K Pharma,Inc. (4896) AI Stock Analysis

• Market Cap: ¥8.01B
• Dividend Yield: N/A
• Average Volume (3M): 48.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 17
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -20.44
• Shares Outstanding: 11,609,600
• 10 Day Avg. Volume: 47,520
• 30 Day Avg. Volume: 48,080
• PEG Ratio: 0.02
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.22
• 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: ¥711.00 ▲(9.22% Upside)

The score is held back primarily by weak and highly unstable financial performance, including a 2024 revenue collapse and significant losses/cash burn. Technical indicators are moderately supportive in the near term but do not offset the longer-term trend weakness. Valuation is difficult to assess due to negative earnings and no dividend data.

Positive Factors

Strong balance sheet (no debt)

Zero financial leverage and sizable shareholders' equity provide a structural solvency buffer. Over a 2–6 month horizon this reduces near-term default risk and gives management flexibility to fund operations or pursue non-dilutive strategic options while addressing operational volatility.

Proven ability to generate revenue and profit

The company demonstrated it can commercialize or monetize assets, achieving meaningful revenue and margin in 2023. This indicates underlying product or business-model capability that could be re-leveraged if execution improves, rather than being purely pre-revenue or developmental.

Lean cost structure / small headcount

A very small employee base implies a low fixed-cost operating model, which can extend runway and enable flexible outsourcing of R&D or manufacturing. Structurally, this reduces ongoing cash burn and supports scalability once revenue or financing recovers.

Negative Factors

2024 revenue collapse and large net loss

A structural collapse from revenue-generating in 2023 to zero in 2024 creates pronounced uncertainty about repeatable revenue streams. Over months this undermines forecasting, weakens pricing or commercial channels, and raises execution risk for sustaining operations or regaining customers.

Severe cash burn and negative cash generation

Large negative operating and free cash flows are a durable concern: they create immediate financing needs and reduce strategic optionality. Even with no debt, sustained burn forces dilutive or costly financing, limiting the company's ability to invest in commercialization or R&D over the medium term.

Eroding equity and negative returns on capital

Negative ROE and declining book equity indicate capital is being consumed rather than earning returns. Structurally this weakens the balance-sheet buffer over time, increases vulnerability to future shocks, and reduces shareholders' recovery prospects if losses persist across quarters.

K Pharma,Inc. Business Overview & Revenue Model

Company Description

K Pharma,Inc. engages in the research, development, manufacture, and sale of regenerative medicines and pharmaceutical products in Japan. It develops regenerative medicine products using disease-specific induced pluripotent stem (iPS) cell technology for spinal cord injuries and cerebral infarctions. The company was incorporated in 2016 and is based in Minato, Japan.

How the Company Makes Money

K Pharma,Inc. Financial Statement Overview

Summary

Financial performance is weak due to extreme volatility: profitable 2023 was followed by 2024 revenue falling to 0, a large net loss (~846M), and heavy cash burn (operating cash flow ~-984M; free cash flow ~-998M). The balance sheet helps (no debt, positive equity), but equity declined and losses are pressuring returns.

Income Statement

Results are highly volatile. The company generated strong profitability in 2023 (revenue of 1.0B with a ~26% net margin and positive EBIT), but reverted to a heavy loss in 2024 (revenue fell to 0 and net loss widened to ~846M). Prior years (2021–2022) were also loss-making with no revenue, underscoring an inconsistent earnings base and limited visibility on repeatable revenue generation.

Balance Sheet

The balance sheet is a relative strength given zero debt across periods and positive equity (2024 equity ~2.26B vs. assets ~2.35B), implying low financial leverage and reduced solvency risk. However, profitability pressure is eroding returns on equity (2024 return on equity ~-37%), and equity declined from 2023 to 2024, which raises the risk of further book-value deterioration if losses persist.

Cash Flow

Cash generation is weak and unstable. 2023 showed positive operating cash flow (~454M) and free cash flow (~445M), but 2024 swung sharply negative (operating cash flow ~-984M; free cash flow ~-998M). The scale of the 2024 cash burn versus the prior year suggests elevated funding/liquidity needs if similar outflows continue, even though cash flow tracked net income directionally (loss years generally showed negative cash flow).

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	1.00B	0.00	0.00
Gross Profit	0.00	910.00M	0.00	-6.80M
EBITDA	-844.10M	366.06M	-390.53M	-222.31M
Net Income	-846.46M	260.33M	-392.43M	-228.72M
Balance Sheet
Total Assets	2.35B	3.31B	1.37B	205.77M
Cash, Cash Equivalents and Short-Term Investments	2.27B	3.27B	1.34B	188.78M
Total Debt	0.00	0.00	0.00	0.00
Total Liabilities	94.76M	209.13M	38.30M	26.88M
Stockholders Equity	2.26B	3.10B	1.34B	178.89M
Cash Flow
Free Cash Flow	-998.21M	444.62M	-393.44M	-196.32M
Operating Cash Flow	-983.72M	454.43M	-363.48M	-196.32M
Investing Cash Flow	-14.49M	-11.10M	-32.74M	-250.00K
Financing Cash Flow	0.00	1.49B	1.54B	368.20M

K Pharma,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4570	72 Outperform	¥14.31B	44.82	―	―	12.91%	37.96%
4594	53 Neutral	¥8.40B	-5.54	―	―	1221.43%	30.54%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4588	50 Neutral	¥50.87B	-21.14	―	―	-9.04%	13.09%
4896	46 Neutral	¥8.01B	-8.86	―	―	―	―
4591	43 Neutral	¥4.56B	-3.54	―	―	-100.00%	7.60%
4884	42 Neutral	¥2.86B	-2.92	―	―	-9.77%	-13.86%