Healthcare
• Sector Strength: 46
• Industry: Biotechnology
• EPS (TTM): -6.76
• Shares Outstanding: 62,136,200
• 10 Day Avg. Volume: 166,200
• 30 Day Avg. Volume: 218,010
• PEG Ratio: -3.04
• Price to Book (P/B): 5.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.00
• 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

• Rating: 47 Neutral
• Price Target: ―

StemRIM Inc.'s overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue and ongoing net losses. While the company maintains a solid equity base, the lack of profitability and negative cash flows present significant risks. Technical analysis shows some short-term momentum but longer-term weakness. Valuation metrics are unattractive due to negative earnings. Overall, the company's current financial challenges overshadow potential strengths, leading to a cautious outlook.

StemRIM Inc. Business Overview & Revenue Model

Company Description

StemRIM Inc. (4599) is a biotechnology company focused on the research and development of regenerative medicine technologies. The company operates within the healthcare sector, specifically targeting the development of therapies that promote tissue regeneration and repair. StemRIM's core products and services include regenerative medicine research, therapeutic development, and potential clinical applications aimed at treating various medical conditions.

How the Company Makes Money

StemRIM Inc. generates revenue primarily through the development and commercialization of regenerative medicine therapies. This includes income from licensing agreements, research collaborations, and potential partnerships with pharmaceutical companies and research institutions. The company may also receive funding from grants and government research initiatives aimed at advancing regenerative medicine. Additionally, as its therapies advance through clinical trials, StemRIM could earn revenue from milestone payments and eventual product sales upon regulatory approval.

StemRIM Inc. Financial Statement Overview

Summary

StemRIM Inc. faces significant financial challenges, evidenced by its declining revenue, persistent net losses, and negative cash flows. Despite a solid equity base and low leverage, the company's current financial trajectory is concerning. The biotech sector's inherent risks, coupled with the company's operational inefficiencies, underscore the need for strategic shifts to stabilize and grow revenue streams sustainably.

Income Statement

StemRIM Inc.'s income statement reflects significant volatility in revenue and profitability. There is a marked revenue collapse from 2.35 billion JPY in 2023 to zero in 2024, accompanied by substantial net losses over the years. The gross and net profit margins are negative, indicating high operational costs relative to revenue. The EBIT and EBITDA margins are also negative, further reflecting operational inefficiencies. Overall, the company's profitability is weak, and the recent revenue drop raises concerns about its growth potential.

Balance Sheet

The balance sheet of StemRIM Inc. shows a strong equity base with a high equity ratio due to minimal debt, resulting in a low debt-to-equity ratio. This financial structure suggests low leverage risk. However, the consistent net losses have impacted the company's return on equity, which remains negative. The high cash reserves provide liquidity, but the declining asset base could be a concern if not addressed through revenue growth.

Cash Flow

The cash flow statement indicates a challenging cash flow situation with negative operating and free cash flows in 2024, highlighting cash burn issues. The free cash flow growth rate is negative, and the ratios of operating and free cash flow to net income are weak due to ongoing losses. This situation suggests potential difficulties in sustaining operations without external financing if the revenue situation does not improve.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	0.00	2.35B	22.98M	1.40B	2.10B
	Gross Profit
-33.35M	-44.35M	2.30B	22.98M	1.40B	2.10B
	EBIT
-2.16B	-2.08B	142.39M	-1.98B	-593.73M	415.71M
	EBITDA
-2.10B	-2.03B	218.05M	-1.90B	-532.23M	369.06M
	Net Income Common Stockholders
-2.12B	-2.02B	168.35M	-1.95B	-582.45M	347.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.02B	8.41B	10.22B	8.88B	10.17B	10.68B
	Total Assets
8.67B	9.08B	10.71B	9.60B	10.91B	11.28B
	Total Debt
0.00	0.00	531.00K	3.67M	6.73M	9.71M
	Net Debt
-8.02B	-8.41B	-10.22B	-8.88B	-10.17B	-10.67B
	Total Liabilities
273.69M	185.88M	336.02M	192.43M	212.64M	431.36M
	Stockholders Equity
8.40B	8.89B	10.37B	9.40B	10.70B	10.85B
Cash Flow		Free Cash Flow
0.00	-1.88B	1.13B	-1.40B	-609.23M	422.44M
	Operating Cash Flow
0.00	-1.88B	1.14B	-1.40B	-519.65M	575.41M
	Investing Cash Flow
0.00	-4.78M	-344.00K	-330.00K	-92.72M	-153.71M
	Financing Cash Flow
0.00	78.97M	202.60M	112.86M	109.32M	7.76B

StemRIM Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 347.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4599, the sentiment is Positive. The current price of 347 is above the 20-day moving average (MA) of 320.30, above the 50-day MA of 310.70, and above the 200-day MA of 342.37, indicating a neutral trend. The MACD of 7.48 indicates Negative momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 58.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4599.

StemRIM Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4151	75 Outperform	$1.30T	25.47	6.04%	2.33%	8.90%	-37.00%
4503	71 Outperform	$2.49T	48.68	3.22%	5.36%	19.25%	294.48%
4523	70 Neutral	¥1.14T	24.63	5.34%	3.97%	6.42%	10.82%
4568	67 Neutral	$6.44T	22.15	17.60%	1.74%	17.77%	48.97%
4502	65 Neutral	$6.89T	63.56	1.50%	4.52%	7.45%	-25.77%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
4599	47 Neutral	¥20.94B	―		―	-100.00%	-1079.89%

StemRIM Inc. Corporate Events

StemRIM Inc. Announces Shareholder Meeting and Capital Reduction

StemRIM Inc. has announced the setting of a record date for an Extraordinary General Meeting of Shareholders and a capital stock reduction. The capital reduction aims to enhance financial flexibility and reduce tax burdens without affecting the company’s net assets or shareholders’ equity. This strategic financial maneuver is expected to streamline StemRIM’s capital policies, subject to shareholder approval, and reflects the company’s commitment to maintaining operational efficiency.

StemRIM Secures Chinese Patent for Redasemtide, Boosting Global Expansion

StemRIM Inc. has secured a patent in China for its peptide drug Redasemtide, aimed at treating traumatic articular cartilage deficiency syndrome, osteoarthritis, and osteochondritis dissecans. This patent is expected to enhance the development potential of Redasemtide in China, a rapidly growing pharmaceutical market, and support the global expansion of StemRIM’s ‘Regeneration-Inducing Medicine™’. While the immediate financial impact is minimal, the patent positions StemRIM strategically in the global biotech industry.

StemRIM’s Redasemtide Trial Advances with Promising Interim Results

StemRIM Inc. announced the interim analysis results of its global Phase 2b clinical trial for Redasemtide, a treatment for acute ischemic stroke, conducted in collaboration with Shionogi & Co., Ltd. The trial, which spans 18 countries, aims to evaluate Redasemtide’s efficacy in patients not eligible for endovascular recanalization therapy. The interim analysis recommended continuing the trial for the 1.5 mg/kg dose group while discontinuing the 0.75 mg/kg group, aligning with initial expectations and potentially reducing the required number of subjects. This development is significant for the clinical advancement of Redasemtide, although it currently has no impact on StemRIM’s financial results for the fiscal year ending July 31, 2025.

StemRIM Inc. Reports Financial Loss Amid Ongoing R&D Investments

StemRIM Inc. reported a net loss for the six months ending January 31, 2025, with no operating revenue recorded. The company’s financial position showed a decrease in total assets and net assets compared to the previous period. Despite the financial challenges, StemRIM remains committed to its R&D efforts, with significant cash outflows expected for research and development through 2028. The company has not provided a financial forecast for the fiscal year ending July 31, 2025, due to the unpredictable nature of milestone revenues from development partnerships.

StemRIM Amends Phase 2b Trial Protocol for Stroke Treatment

StemRIM Inc. announced a protocol amendment for its global Phase 2b clinical trial of Redasemtide, a treatment for acute ischemic stroke, which is being conducted in collaboration with Shionogi & Co., Ltd. The amendment includes adding a new cohort of patients who have undergone endovascular recanalization therapy and relaxing eligibility criteria, allowing broader patient participation without significantly extending the trial period. This adjustment is crucial as the market for ischemic stroke treatments is expected to reach $10.56 billion by 2027, and the changes aim to adapt to the evolving treatment landscape.