ReproCELL Inc. (4978) AI Stock Analysis

• Market Cap: ¥15.07B
• Dividend Yield: N/A
• Average Volume (3M): 510.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 1.24%
• EPS Growth: -33.41%
• Country: JP
• Employees: 96
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.93
• Shares Outstanding: 94,802,895
• 10 Day Avg. Volume: 504,660
• 30 Day Avg. Volume: 510,736
• PEG Ratio: -0.33
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 4.58
• P/FCF Ratio: -169.76
• 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: 59 Neutral
• Price Target: ¥187.00 ▲(30.77% Upside)

The score is driven primarily by mixed fundamentals: a very strong, low-debt balance sheet and improving margins/profitability are offset by continued operating losses and negative free cash flow. Technicals add support with price above key moving averages and positive MACD, but overbought momentum indicators increase near-term risk. Valuation is a headwind due to a negative P/E and no stated dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Near-zero debt and steady equity growth give ReproCELL durable financial flexibility to fund R&D, absorb cyclical demand swings, and pursue partnerships or M&A without solvency pressure. Low leverage materially reduces long-term refinancing and covenant risk.

Improved margins and revenue rebound

Higher gross margin and a revenue inflection suggest improving product mix or pricing power in consumables and services. Durable margin expansion supports operating leverage potential and makes sustained profitability more achievable as sales scale.

Net income turned positive

Net income turning positive marks a structural inflection from multi-year losses to profitability. Combined with rising equity, this creates a stronger capital base to reinvest in product development and customer expansion without immediate dilution.

Negative Factors

Weak cash generation / negative free cash flow

Earnings are not converting reliably into cash: small operating cash flow and negative free cash flow limit the firm's ability to self-fund growth, pay down obligations, or build cash cushions, increasing reliance on external financing for durable investments.

Operating profit still negative

Persistent EBIT losses show that SG&A and operating costs still outpace gross profit despite margin gains. This structural gap needs sustained revenue scale or cost adjustment to secure lasting operating profitability and cash flow stability.

Low returns on shareholder capital

ROE near zero reflects limited efficiency in generating shareholder returns from equity capital. Unless profitability and cash conversion improve materially, the company may struggle to justify reinvestment or attract long-term capital at competitive terms.

ReproCELL Inc. Business Overview & Revenue Model

Company Description

ReproCELL Incorporated operates as a stem cell research company in Japan. It offers stem cell reagents, including RNA reprogramming, small molecules, growth factors and cytokines, antibodies and staining kits, pluripotent stem cell culture media, cell substrates, cryopreservation media, dissociation solution, and transfection reagents; differentiated induced pluripotent stem cell (iPSC) and related reagents, feeder cells, and induced neurons; and 3D cell culture; and labware. The company also provides preclinical genomics, stem cell research, drug efficacy, safety, & ADME, human tissue samples, therapeutic pipeline, clinical laboratory services, clinical diagnostic services, and gmp ipsc master cell bank services. ReproCELL Incorporated was incorporated in 2003 and is based in Yokohama, Japan.

How the Company Makes Money

ReproCELL Inc. generates revenue primarily through the sale of its proprietary stem cell products, reagents, and technologies that support drug discovery and regenerative medicine research. The company earns income by providing contract research services to pharmaceutical companies and academic institutions, enabling them to utilize ReproCELL's specialized technologies and expertise. Additionally, the company may form strategic partnerships or collaborations with other biotechnology companies to co-develop products or leverage mutual strengths, contributing to its revenue streams.

ReproCELL Inc. Financial Statement Overview

Summary

Financial profile is mixed: profitability improved with net income turning positive and gross margin rising to ~55%, and the balance sheet is very strong with effectively zero debt. However, operating profit remains negative and cash conversion is weak, with free cash flow still meaningfully negative in 2025.

Income Statement

Revenue growth has been uneven but improved in the most recent year (+9.6% in 2025 after a decline in 2024). Profitability has clearly inflected upward: net income turned positive in 2025 (from losses in 2021–2024) and gross margin expanded to ~55% (vs. ~46% in 2024). Offsetting this, operating profit remains negative (EBIT loss in 2025), indicating the core cost structure is still not consistently covered by gross profit despite the margin improvement.

Balance Sheet

The balance sheet is a key strength: total debt is effectively zero in 2025 (and debt-to-equity is 0.0), providing high financial flexibility and low solvency risk. Equity has grown steadily (2021–2025), supporting a rising asset base. The main weakness is low returns on shareholders’ capital—return on equity is only ~1.1% in 2025 and was negative in prior years—reflecting that profitability is still in an early-stage recovery.

Cash Flow

Cash generation remains the primary concern. Operating cash flow is only slightly positive in 2025 (about ¥6M) after multiple years of negative operating cash flow, and free cash flow is still meaningfully negative in 2025 (about -¥80M). Cash flow quality versus earnings is weak: operating cash flow is very small relative to net income in 2025, suggesting earnings are not yet translating into cash on a consistent basis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83B	2.98B	2.43B	2.95B	2.23B	1.29B
Gross Profit	1.51B	1.65B	1.12B	1.14B	803.44M	482.70M
EBITDA	-237.72M	95.76M	8.24M	-254.59M	-513.85M	-726.20M
Net Income	-126.03M	103.25M	-31.41M	-305.31M	-575.09M	-812.57M
Balance Sheet
Total Assets	9.25B	9.67B	9.05B	8.36B	8.10B	6.05B
Cash, Cash Equivalents and Short-Term Investments	4.72B	3.94B	6.57B	6.38B	4.64B	4.60B
Total Debt	0.00	0.00	0.00	0.00	80.00M	80.00M
Total Liabilities	591.24M	685.81M	741.03M	780.63M	844.53M	656.43M
Stockholders Equity	8.66B	8.98B	8.31B	7.58B	7.25B	5.38B
Cash Flow
Free Cash Flow	0.00	-80.40M	-203.88M	-301.57M	-294.27M	-713.15M
Operating Cash Flow	0.00	6.29M	-11.45M	-140.53M	-246.24M	-648.88M
Investing Cash Flow	0.00	-796.00M	404.42M	-1.09B	-2.14B	-1.42B
Financing Cash Flow	0.00	680.11M	544.05M	482.87M	2.38B	4.41M

ReproCELL Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4978, the sentiment is Negative. The current price of 143 is below the 20-day moving average (MA) of 162.75, below the 50-day MA of 154.58, and below the 200-day MA of 174.44, indicating a neutral trend. The MACD of 1.85 indicates Positive momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4978.

ReproCELL Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4978	59 Neutral	¥15.07B	-54.05	―	―	1.24%	-33.41%
4880	57 Neutral	¥7.97B	754.65	―	1.24%	-14.78%	-95.53%
7774	57 Neutral	¥21.85B	-47.35	―	―	-5.65%	-469.19%
7096	56 Neutral	¥8.54B	42.69	―	―	2.99%	-52.75%
7776	52 Neutral	¥11.02B	-10.03	―	―	-42.49%	-2.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4599	43 Neutral	¥17.61B	-9.21	―	―	―	11.34%