STELLA PHARMA CORPORATION (4888) AI Stock Analysis

• Market Cap: ¥10.41B
• Dividend Yield: N/A
• Average Volume (3M): 332.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 268.05%
• EPS Growth: 83.57%
• Country: JP
• Employees: 44
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -4.60
• Shares Outstanding: 34,034,100
• 10 Day Avg. Volume: 566,500
• 30 Day Avg. Volume: 332,290
• PEG Ratio: 1.10
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 13.30
• P/FCF Ratio: 93.66
• 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: ¥424.00
• Price Target Upside: 38.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥305.00 ▼(-0.33% Downside)

The overall stock score is primarily influenced by the company's strong revenue growth and solid equity base, which are positive indicators. However, the persistent operational losses and negative profit margins are significant concerns. The technical analysis indicates a bearish trend, with the stock being oversold. The valuation is weak due to the negative P/E ratio and lack of dividend yield, further impacting the overall score.

STELLA PHARMA CORPORATION Business Overview & Revenue Model

Company Description

Stella Pharma Corporation engages in the research, development, manufacturing, and distribution of pharmaceuticals. The company develops drugs for boron neutron capture therapy (BNCT). Its product includes SPM-011, a boron-containing drug for BNCT used for treating head and neck cancer, recurrent malignant glioma and meningioma, and malignant melanoma and angiosarcoma. The company was incorporated in 2007 and is headquartered in Osaka, Japan.

How the Company Makes Money

STELLA PHARMA CORPORATION generates revenue primarily through the commercialization of its pharmaceutical products, which includes both direct sales to healthcare providers and partnerships with larger pharmaceutical companies for distribution and marketing. The company also engages in research collaborations and licensing agreements that allow it to receive upfront payments, milestone payments, and royalties based on the sales of partnered products. Additionally, government grants and funding for research projects contribute to its earnings. The firm’s strategic partnerships with renowned research institutions and healthcare organizations further enhance its revenue potential by expanding its market reach and accelerating the development of new therapies.

STELLA PHARMA CORPORATION Financial Statement Overview

Summary

STELLA PHARMA CORPORATION has demonstrated strong revenue growth and a solid equity base, which are positive indicators for future potential. However, persistent operational losses and negative profit margins highlight the need for improved profitability. The transition to positive free cash flow is encouraging, suggesting potential for better financial health if revenue growth can be sustained and operational efficiencies are realized.

Income Statement

The company has shown significant revenue growth over the years, with a remarkable increase from ¥100 million in 2022 to ¥961 million in 2025. However, the company is not profitable yet, as it continues to report negative net income and EBIT. Profit margins are negative, which is a concern as it indicates ongoing operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with Stockholders' Equity consistently higher than Total Debt, resulting in a low Debt-to-Equity ratio. The equity ratio is robust, reflecting a stable financial structure. However, the presence of high net losses could affect future equity levels if not addressed.

Cash Flow

The company has improved its cash flow position, transitioning from negative free cash flow in earlier years to positive free cash flow in 2025. Operating cash flow has also turned positive, which is a positive sign for operational efficiency. However, the ratio of operating cash flow to net income is low due to significant net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	992.36M	961.06M	269.49M	229.07M	100.10M	205.97M
Gross Profit	862.49M	811.03M	217.49M	206.94M	84.86M	181.78M
EBITDA	-96.70M	-99.06M	-723.85M	-738.34M	-726.86M	-621.70M
Net Income	-135.85M	-140.81M	-763.75M	-778.82M	-767.72M	-659.24M
Balance Sheet
Total Assets	5.06B	5.42B	3.82B	4.33B	4.72B	2.05B
Cash, Cash Equivalents and Short-Term Investments	2.85B	3.21B	2.35B	2.71B	3.28B	1.25B
Total Debt	727.12M	766.78M	933.30M	1.09B	1.25B	1.41B
Total Liabilities	2.01B	2.21B	1.44B	1.58B	1.64B	1.82B
Stockholders Equity	3.05B	3.21B	2.38B	2.75B	3.08B	230.72M
Cash Flow
Free Cash Flow	0.00	136.50M	-887.82M	-857.00M	-1.13B	-795.25M
Operating Cash Flow	0.00	140.41M	-876.84M	-827.67M	-1.08B	-772.81M
Investing Cash Flow	0.00	287.58M	-9.01M	-29.93M	-350.56M	-22.86M
Financing Cash Flow	0.00	721.25M	228.35M	291.82M	3.83B	-332.40M

STELLA PHARMA CORPORATION Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 306.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4888, the sentiment is Negative. The current price of 306 is below the 20-day moving average (MA) of 362.10, below the 50-day MA of 383.72, and below the 200-day MA of 403.56, indicating a bearish trend. The MACD of -12.95 indicates Positive momentum. The RSI at 29.01 is Positive, neither overbought nor oversold. The STOCH value of 6.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4888.

STELLA PHARMA CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4880	66 Neutral	¥10.39B	284.55	―	0.95%	-13.81%	-107.95%
4588	53 Neutral	¥18.63B	―	―	―	-9.04%	2.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4583	48 Neutral	¥8.98B	―	―	―	30.92%	26.00%
4579	47 Neutral	¥12.77B	―	―	―	40.66%	24.86%
4599	47 Neutral	¥18.33B	―	―	―	―	5.59%
4888	46 Neutral	¥10.41B	―	―	―	268.05%	83.57%