StemCell Institute (7096) AI Stock Analysis

• Market Cap: ¥8.58B
• Dividend Yield: N/A
• Average Volume (3M): 28.64K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.43
• 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: ¥892.00 ▲(12.48% 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

Revenue and margin strength

Consistent revenue growth near 8% combined with high gross and healthy net/EBITDA margins indicates durable operating leverage and pricing power. Over the next several months this supports continued internal funding for R&D and commercialization while cushioning against cyclical pressures.

Low financial leverage

A conservative balance sheet with low debt gives the company flexibility to fund trials, strategic initiatives, or M&A without urgent refinancing. That structural strength reduces default risk and preserves optionality across 2–6 months of execution risk or market stress.

Strong cash generation vs. earnings

Operating cash generation exceeding net income shows core business converts earnings into cash reliably. This durable conversion supports working capital, ongoing programs and near-term reinvestment even if free cash flow fluctuates seasonally or with capex timing.

Negative Factors

Negative free cash flow

A shift to negative free cash flow signals higher capex or cash outlays that may not be covered by operating cash alone. If sustained, this can force external financing, constrain discretionary spending on trials or commercialization, and raise dilution or leverage risk over months.

Sharp EPS decline

A more than 50% drop in EPS indicates earnings volatility or one-offs that materially reduced profitability. Persistent EPS declines weaken retained earnings, limit internal funding capacity and undermine investor confidence in consistent earnings power across the medium term.

Moderate return on equity

ROE in the mid-teens is modest for a growth-focused biotech; it suggests capital is not being converted to shareholder returns as efficiently as possible. Over 2–6 months this may highlight limits on scalability or indicate the need for better capital allocation to lift returns.

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: Positive
• RSI: Neutral
• STOCH: Positive

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 865.75, below the 50-day MA of 842.00, and below the 200-day MA of 912.05, indicating a neutral trend. The MACD of 7.21 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 13.75 is Positive, 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
7096	56 Neutral	¥8.58B	33.49	―	―	2.99%	-52.75%
4978	56 Neutral	¥16.87B	120.78	―	―	1.24%	-33.41%
7774	54 Neutral	¥26.11B	-34.16	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4593	50 Neutral	¥55.76B	-13.30	―	―	-82.33%	47.73%
7776	49 Neutral	¥12.62B	-8.14	―	―	-42.49%	-2.37%
4599	43 Neutral	¥18.18B	-8.15	―	―	―	11.34%