FunPep Company Limited (4881) AI Stock Analysis

• Market Cap: ¥4.06B
• Dividend Yield: N/A
• Average Volume (3M): 245.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -16.23%
• EPS Growth: -51.84%
• Country: JP
• Employees: 15
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -17.06
• Shares Outstanding: 40,563,800
• 10 Day Avg. Volume: 262,310
• 30 Day Avg. Volume: 245,823
• PEG Ratio: -0.03
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 9943.96
• P/FCF Ratio: -2.25
• 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): -34.5
• Revenue Forecast (FY): ¥500.00M

• Rating: 48 Neutral
• Price Target: ¥92.00 ▲(16.46% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by weak financial performance—persistent losses, highly volatile and contracting revenue, and ongoing negative operating/free cash flow—despite the benefit of having no debt. Technical indicators add only modest support with a short-to-medium-term recovery (price above 20/50/100DMA) but still below the 200DMA, while valuation is constrained by a negative P/E and no dividend yield.

Positive Factors

Debt-free balance sheet

Zero reported debt materially reduces near-term solvency risk and interest burden, giving management flexibility to pursue R&D or financing choices. Over 2-6 months this preserves optionality and lowers bankruptcy risk despite operating losses.

Lean operating structure

A very small headcount implies a lean cost base and lower fixed operating overhead, which can extend runway and allow targeted R&D spending. Sustained low personnel costs help stabilize cash burn dynamics versus larger peers.

Signs of FCF improvement (2024)

An improvement in free cash flow in 2024 indicates management achieved some cost or working-capital gains. If maintained, this trend can form a durable foundation for eventual cash-flow stabilization and reduce near-term funding needs.

Negative Factors

Persistent operating losses

Consistent negative gross margins and large annual net losses reflect structural unprofitability of core activities. Over months this undermines ability to self-fund R&D or commercialization and necessitates external capital absent a business-model inflection.

Severe revenue contraction

A ~95% year-over-year revenue collapse shows revenue generation is not resilient and likely dependent on episodic events. This weak top-line base increases execution risk and makes medium-term recovery and scale-up more uncertain.

Structural cash burn

Persistently negative operating cash flow, worsening to ~-¥1.39B in 2025, indicates the company cannot generate internal funding for operations. This creates a structural dependency on external financing and raises dilution and execution risk over the medium term.

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

Financial quality is weak: the income statement shows very small, highly volatile revenue with a sharp 2025 contraction (~95% YoY) and persistent large net losses (~¥1.9B). Cash flow is consistently negative with worsening operating cash flow in 2025 (~-¥1.39B), indicating ongoing cash burn and funding dependence. The main offset is a debt-free balance sheet, though equity and assets have declined over time, reducing financial cushion.

Income Statement

Revenue is small and highly volatile, with a sharp contraction in 2025 (down ~95% year over year) after an already low base. Profitability is consistently weak: gross profit is negative across all years, and operating losses and net losses remain very large (2025 net loss ~¥1.9B). While losses narrowed in some years versus prior peaks, the company has not demonstrated a sustained path toward break-even.

Balance Sheet

The balance sheet is conservatively levered with zero debt reported across periods, which reduces solvency risk. However, equity has declined meaningfully from 2020 to 2025, reflecting ongoing losses and cash burn. Total assets have also trended down over time, indicating a shrinking financial cushion despite the lack of leverage.

Cash Flow

Cash generation is structurally weak: operating cash flow and free cash flow are negative every year, with a notable deterioration in 2025 (operating cash flow about -¥1.39B). Although free cash flow improved in 2024 versus 2023, the overall pattern is persistent cash burn that likely requires continued funding support over time.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.03M	314.00K	6.13M	530.00K	1.07M	126.87M
Gross Profit	-38.13M	-41.58M	-37.86M	-680.29M	-12.84M	-535.63M
EBITDA	-1.36B	-1.61B	-859.23M	-952.00M	-1.16B	-745.04M
Net Income	-1.40B	-1.91B	-889.09M	-933.42M	-1.17B	-682.26M
Balance Sheet
Total Assets	3.01B	1.98B	3.11B	2.49B	2.99B	3.36B
Cash, Cash Equivalents and Short-Term Investments	2.33B	1.77B	2.35B	1.79B	2.25B	3.01B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	538.78M	516.73M	563.18M	189.32M	298.11M	188.67M
Stockholders Equity	2.47B	1.46B	2.55B	2.30B	2.69B	3.18B
Cash Flow
Free Cash Flow	0.00	-1.39B	-537.60M	-989.87M	-1.07B	-892.79M
Operating Cash Flow	0.00	-1.39B	-536.74M	-988.82M	-1.05B	-887.47M
Investing Cash Flow	0.00	-993.00K	-30.83M	-1.05M	-19.14M	-4.75M
Financing Cash Flow	0.00	810.93M	1.12B	537.81M	245.13M	282.68M

FunPep Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4881, the sentiment is Positive. The current price of 79 is below the 20-day moving average (MA) of 92.45, below the 50-day MA of 87.26, and below the 200-day MA of 100.37, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥15.70B	43.15	―	―	12.91%	37.96%
177A	67 Neutral	¥6.37B	11.43	―	1.62%	―	―
4571	52 Neutral	¥14.02B	-14.93	-26.70%	―	172.39%	8.27%
2183	52 Neutral	¥7.25B	-4.09	―	5.44%	-15.42%	-879.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4881	48 Neutral	¥4.06B	-1.96	―	―	-16.23%	-51.84%
4587	46 Neutral	¥185.07B	-49.16	-10.16%	―	-62.47%	-134.06%