StemCell Institute (7096) AI Stock Analysis

• Market Cap: ¥8.43B
• Dividend Yield: N/A
• Average Volume (3M): 28.64K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.45
• 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: ¥865.00 ▲(9.08% 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

High gross (63.16%) and improved net margins (14.40%) point to durable pricing power and efficient cost control. Strong EBIT (15.62%) and EBITDA (25.94%) margins indicate operational leverage that can fund R&D and commercialization over months, supporting sustainable profitability.

Balance Sheet Strength

Low leverage (D/E 0.20) and a solid equity ratio (35.02%) provide financial flexibility for a capital-intensive biotech. This reduces refinancing risk, supports multi-quarter R&D programs and strategic investments, and preserves resilience to industry cyclicality over the medium term.

Operating Cash Conversion

An operating cash flow to net income ratio above 1 (1.21) shows earnings convert well into cash, reflecting quality of core operations. Reliable operating cash helps fund working capital and ongoing development needs, supporting operational continuity across quarters.

Negative Factors

Negative Free Cash Flow

Free cash flow turning negative means capital expenditures or other uses exceed cash generation. For a biotech requiring ongoing R&D and commercialization spend, sustained negative FCF can necessitate external funding, constrain strategic optionality, or dilute shareholders over the medium term.

Earnings Volatility

A ~51% decline in EPS signals meaningful earnings volatility or one-off pressures that impair profit consistency. Such swings reduce predictability of internal funding for development programs and complicate multi-quarter planning, increasing reliance on external financing in a capital-heavy industry.

Moderate Return on Equity

ROE of 14.68% is moderate for a growth-stage biotech and suggests capital is not being converted into above-market shareholder returns. Over the medium term this may indicate limited capital efficiency versus peers and a need to improve margins or investment allocation to boost long-term 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

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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	7.52B	6.59B	5.83B	5.23B	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	5.89M	0.00	0.00
Total Liabilities	4.72B	4.89B	3.90B	3.53B	3.13B	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: Negative
• Last Price: 793.00
• 50DMA: Negative
• 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 Negative. The current price of 793 is below the 20-day moving average (MA) of 856.40, below the 50-day MA of 849.70, and below the 200-day MA of 897.47, indicating a bearish trend. The MACD of -6.44 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 8.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥8.43B	33.49	―	―	2.99%	-52.75%
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%