FunPep Company Limited (4881) AI Stock Analysis

• Market Cap: ¥4.66B
• Dividend Yield: N/A
• Average Volume (3M): 245.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• 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: 44,846,700
• 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: 49 Neutral
• Price Target: ¥103.00 ▲(30.38% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held down primarily by weak financial performance (persistent losses and cash burn, plus shrinking equity/assets), with only partial offset from a debt-free balance sheet. Technicals are supportive with price above major moving averages and neutral-to-positive momentum, but valuation remains challenging due to negative earnings and no dividend support.

Positive Factors

Debt-free balance sheet

Zero reported debt reduces solvency and interest-rate risk, giving the company structural financial flexibility. Over a 2–6 month horizon this lowers near-term default risk and preserves optionality for non-dilutive financing, partnerships, or measured R&D spend despite other weaknesses.

Lean workforce

A very small headcount implies low fixed operating overhead and tight cost control, which can meaningfully extend runway while the company seeks funding or partners. For the medium term this supports capital efficiency and faster decision cycles versus larger, higher-burn peers.

Signs of cash efficiency improvement

An improvement in free cash flow in 2024 versus 2023 shows management can tighten operations and extract efficiencies. If sustained, this is a durable indicator that operational levers can reduce burn and lengthen runway even as the company pursues commercialization or partnering over the next several months.

Negative Factors

Persistent cash burn

Consistent negative operating and free cash flow, including a materially negative operating cash flow in 2025 (~-¥1.39B), creates a structural financing need. Over 2–6 months this forces reliance on external capital or partnerships, increasing dilution risk and constraining investment in trials or commercialization.

Severe revenue volatility and collapse

A tiny, highly volatile revenue base and a ~95% YoY revenue collapse in 2025 signal weak product-market traction and unreliable cash inflows. Structurally this undermines the ability to scale, produce sustainable margins, or self-fund development without material external support over the medium term.

Erosion of equity and assets

Declining equity and shrinking assets reduce the company’s financial cushion and creditworthiness. This structural erosion limits capacity to absorb setbacks, secure favorable partner terms or loans, and invest in growth initiatives, raising execution risk over the coming months.

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.

FunPep Company Limited Financial Statement Overview

Summary

Income statement and cash flow quality are very weak: revenue is small and highly volatile with a sharp 2025 contraction, gross profit is negative, and operating/free cash flow are persistently negative with deterioration in 2025. The main offset is a debt-free balance sheet, but equity and assets have declined, indicating an ongoing erosion of 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	5.65M	314.00K	6.13M	530.00K	1.07M	126.87M
Gross Profit	-38.13M	-41.58M	-37.86M	-43.03M	-12.84M	125.12M
EBITDA	-1.36B	-1.61B	-859.23M	-950.54M	-1.16B	-743.67M
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	566.27M	192.61M	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: Positive
• MACD: Negative
• 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 100.95, below the 50-day MA of 94.40, and below the 200-day MA of 100.25, indicating a bullish trend. The MACD of 4.72 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 49.23 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	¥13.02B	41.40	―	―	12.91%	37.96%
177A	67 Neutral	¥6.12B	24.52	―	1.62%	―	―
4571	52 Neutral	¥12.06B	-12.44	-26.70%	―	172.39%	8.27%
2183	52 Neutral	¥6.32B	-2.65	―	5.44%	-15.42%	-879.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4881	49 Neutral	¥4.66B	-1.20	―	―	-16.23%	-51.84%
4587	46 Neutral	¥155.47B	-57.13	-10.16%	―	-62.47%	-134.06%