Renascience Inc. (4889) AI Stock Analysis

• Market Cap: ¥20.27B
• Dividend Yield: N/A
• Average Volume (3M): 312.67K
• Price to Earnings (P/E): 561.0
• Beta (1Y): 0.64
• Revenue Growth: -32.68%
• EPS Growth: N/A
• Country: JP
• Employees: 4
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -6.68
• Shares Outstanding: 13,250,100
• 10 Day Avg. Volume: 205,420
• 30 Day Avg. Volume: 312,670
• PEG Ratio: -0.82
• Price to Book (P/B): 7.74
• Price to Sales (P/S): 100.40
• P/FCF Ratio: -75.20
• 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: 46 Neutral
• Price Target: ¥1,442.00 ▲(0.42% Upside)

The score is held back primarily by persistent cash burn despite newly positive net income, plus a clearly bearish technical setup (below key moving averages with negative MACD). A strong, debt-free balance sheet is a meaningful offset, but valuation is unfavorable due to the extremely high P/E and no dividend yield data.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Strong Gross Margin

A strong gross margin indicates effective cost management and pricing power, which can support profitability as the company scales.

Positive Net Income

Turning net income positive is a crucial step towards sustainable profitability, reflecting improved operational efficiency and financial health.

Negative Factors

Negative Cash Flow

Consistently negative cash flow indicates ongoing cash burn, which can strain resources and limit the company's ability to fund operations and growth internally.

Declining Revenue

A decline in revenue suggests challenges in market demand or competitive positioning, which could hinder long-term growth prospects if not addressed.

Negative EBIT

Negative EBIT indicates that the core operations are not yet profitable, which could impact the company's ability to sustain profitability without further improvements.

Renascience Inc. Business Overview & Revenue Model

Company Description

Renascience Inc. engages in the development and commercialization of pharmaceuticals and medical devices in Japan. The company is developing RS5614, a PAI-1 inhibitor product candidate for use in the treatment of chronic myeloid leukemia, malignant melanoma, non-small cell lung cancer, novel coronavirus infections, and FGF23-related hypophosphatemic rickets that is in Phase 3 clinical trials; RS5441, a PAI-1 inhibitor for use in dermatological diseases that is in Phase I clinical trials; and RS8001, a water-soluble vitamin for use in the treatment of premenstrual syndrome/premenstrual dysphoric mood disorder, autism spectrum disorder, and menopausal disorder, which is in Phase 2 clinical trials. It is also developing RS9001, a disposable ultrafine endoscope; artificial intelligence based medical solutions; and diagnostic solutions. The company was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Renascience Inc. generates revenue primarily through the sale of its proprietary regenerative medicine products and technologies. The company's key revenue streams include direct sales to healthcare providers, licensing agreements with pharmaceutical companies, and strategic partnerships with research institutions. Additionally, Renascience Inc. may receive funding from government grants and private investors to support its research and development activities. The company leverages its advanced scientific capabilities and expertise to maintain a competitive edge in the biotechnology sector, driving sustainable growth and profitability.

Renascience Inc. Financial Statement Overview

Summary

Renascience Inc. demonstrates financial stability through a strong equity base and low leverage, mitigating risk. However, the company faces challenges in achieving profitability and generating positive cash flows, raising concerns about its operational efficiency and long-term sustainability. Strategic improvements in revenue growth and cost management are essential for enhancing financial performance.

Income Statement

Renascience Inc. shows a significant negative EBIT and EBITDA, indicating high operational losses over the recent periods. Despite a net income improvement in the TTM period, the company's revenue growth has been inconsistent, with fluctuations over the past few years. The gross profit margin remains strong, suggesting effective cost management in production but failing to translate into overall profitability.

Balance Sheet

The company maintains a robust equity position with a high equity ratio, indicating financial stability and low leverage, as evidenced by zero total debt in the TTM period. This suggests a conservative financial structure, minimizing risk exposure. However, the return on equity is poor due to consistent net losses, which impacts investor returns negatively.

Cash Flow

Renascience Inc. exhibits weak cash flow performance, with negative operating and free cash flows in multiple periods, reflecting challenges in generating cash from operations. The lack of recent capital expenditures may suggest underinvestment, potentially affecting future growth. The cash flow to net income ratios are not assessable due to zero or negative values, highlighting liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.69M	132.69M	194.16M	100.55M	139.33M	209.80M
Gross Profit	98.37M	128.95M	165.64M	100.30M	77.60M	179.82M
EBITDA	94.34M	143.82M	-250.50M	-332.49M	-244.65M	-89.39M
Net Income	62.45M	113.43M	-258.33M	-335.80M	-254.29M	-100.05M
Balance Sheet
Total Assets	1.73B	1.87B	2.09B	2.27B	2.44B	1.07B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.80B	2.03B	2.21B	2.39B	1.03B
Total Debt	0.00	0.00	356.10M	309.60M	199.23M	475.65M
Total Liabilities	79.72M	151.21M	482.11M	409.76M	237.17M	505.10M
Stockholders Equity	1.65B	1.72B	1.61B	1.87B	2.20B	561.53M
Cash Flow
Free Cash Flow	0.00	-177.14M	-232.10M	-286.87M	-231.66M	-90.27M
Operating Cash Flow	0.00	-176.34M	-230.52M	-284.64M	-230.49M	-89.25M
Investing Cash Flow	0.00	382.15M	-1.57M	232.00K	-296.00K	-1.72M
Financing Cash Flow	0.00	-52.18M	46.50M	110.37M	1.59B	135.65M

Renascience Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1436.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4889, the sentiment is Negative. The current price of 1436 is below the 20-day moving average (MA) of 1553.55, below the 50-day MA of 1751.90, and below the 200-day MA of 1857.61, indicating a bearish trend. The MACD of -86.11 indicates Negative momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4889.

Renascience Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7096	56 Neutral	¥8.54B	42.69	―	―	2.99%	-52.75%
7774	54 Neutral	¥22.01B	-54.84	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4978	49 Neutral	¥14.12B	-50.65	―	―	1.24%	-33.41%
7776	47 Neutral	¥10.06B	-9.53	―	―	-42.49%	-2.37%
4889	46 Neutral	¥20.27B	561.01	―	―	-32.68%	―
4599	43 Neutral	¥17.49B	-9.14	―	―	―	11.34%