CellSource Co., Ltd. (4880) AI Stock Analysis

• Market Cap: ¥8.34B
• Dividend Yield: 1.24%
• Average Volume (3M): 77.65K
• Price to Earnings (P/E): 782.5
• Beta (1Y): 0.75
• Revenue Growth: -14.78%
• EPS Growth: -95.53%
• Country: JP
• Employees: 151
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -3.81
• Shares Outstanding: 19,819,962
• 10 Day Avg. Volume: 73,510
• 30 Day Avg. Volume: 77,646
• PEG Ratio: -9.83
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 2.70
• P/FCF Ratio: 34.51
• 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: 57 Neutral
• Price Target: ¥455.00 ▲(14.04% Upside)

The score is primarily driven by mixed financial performance: strong revenue growth and a very conservative balance sheet are offset by a steep decline in profitability, ROE, and weak free-cash-flow conversion. Technicals add pressure due to a broader downtrend with negative MACD, and valuation is a significant headwind given the extremely high P/E relative to current profitability.

Positive Factors

Revenue Growth

Sustained revenue expansion of +26.49% indicates durable commercial traction for CellSource's cellular therapies. Persistent top-line growth supports continued R&D and scaling of manufacturing, improving the odds of reaching profitable volumes and broader market adoption over months.

Conservative Balance Sheet

Extremely low leverage gives CellSource long-term financial flexibility critical for biotech development cycles. Minimal debt reduces bankruptcy risk, helps absorb trial setbacks, and enables management to prioritize R&D and strategic partnerships without near-term refinancing pressure.

Diversified Revenue Model & Partnerships

A multi-channel monetization strategy—direct sales, co-development, licensing and grant funding—creates structural resilience. Multiple commercialization pathways lower single-market dependency, share development costs with pharma partners, and increase chances of scalable revenue streams.

Negative Factors

Collapsed Net Margin

A plunge from 20.47% to 0.29% margin is a material deterioration in profitability that undermines internal funding for trials and commercialization. If margins remain compressed, the company may need external capital, slowing product rollouts and diluting long-term shareholder value.

Declining Return on Equity

ROE collapsing to 0.18% signals failing efficiency in converting shareholder equity into profits. Persistently low ROE reduces the appeal to long-term investors and suggests capital is not being deployed effectively into high-return programs, constraining organic growth.

Weak Free Cash Flow Conversion

Negative and declining free cash flow conversion limits the company's ability to self-fund trials, scale manufacturing, and commercial launches. Persistent FCF weakness forces reliance on dilutive financing or partnerships, which can delay programs and erode long-term shareholder value.

CellSource Co., Ltd. Business Overview & Revenue Model

Company Description

CellSource Co., Ltd. (4880) is a biotechnology company focused on the development and commercialization of innovative cellular therapies. The company operates primarily in the healthcare sector, specializing in stem cell research and regenerative medicine. CellSource's core products include advanced cellular treatments for various diseases and conditions, leveraging proprietary technology to enhance the efficacy and safety of therapies. The firm aims to transform patient care through its cutting-edge solutions that address unmet medical needs.

How the Company Makes Money

CellSource Co., Ltd. generates revenue primarily through the sale of its cellular therapy products and services, which are marketed to hospitals, clinics, and research institutions. The company's revenue model includes direct sales of its therapies as well as partnerships with pharmaceutical firms for co-development and licensing agreements. Additionally, CellSource may earn income through grants and funding for research and development projects in collaboration with academic institutions and government bodies. Significant partnerships with key players in the biotechnology and pharmaceutical industries further bolster its revenue streams, enabling shared resources and expanded market access.

CellSource Co., Ltd. Financial Statement Overview

Summary

CellSource Co., Ltd. shows strong revenue growth but struggles with profitability and cash flow. The balance sheet is robust with low leverage, yet declining return on equity and profit margins indicate operational inefficiencies.

Income Statement

CellSource Co., Ltd. has shown a mixed performance in its income statement. The company experienced a significant revenue growth of 26.49% in the latest year, which is a positive indicator. However, the net profit margin has decreased substantially from 20.47% in 2023 to just 0.29% in 2025, indicating a sharp decline in profitability. The gross profit margin remains relatively stable, but the EBIT and EBITDA margins have also decreased, suggesting increased operational costs or other financial pressures.

Balance Sheet

The balance sheet of CellSource Co., Ltd. reflects a strong equity position with a low debt-to-equity ratio of 0.009, indicating minimal leverage and financial risk. The equity ratio is also healthy, showing that the company is primarily financed through equity. However, the return on equity has significantly decreased from 14.88% in 2023 to 0.18% in 2025, suggesting declining efficiency in generating returns from shareholders' equity.

Cash Flow

The cash flow statement shows a concerning trend with a significant decline in free cash flow growth, which was negative in recent years. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, reflecting challenges in converting income into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.82B	3.71B	4.36B	4.51B	4.27B	2.92B
Gross Profit	1.60B	2.09B	2.42B	3.18B	3.06B	2.07B
EBITDA	283.02M	315.48M	449.53M	1.31B	1.64B	1.06B
Net Income	86.28M	10.66M	237.94M	923.14M	1.02B	651.40M
Balance Sheet
Total Assets	7.31B	7.02B	7.07B	6.88B	4.60B	3.37B
Cash, Cash Equivalents and Short-Term Investments	4.63B	4.71B	4.32B	4.78B	3.12B	2.41B
Total Debt	241.08M	56.72M	77.29M	97.54M	0.00	1.10M
Total Liabilities	1.22B	1.01B	1.04B	677.74M	814.15M	645.00M
Stockholders Equity	6.09B	6.02B	6.04B	6.20B	3.79B	2.72B
Cash Flow
Free Cash Flow	0.00	289.90M	52.04M	487.69M	748.44M	836.74M
Operating Cash Flow	0.00	333.10M	591.72M	846.69M	847.60M	898.19M
Investing Cash Flow	0.00	-3.29M	-614.96M	-624.08M	-169.39M	-256.12M
Financing Cash Flow	0.00	61.07M	-437.24M	1.45B	14.42M	9.35M

CellSource Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 399.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4880, the sentiment is Neutral. The current price of 399 is below the 20-day moving average (MA) of 405.35, below the 50-day MA of 460.70, and below the 200-day MA of 596.15, indicating a neutral trend. The MACD of -13.52 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 68.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4880.

CellSource Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4880	57 Neutral	¥8.34B	782.53	―	1.24%	-14.78%	-95.53%
7096	56 Neutral	¥8.54B	42.69	―	―	2.99%	-52.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4888	51 Neutral	¥8.27B	-45.93	―	―	248.15%	76.92%
4978	49 Neutral	¥14.12B	-50.65	―	―	1.24%	-33.41%
7776	47 Neutral	¥10.06B	-9.53	―	―	-42.49%	-2.37%
4599	43 Neutral	¥17.49B	-9.14	―	―	―	11.34%

CellSource Co., Ltd. Corporate Events

CellSource Co., Ltd. Terminates Stock Transfer Agreement Amid Management Changes

CellSource Co., Ltd. has announced the termination of a stock transfer option agreement involving its major shareholder and former CEO, Takashi Sawada, effective December 15, 2025. This decision follows a transition in the company’s management structure, with Mr. Sawada moving to the role of Chairman of the Board and set to retire in January 2026. The termination reflects a shift in the company’s strategic focus and the altered purpose of the original agreement, aiming to align with the new management’s objectives.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Co., Ltd. Expands Business Scope with Article Amendments

CellSource Co., Ltd. announced a resolution to amend its Articles of Incorporation to reflect its business expansion and diversification. The proposed amendments, to be discussed at the upcoming shareholders’ meeting, include adding new business purposes such as fitness-related services, consulting, and real estate management, indicating a strategic shift to broaden its market reach and operational capabilities.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Co., Ltd. Announces Dividend Amidst Income Decline

CellSource Co., Ltd. announced a dividend distribution despite a decline in net income due to changes in support agreements with medical institutions. The company aims to balance growth investments with stable shareholder returns, maintaining a dividend of 5.00 yen per share for the fiscal year ended October 31, 2025, exceeding their usual payout ratio.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Co., Ltd. Reports Fiscal Year 2025 Financial Results

CellSource Co., Ltd. reported its consolidated financial results for the fiscal year ended October 31, 2025, showing net sales of ¥3,711 million and a modest profit attributable to owners of the parent of ¥10 million. The company has prepared consolidated financial statements for the first time this fiscal year, making year-on-year comparisons unavailable. Despite a positive equity-to-asset ratio of 84.0%, the company forecasts a decrease in net sales and a loss for the next fiscal year, indicating potential challenges ahead.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Co., Ltd. Transitions to TSE Standard Market

CellSource Co., Ltd. has announced its decision to transition from the Prime Market to the Standard Market of the Tokyo Stock Exchange. This strategic move is aimed at enhancing corporate value over the medium to long term by optimizing management resources and strengthening corporate governance, while continuing to meet stakeholder expectations.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Co., Ltd. Reports Deferred Tax Asset Write-Down and Financial Forecast Discrepancies

CellSource Co., Ltd. announced a write-down of deferred tax assets and a discrepancy between its financial forecasts and actual results for the fiscal year ending October 31, 2025. The company reported lower net sales, operating profit, and ordinary profit than previously forecasted, primarily due to unmet order plans in its core businesses and an inability to fully offset decreased revenue despite managing expenses. The net income was significantly impacted by a deferred income tax expense from the write-down.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Reports Significant Growth in October 2025 Contract Orders

CellSource Co., Ltd. reported a significant increase in contract processing orders for October 2025, with notable growth in the orthopedics and OB&GYN departments. The company achieved a 68% increase in hybrid orthopedics orders and a 28% rise in OB&GYN orders, reflecting the success of strategic measures implemented throughout the fiscal period.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen547.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.