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

• Market Cap: ¥7.46B
• Dividend Yield: 1.24%
• Average Volume (3M): 77.65K
• Price to Earnings (P/E): 938.7
• Beta (1Y): 0.76
• Revenue Growth: -14.78%
• EPS Growth: -95.53%
• Country: JP
• Employees: 151
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.70
• Shares Outstanding: 19,847,778
• 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): -6.1
• Revenue Forecast (FY): ¥3.45B

• Rating: 57 Neutral
• Price Target: ¥383.00 ▼(-4.01% Downside)
• Action: Reiterated Date: 01/08/26
• Date: Action: Reiterated 01/08/26

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 ~26.5% indicates growing demand or successful commercialization, strengthening the top line over multiple periods. A larger revenue base supports scale economics and funds ongoing R&D and development programs, improving long-term viability.

Conservative Balance Sheet

Extremely low leverage and a healthy equity ratio materially reduce financial risk and interest burden. This balance sheet conservatism provides flexibility to fund costly biotech development cycles, endure clinical or market setbacks, and pursue opportunistic investments.

Operating Cash Generation

Strong operating cash conversion versus reported net income signals core operations generate real cash, supporting ongoing operations and R&D funding. Over 2–6 months this resilience helps cover near-term obligations even if free cash flow conversion is under pressure.

Negative Factors

Profit Margin Collapse

A dramatic drop in net margin erodes fundamental earnings power and long-term reinvestment capacity. Such compression suggests rising costs or one-off losses that materially weaken sustainable profitability and make funding R&D or margin recovery more challenging.

ROE Deterioration

The steep fall in return on equity indicates the company is generating almost no return on invested capital, undermining shareholder value creation. Persistently low ROE reduces ability to attract capital and signals efficiency or profitability issues that are structural if not addressed.

Weak Free Cash Flow Conversion

Declining free cash flow growth and poorer FCF-to-income conversion constrain the company's ability to self-fund development, debt repayment, or dividends. Over months this limits strategic flexibility and increases dependency on external financing for capital-intensive biotech programs.

CellSource Co., Ltd. Business Overview & Revenue Model

Company Description

CellSource Co., Ltd. engages in the regenerative medicine-related and consumer businesses. It also offers Signalift, an anti-aging product. The company was incorporated in 2015 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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CellSource Co., Ltd. Financial Statement Overview

Summary

Revenue grew strongly (+26.49%), and the balance sheet is low-risk with minimal leverage (debt-to-equity 0.009). However, profitability deteriorated sharply (net margin fell to 0.29% from 20.47%), ROE declined to 0.18%, and free cash flow trends are negative, limiting the overall financial score.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	3.71B	4.36B	4.51B	4.27B	2.92B
Gross Profit	2.09B	2.36B	3.16B	3.05B	2.06B
EBITDA	371.03M	282.38M	1.29B	1.63B	1.05B
Net Income	10.66M	237.94M	923.14M	1.02B	651.40M
Balance Sheet
Total Assets	7.11B	7.17B	6.89B	4.60B	3.37B
Cash, Cash Equivalents and Short-Term Investments	4.71B	4.32B	4.78B	3.12B	2.41B
Total Debt	56.72M	77.29M	97.54M	0.00	1.10M
Total Liabilities	1.10B	1.13B	689.49M	815.72M	645.58M
Stockholders Equity	6.02B	6.04B	6.20B	3.79B	2.72B
Cash Flow
Free Cash Flow	289.90M	98.47M	498.62M	752.89M	843.36M
Operating Cash Flow	333.10M	591.72M	846.69M	847.60M	898.19M
Investing Cash Flow	-3.29M	-614.96M	-624.08M	-169.39M	-256.12M
Financing Cash Flow	61.07M	-437.24M	1.45B	14.42M	9.35M

CellSource Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 399.00
• 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:4880, the sentiment is Negative. The current price of 399 is above the 20-day moving average (MA) of 391.80, below the 50-day MA of 404.04, and below the 200-day MA of 536.39, indicating a bearish trend. The MACD of -7.74 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 48.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥7.46B	938.74	―	1.24%	-14.78%	-95.53%
4978	56 Neutral	¥16.11B	120.78	―	―	1.24%	-33.41%
7774	54 Neutral	¥26.19B	-34.16	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4593	50 Neutral	¥53.60B	-13.30	―	―	-82.33%	47.73%
7776	49 Neutral	¥12.12B	-8.14	―	―	-42.49%	-2.37%
4599	43 Neutral	¥19.06B	-11.30	―	―	―	11.34%

CellSource Co., Ltd. Corporate Events

CellSource Sees January Contract Processing Growth Led by Hybrid Orthopedics

CellSource Co., Ltd. operates in the medical and biotechnology services sector, focusing on contract processing of blood-derived products for clinical applications. Its primary business serves departments such as self-funded and hybrid orthopedics, OB&GYN, and aesthetic medicine, with a market focus on supporting medical institutions through processing services and related business support offerings.

The company reported a year-on-year increase in the daily average number of contract processing orders to 54.3 in January 2026, driven mainly by growth in hybrid orthopedics and OB&GYN, despite declines in self-funded orthopedics and aesthetic medicine. Monthly orders for blood-derived products fell 5.7% in self-funded orthopedics to 705 but rose 11.6% in hybrid orthopedics to 761, reflecting the impact of strengthened business support for medical corporations and targeted measures at key medical institutions, which suggest a shifting demand mix within its core healthcare markets.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen455.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource to Shift Listing to TSE Standard Market After Falling Short of Prime Criteria

CellSource has disclosed that, as of October 31, 2025, it no longer meets the Prime Market’s continued listing criterion for market capitalization of tradable shares, although it continues to satisfy the other Prime Market requirements. To address this and align its listing venue with its current business scale and market conditions, the board has resolved to apply to move its listing from the TSE Prime Market to the TSE Standard Market during the fiscal year ending October 2026, a segment in which it already complies with all continued listing criteria. Management argues that transitioning to the Standard Market, which still secures a certain level of governance and liquidity, is the optimal framework to avoid potential designation as a security under supervision or delisting risk, while supporting the company’s mission in regenerative medicine, maintaining investor confidence, and linking future business growth to improved profitability and long-term corporate value.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen455.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Seeks Shift From TSE Prime to Standard Market After Performance Slump

CellSource Co., Ltd. has resolved to apply to move its listing from the Tokyo Stock Exchange Prime Market to the Standard Market after weak business performance in the fiscal year ended October 31, 2025 caused it to fall below the Prime Market’s continued listing requirement of at least ¥10 billion in market capitalization of tradable shares. While acknowledging it would be difficult to meet the Prime criteria in the current environment, the company said the Standard Market, which still ensures a certain level of governance and liquidity, better matches its present business scale and market conditions, and that it already satisfies all the Standard Market listing examination criteria. The timing of approval remains undecided and the application could still be rejected if requirements are ultimately deemed unmet, but CellSource emphasized it will continue working to enhance its corporate value over the medium to long term and will disclose further developments as needed.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen455.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Sees December Contract Processing Orders Rise on Hybrid Orthopedics Growth

CellSource reported that its daily average number of contract processing orders in December 2025 rose year-on-year to 48.0, driven mainly by growth in hybrid orthopedics and aesthetic medicine despite declines in self-funded orthopedics and OB&GYN orders. By department, monthly orders for self-funded orthopedics fell 3.8% to 708 while hybrid orthopedics increased 7.7% to 586, with the company attributing the hybrid segment’s growth to targeted measures at key medical institutions and noting that its enhanced business support for medical corporations continues even as some order volumes soften, underscoring a shift in demand mix within its blood-derived product services portfolio.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen455.00 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. 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.