FunPep Company Limited (4881) AI Stock Analysis

• Market Cap: ¥3.41B
• Dividend Yield: N/A
• Average Volume (3M): 245.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -16.23%
• EPS Growth: -51.84%
• Country: JP
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -7.99
• Shares Outstanding: 40,563,800
• 10 Day Avg. Volume: 262,310
• 30 Day Avg. Volume: 245,823
• PEG Ratio: 0.22
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 612.65
• P/FCF Ratio: -6.98
• 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: 50 Neutral
• Price Target: ¥96.00 ▲(21.52% Upside)

The score is held down primarily by sustained losses and ongoing cash burn, despite a strong no-debt balance sheet. Technicals provide some support via positive momentum, but overbought signals temper the near-term setup, and valuation remains challenging due to negative earnings and no dividend data.

Positive Factors

Conservative balance sheet

A zero-debt balance sheet with a meaningful equity base reduces refinancing and interest-rate risk, giving management flexibility to fund R&D, clinical programs or commercialization without immediate debt pressure. This structural strength extends the company’s runway versus leveraged peers.

2024 revenue rebound

A large year-over-year revenue rebound signals improving commercial traction or successful product/partnership execution. If sustained, this revenue momentum can help scale fixed-cost absorption and create a pathway toward improved margins and longer-term operational sustainability.

Earnings and cash alignment

FCF tracking net losses indicates reported losses reflect real cash outflows rather than non-cash accounting charges. This transparency supports more reliable forecasting of funding needs and reduces risk of surprise adjustments, aiding long-term financial planning and investor assessment.

Negative Factors

Structural unprofitability

Consistently negative gross profit and heavy operating losses show the business model currently fails to cover direct costs. Without durable margin improvement, the company will struggle to achieve sustainable profitability, necessitating costly restructuring or clear commercial breakthroughs to change the trajectory.

Persistent cash burn

Substantial negative operating and free cash flow imply ongoing reliance on external funding. Over multiple quarters this increases dilution or financing needs, constrains investment in growth or trials, and raises execution risk if capital markets or funding sources tighten over the medium term.

Negative returns on equity

A material negative ROE indicates the company is eroding shareholder value rather than generating returns on capital. Persistently negative returns reduce investor confidence and make new capital more costly, complicating long-term funding and strategic options unless operating performance materially improves.

FunPep Company Limited Business Overview & Revenue Model

Company Description

FunPep Company Limited engages in the research and development of pharmaceuticals drugs, functional cosmetics, and medical devices based on functional peptides. The company is developing SR-0379, a functional peptide for skin ulcer; FPP003, an antibody-inducing peptide that is in Phase II clinical study for the treatment of psoriasis in Australia, as well as phase II clinical trial for ankylosing spondylitis in Japan; and FPP004X, an antibody-inducing peptide for pollinosis. It is also developing FPP006, a corona peptide vaccine; and FPP005, a antibody including peptide for psoriasis. FunPep Company Limited was incorporated in 2013 and is based in Tokyo, Japan.

How the Company Makes Money

FunPep Company Limited generates revenue primarily through the development and commercialization of its peptide-based drugs. The company earns income by licensing its proprietary technologies and products to pharmaceutical companies and healthcare organizations. Additionally, FunPep may benefit from research and development collaborations, where it partners with other entities to co-develop treatments and shares in the resultant profits. The company's earnings are also bolstered by potential government grants or funding for research initiatives, as well as milestone payments and royalties from successfully commercialized drugs.

FunPep Company Limited Financial Statement Overview

Summary

Despite a sharp 2024 revenue rebound, profitability remains structurally weak with negative gross profit and large operating/net losses. The balance sheet is a strength with zero debt and meaningful equity, but persistent negative operating/free cash flow indicates ongoing reliance on external funding.

Income Statement

Revenue rebounded sharply in 2024 (+74.8% YoY), but the business remains deeply unprofitable with large operating and net losses. Profitability is structurally weak: gross profit is negative and margins are heavily negative across the period, indicating costs far exceed revenue. While losses narrowed modestly versus 2022–2023, the company still shows no clear path to near-term earnings sustainability based on current results.

Balance Sheet

The balance sheet is conservatively levered with zero debt and a meaningful equity base (equity of ~2.55B vs. assets of ~3.11B in 2024), which reduces financial risk and gives flexibility to fund operations. However, returns on equity are consistently negative (2024 ROE about -35%), reflecting continued value erosion from ongoing losses. Equity has also fluctuated over time, highlighting the pressure from persistent cash burn.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are consistently negative (2024 operating cash flow about -537M; free cash flow about -538M), implying continued reliance on external funding over time. A positive factor is that free cash flow broadly tracks reported net losses (free cash flow to net income ~1.0 in recent years), suggesting earnings quality is not artificially boosted by non-cash items—but the underlying direction remains cash outflow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.03M	6.13M	530.00K	1.07M	126.87M	2.97M
Gross Profit	-38.13M	-37.86M	-680.29M	-12.84M	-535.63M	-362.01M
EBITDA	-1.36B	-859.23M	-952.00M	-1.16B	-745.04M	-563.52M
Net Income	-1.40B	-889.09M	-933.42M	-1.17B	-682.26M	-507.93M
Balance Sheet
Total Assets	3.01B	3.11B	2.49B	2.99B	3.36B	3.72B
Cash, Cash Equivalents and Short-Term Investments	2.33B	2.35B	1.79B	2.25B	3.01B	3.62B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	538.78M	563.18M	189.32M	298.11M	188.67M	152.09M
Stockholders Equity	2.47B	2.55B	2.30B	2.69B	3.18B	3.57B
Cash Flow
Free Cash Flow	0.00	-537.60M	-989.87M	-1.07B	-892.79M	-413.95M
Operating Cash Flow	0.00	-536.74M	-988.82M	-1.05B	-887.47M	-413.95M
Investing Cash Flow	0.00	-30.83M	-1.05M	-19.14M	-4.75M	0.00
Financing Cash Flow	0.00	1.12B	537.81M	245.13M	282.68M	3.14B

FunPep Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4881, the sentiment is Negative. The current price of 79 is below the 20-day moving average (MA) of 86.90, below the 50-day MA of 84.28, and below the 200-day MA of 100.89, indicating a bearish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 4.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4881.

FunPep Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4570	72 Outperform	¥14.11B	44.21	―	―	12.91%	37.96%
2385	58 Neutral	¥6.80B	40.68	―	2.08%	-10.24%	―
4594	53 Neutral	¥9.36B	-6.15	―	―	1221.43%	30.54%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4881	50 Neutral	¥3.41B	-1.91	―	―	-16.23%	-51.84%
4591	43 Neutral	¥4.51B	-3.50	―	―	-100.00%	7.60%
4884	42 Neutral	¥2.79B	-2.84	―	―	-9.77%	-13.86%