StemCell Institute (7096) AI Stock Analysis

• Market Cap: ¥9.02B
• Dividend Yield: N/A
• Average Volume (3M): 28.64K
• Price to Earnings (P/E): 46.8
• Beta (1Y): 0.42
• Revenue Growth: 2.99%
• EPS Growth: -52.75%
• Country: JP
• Employees: 98
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 6.12
• Shares Outstanding: 10,246,600
• 10 Day Avg. Volume: 23,150
• 30 Day Avg. Volume: 28,640
• PEG Ratio: 1.47
• Price to Book (P/B): 5.29
• Price to Sales (P/S): 5.19
• P/FCF Ratio: -1.37K
• 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): 14.9
• Revenue Forecast (FY): ¥2.88B

• Rating: 56 Neutral
• Price Target: ¥936.00 ▲(18.03% Upside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and profitability. However, the negative free cash flow and bearish technical indicators significantly impact the score. The high P/E ratio further suggests overvaluation, limiting potential upside.

Positive Factors

Margin Sustainability

StemCell Institute reports very strong gross and healthy operating margins, indicating durable pricing power and efficient cost structure. Such margin levels support durable profitability across cycles, enabling reinvestment in R&D and commercialization while insulating earnings from moderate revenue shocks.

Balance Sheet Strength

Low leverage and a solid equity ratio provide financial flexibility to fund clinical programs, capital expenditures, or strategic partnerships without immediate refinancing pressure. This capital structure reduces insolvency risk and supports multi-quarter investment horizons in biotech development.

Cash Generation Quality

Operating cash flow converts profit into cash at a healthy rate, indicating core business operations generate real cash. Sustained OCF conversion supports ongoing R&D spend and working capital needs, improving resilience even if financing conditions tighten over the next several months.

Negative Factors

Negative Free Cash Flow

A persistent decline into negative free cash flow can constrain organic investment and force external financing or equity issuance. For a biotech company, negative FCF limits runway for trials and commercialization, raising structural funding risk unless OCF improves or capital is raised.

EPS Decline

A steep negative EPS growth rate signals deteriorating per-share profitability, which may reflect higher costs, dilution, or one-offs. Over a medium-term horizon this weakens retained earnings accumulation and could necessitate corrective measures that impact strategy and shareholder returns.

Moderate ROE

ROE of mid-teens is respectable but suggests room to improve capital efficiency versus high-performing peers. Sustained moderate ROE may limit long-term shareholder value creation unless management boosts margins, asset turnover, or deploys capital into higher-return projects.

StemCell Institute Business Overview & Revenue Model

Company Description

StemCell Institute Inc. engages in the stem cell banking business in Japan. The company is also involved in research and development of medical treatments using stem cells, as well as engages in banking of blood vessel cells businesses. StemCell Institute Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan. StemCell Institute Inc. is a subsidiary of Trim Medical Holdings Inc.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of its stem cell therapy products and services. This includes charging healthcare providers and patients for stem cell treatments as well as licensing its proprietary technologies to other firms. Additionally, StemCell Institute engages in research partnerships with universities and pharmaceutical companies, which often involve grants and funding for collaborative projects. These partnerships can lead to shared revenue from any resulting products, enhancing the company's financial stability and growth potential. Furthermore, the company may also receive income from patent royalties related to its innovations in stem cell therapies.

StemCell Institute Financial Statement Overview

Summary

StemCell Institute exhibits strong revenue growth and profitability, supported by robust margins and a solid capital structure. However, the negative free cash flow warrants attention, suggesting a need for better capital expenditure management.

Income Statement

StemCell Institute shows strong revenue growth with a 7.97% increase from the previous year. The gross profit margin is robust at 63.16%, and the net profit margin has improved to 14.40%, indicating efficient cost management and profitability. The EBIT and EBITDA margins of 15.62% and 25.94% respectively, reflect solid operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.20, showcasing financial stability. The equity ratio of 35.02% suggests a strong capital structure. However, the return on equity is moderate at 14.68%, indicating potential for improved profitability.

Cash Flow

Operating cash flow to net income ratio is strong at 1.21, indicating good cash generation relative to net income. However, the free cash flow has turned negative, indicating potential challenges in cash management. The decrease in free cash flow from the previous year is a concern, suggesting a need for better capital expenditure management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.70B	2.68B	2.48B	2.09B	1.78B	1.41B
Gross Profit	1.68B	1.69B	1.58B	1.34B	1.11B	924.21M
EBITDA	502.73M	695.19M	534.00M	402.49M	309.47M	119.66M
Net Income	249.97M	385.80M	310.98M	198.03M	133.73M	62.37M
Balance Sheet
Total Assets	7.38B	7.50B	6.54B	5.81B	5.22B	3.96B
Cash, Cash Equivalents and Short-Term Investments	2.71B	3.20B	2.85B	3.32B	3.51B	2.74B
Total Debt	497.26M	518.96M	10.78M	6.89M	0.00	0.00
Total Liabilities	4.72B	4.87B	3.85B	3.51B	3.11B	2.64B
Stockholders Equity	2.66B	2.63B	2.69B	2.30B	2.10B	1.32B
Cash Flow
Free Cash Flow	0.00	-10.11M	132.97M	39.77M	264.81M	-164.34M
Operating Cash Flow	0.00	467.69M	334.63M	99.67M	469.29M	239.00M
Investing Cash Flow	0.00	-259.08M	-811.77M	-285.10M	404.17M	-520.26M
Financing Cash Flow	0.00	146.70M	-1.33M	-869.00K	644.37M	0.00

StemCell Institute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 793.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7096, the sentiment is Positive. The current price of 793 is below the 20-day moving average (MA) of 862.65, below the 50-day MA of 834.30, and below the 200-day MA of 918.65, indicating a neutral trend. The MACD of 15.01 indicates Negative momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 70.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7096.

StemCell Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4978	59 Neutral	¥17.15B	-52.80	―	―	1.24%	-33.41%
4880	57 Neutral	¥7.87B	786.25	―	1.24%	-14.78%	-95.53%
7096	56 Neutral	¥9.02B	46.82	―	―	2.99%	-52.75%
7774	54 Neutral	¥31.19B	-67.59	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7776	49 Neutral	¥13.35B	-10.90	―	―	-42.49%	-2.37%
4599	43 Neutral	¥18.49B	-9.66	―	―	―	11.34%