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

• Market Cap: ¥7.96B
• Dividend Yield: 1.24%
• Average Volume (3M): 77.65K
• Price to Earnings (P/E): 59.4
• Beta (1Y): 0.77
• 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: ¥430.00 ▲(7.77% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by mixed financial performance—good revenue growth and a strong, low-leverage balance sheet offset by a sharp drop in profitability, ROE, and pressured free-cash-flow trends. Weak technical signals and a negative P/E further weigh on the outlook, while the modest dividend provides only limited support.

Positive Factors

Strong recent revenue growth

Reported 26.49% revenue growth signals durable demand for CellSource's products and services. Sustained top-line expansion supports operational scale, funds R&D and commercial activities, and provides management flexibility to address profitability pressures over the next 2–6 months.

Very low financial leverage

A debt-to-equity ratio of 0.009 indicates minimal leverage and low financial risk. This strong balance sheet gives the company durable financial flexibility to fund operating needs, invest in growth or absorb shocks without pressing refinancing, supporting stability over months.

Strong operating cash generation vs. net income

A robust operating cash flow to net income ratio shows the business converts reported earnings into cash, evidencing underlying cash generation from operations. This operational cash strength supports near-term working capital, R&D spend, and strategic initiatives despite weaker free cash flow conversion.

Negative Factors

Sharp collapse in profitability

Net margin plunging to 0.29% indicates a material deterioration in profitability, likely from rising costs or one-time charges. This erosion constrains internal funding for growth, undermines resilience to shocks, and makes margin recovery a multi-month operational priority for sustainable performance.

Return on equity collapsed

ROE falling to 0.18% signals a sharp drop in the efficiency of shareholder capital deployment. Over a 2–6 month horizon, persistently low ROE raises concerns about capital allocation, management effectiveness, and the firm's ability to generate acceptable shareholder returns without strategic remediation.

Negative free cash flow trend

A sustained decline to negative free cash flow limits the company's ability to self-fund investments, R&D, or dividends despite low debt. Over several months this reduces strategic optionality and may force prioritization of projects or external financing if conversion to positive FCF is not restored.

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

Strong revenue growth (+26.49%) and a very low debt-to-equity ratio (0.009) support stability, but profitability has deteriorated sharply (net margin down to 0.29% in 2025) and return on equity fell to 0.18%. Cash flow is mixed with negative free-cash-flow growth and weaker conversion to free cash flow.

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: 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 above the 20-day moving average (MA) of 390.95, below the 50-day MA of 402.60, and below the 200-day MA of 532.02, indicating a neutral trend. The MACD of -3.38 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.77 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	¥7.96B	59.41	―	1.24%	-14.78%	-95.53%
4978	56 Neutral	¥16.02B	120.78	―	―	1.24%	-33.41%
7774	54 Neutral	¥24.81B	-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	¥12.00B	-8.14	―	―	-42.49%	-2.37%
4599	43 Neutral	¥18.55B	-11.30	―	―	―	11.34%

CellSource Co., Ltd. Corporate Events

CellSource to Shift Listing to TSE Standard Market After Missing Prime Criteria

CellSource Co., Ltd. has received approval from the Tokyo Stock Exchange to transfer its listing from the Prime Market to the Standard Market, effective March 24, 2026, after failing to meet the Prime segment’s tradable share market capitalization requirement as of October 31, 2025. With this move, the company is withdrawing its previously announced plan to restore compliance with Prime Market criteria and instead will focus on strengthening profitability and linking business growth to long-term corporate value under the Standard Market’s governance and liquidity framework, while emphasizing continued commitment to regenerative medicine and meeting stakeholder expectations.

Management presented the transition as a strategic step that aligns listing requirements with the company’s current market profile, potentially easing the pressure of Prime-level thresholds while still maintaining access to public capital markets. By prioritizing cost-of-capital-conscious growth and profitability improvements in the Standard Market, CellSource aims to stabilize its listing status and reassure shareholders and investors of its intention to deliver sustainable value over the medium to long term.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen377.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Returns to Quarterly Profit but Keeps Forecast for Full-Year Loss

CellSource reported consolidated net sales of ¥860 million for the three months ended January 31, 2026, a modest 1.3% year-on-year increase, and swung to an operating and ordinary profit of ¥59 million with profit attributable to owners of parent at ¥33 million. The return to profitability contrasts with losses a year earlier, while basic earnings per share recovered to ¥1.70 and the equity-to-asset ratio remained high at 84.7%, underscoring a relatively sound balance sheet despite slightly lower total assets.

The company maintained its dividend plan of paying no interim or year-end dividends for the fiscal year ending October 31, 2026, after having paid a ¥5.00 year-end dividend in the previous fiscal year. Management also kept its full-year forecast unchanged, projecting a 7.9% decline in net sales to ¥3,418 million and a return to a net loss with basic earnings per share of negative ¥6.90, signaling expectations of profit pressure over the full year despite the strong first-quarter turnaround and suggesting ongoing challenges for shareholders looking for stable earnings and dividends.

The most recent analyst rating on (JP:4880) stock is a Hold with a Yen377.00 price target. To see the full list of analyst forecasts on CellSource Co., Ltd. stock, see the JP:4880 Stock Forecast page.

CellSource Sees 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.