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STELLA PHARMA CORPORATION (JP:4888)
:4888
Japanese Market
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STELLA PHARMA CORPORATION (4888) AI Stock Analysis

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JP:4888

STELLA PHARMA CORPORATION

(4888)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
¥300.00
▲(47.78% Upside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by weak financial performance (persistent losses, sharp revenue volatility, and renewed negative free cash flow in 2026). Technicals are bearish despite oversold readings, and valuation is constrained by unprofitability and the absence of a dividend.
Positive Factors
High gross margins
Consistently very high gross margins (77%–90%) indicate strong product-level economics and pricing power. Over months this supports leverage of selling, general and R&D spend into scalable profit recovery when revenue stabilizes, improving long-term cash conversion potential.
Negative Factors
Persistent unprofitability
Consistent negative ROE and extremely deep net losses (net margin ~-241% in 2026) show the company fails to cover operating costs. Structurally unprofitable operations increase burn, limit reinvestment capacity, and require sustained revenue improvement or major cost restructuring to reach durability.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Consistently very high gross margins (77%–90%) indicate strong product-level economics and pricing power. Over months this supports leverage of selling, general and R&D spend into scalable profit recovery when revenue stabilizes, improving long-term cash conversion potential.
Read all positive factors

STELLA PHARMA CORPORATION (4888) vs. iShares MSCI Japan ETF (EWJ)

STELLA PHARMA CORPORATION Business Overview & Revenue Model

Company Description
Stella Pharma Corporation is a pharmaceutical company that handles the complete process of drug development, from research and manufacturing to distribution. A core area of its specialization is in therapeutic agents for boron neutron capture ther...
How the Company Makes Money
Detailed, company-specific information on STELLA PHARMA CORPORATION (4888)’s revenue model (e.g., product portfolio mix, major therapeutic areas, licensing/royalty income, manufacturing/contract services, geographic revenue split, or significant p...

STELLA PHARMA CORPORATION Financial Statement Overview

Summary
High gross margins are outweighed by persistent losses, a sharp 2026 revenue contraction (~67% YoY), and uneven cash generation (FCF positive in 2025 but negative again in 2026). Balance-sheet leverage is manageable in recent years, but negative ROE and recurring cash burn remain key risks.
Income Statement
22
Negative
Balance Sheet
56
Neutral
Cash Flow
35
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue991.86M323.39M961.06M269.49M229.07M100.10M
Gross Profit871.90M250.56M828.72M203.69M192.36M50.73M
EBITDA-96.70M-742.15M-99.06M-723.85M-738.35M-726.86M
Net Income-135.73M-780.92M-140.81M-763.75M-778.82M-767.72M
Balance Sheet
Total Assets5.06B4.49B5.42B3.82B4.33B4.72B
Cash, Cash Equivalents and Short-Term Investments2.85B2.82B3.21B2.35B2.71B3.28B
Total Debt727.12M747.14M766.78M933.30M1.09B1.25B
Total Liabilities2.01B2.06B2.21B1.44B1.58B1.64B
Stockholders Equity3.05B2.43B3.21B2.38B2.75B3.08B
Cash Flow
Free Cash Flow0.00-345.32M136.50M-887.82M-853.07M-1.13B
Operating Cash Flow0.00-334.51M140.41M-876.84M-827.67M-1.08B
Investing Cash Flow0.00-15.67M287.58M-9.01M-29.93M-350.56M
Financing Cash Flow0.00-33.28M725.78M228.25M291.69M3.46B

STELLA PHARMA CORPORATION Technical Analysis

Technical Analysis Sentiment
Negative
Last Price203.00
Price Trends
50DMA
401.12
Negative
100DMA
476.45
Negative
200DMA
384.85
Negative
Market Momentum
MACD
-26.43
Negative
RSI
40.86
Neutral
STOCH
20.29
Neutral
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 203 is below the 20-day moving average (MA) of 324.30, below the 50-day MA of 401.12, and below the 200-day MA of 384.85, indicating a bearish trend. The MACD of -26.43 indicates Negative momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
¥24.93B-33.43-11.11%-187.80%
49
Neutral
¥19.62B-10.346.10%
45
Neutral
¥8.49B-7.82-26.70%60.80%-8.89%
43
Neutral
¥33.75B-10.55-87.41%43.60%
42
Neutral
¥11.24B-13.25-66.35%-410.00%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4888
STELLA PHARMA CORPORATION
312.00
-73.00
-18.96%
JP:4571
NanoCarrier Co., Ltd.
102.00
-31.00
-23.31%
JP:4593
Healios KK
250.00
-177.00
-41.45%
JP:4599
StemRIM Inc.
313.00
11.00
3.64%
JP:7774
Japan Tissue Engineering Co., Ltd.
614.00
44.00
7.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026