Renascience Inc. (4889) AI Stock Analysis

• Market Cap: ¥23.49B
• Dividend Yield: N/A
• Average Volume (3M): 312.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -32.68%
• EPS Growth: N/A
• Country: JP
• Employees: 4
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -5.21
• Shares Outstanding: 13,513,500
• 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: 58 Neutral
• Price Target: ¥2,060.00 ▲(43.45% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held back primarily by persistent cash burn and still-negative EBIT despite improved FY2025 net income, while a debt-free, stronger balance sheet and positive technical momentum provide meaningful support. Valuation is a drag due to the negative P/E and lack of dividend yield data.

Positive Factors

Balance sheet strength (debt-free)

Elimination of debt and sizable equity provide durable financial flexibility: lowers fixed financing costs, extends runway for R&D or commercialization, and reduces refinancing risk. This materially improves the company's ability to fund strategic initiatives over the next several quarters.

Very high gross margins

Sustained ~97% gross margin indicates advantaged product economics or low variable costs, supporting high incremental profitability as sales scale. Margins like this offer structural leverage to improve operating margins once fixed costs are absorbed.

Profit inflection and improving ROE

A return to net profitability and a positive ROE signal an operational inflection or one-time improvements translating into shareholder returns. If sustained, this supports reinvestment and credibility with stakeholders over the medium term.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow means the company is not yet self-funding and will likely rely on external financing to sustain operations or growth. This constrains reinvestment, increases dilution or refinancing risk, and pressures long-term financial durability.

Operating losses (negative EBIT)

Negative EBIT indicates core operations still lose money; net income improvement may reflect non-operating items. Until EBIT turns sustainably positive, the business model's operational profitability remains unproven and vulnerable to revenue volatility.

Revenue decline and limited scale

Declining top-line and limited workforce suggest constrained commercial scale and slower market adoption. Structural revenue weakness reduces ability to spread fixed costs and fund growth investments, making margin and cash-flow improvements harder to sustain.

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

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Renascience Inc. Financial Statement Overview

Summary

Mixed fundamentals: FY2025 net income turned positive (¥113M) and gross margin remains very strong (~97%), while the balance sheet improved materially with debt reduced to zero. Offsetting these positives, revenue declined (-4.6% YoY), EBIT remains negative, and cash generation is a key weakness with FY2025 operating cash flow (-¥176M) and free cash flow (-¥177M) still negative.

Income Statement

Profitability improved sharply in FY2025, with net income turning positive (¥113M) after multiple years of losses, and gross margin remaining very strong (~97%). However, revenue fell (-4.6% YoY) and the business still shows weak operating-level performance (EBIT remains negative), suggesting earnings are not yet supported by a consistently profitable core operation.

Balance Sheet

The balance sheet is a clear strength: debt is reduced to zero in FY2025 (from ~¥356M in FY2024), and equity is sizable (~¥1.72B) relative to assets (~¥1.87B). Return on equity improved to a positive ~6.6% in FY2025, but the company’s history of negative ROE in prior years highlights that profitability durability is still developing.

Cash Flow

Cash generation remains a key concern: operating cash flow and free cash flow are consistently negative across all years shown, including FY2025 (operating cash flow -¥176M; free cash flow -¥177M). While cash burn improved versus FY2024, the company is not yet self-funding, and cash outflows contrast with the newly positive net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1924.10, below the 50-day MA of 1712.46, and below the 200-day MA of 1985.61, indicating a neutral trend. The MACD of 60.27 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 18.87 is Positive, 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
4889	58 Neutral	¥23.49B	-67.88	―	―	-32.68%	―
4978	56 Neutral	¥16.02B	120.78	―	―	1.24%	-33.41%
7774	54 Neutral	¥24.81B	-34.16	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4593	50 Neutral	¥53.60B	-13.30	―	―	-82.33%	47.73%
7776	49 Neutral	¥12.00B	-8.14	―	―	-42.49%	-2.37%
4599	43 Neutral	¥18.55B	-11.30	―	―	―	11.34%