CellSeed Inc. (7776) AI Stock Analysis

• Market Cap: ¥11.02B
• Dividend Yield: N/A
• Average Volume (3M): 621.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -42.49%
• EPS Growth: -2.37%
• Country: JP
• Employees: 44
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -5.73
• Shares Outstanding: 36,967,117
• 10 Day Avg. Volume: 981,780
• 30 Day Avg. Volume: 621,903
• PEG Ratio: 1.23
• Price to Book (P/B): 6.17
• Price to Sales (P/S): 69.01
• P/FCF Ratio: -15.08
• 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: 52 Neutral
• Price Target: ¥301.00 ▲(16.22% Upside)

The score is held back primarily by weak financial performance (ongoing losses and negative cash flows), partially offset by a relatively stable balance sheet. Technicals add modest support due to positive momentum, but overbought indicators raise near-term risk. Valuation is unfavorable because the negative P/E reflects lack of profitability and no dividend support is provided.

Positive Factors

Strong balance sheet

A high equity ratio and low debt provide durable financial stability, lowering refinancing and leverage risk. This structural strength gives management optionality to fund R&D or clinical programs, absorb operational losses, and pursue partnerships without immediate reliance on volatile markets.

Specialized regenerative platform

A niche cell‑sheet technology creates a sustainable competitive position: proprietary know‑how, clinical specialization, and high technical barriers to entry. This structural differentiation supports long‑term licensing, collaboration and premium service demand in regenerative medicine markets.

Integrated manufacturing & services

Owning both product development and manufacturing capabilities supports quality control, faster scale‑up and recurring service revenue. Integrated operations enable deeper customer relationships and margin improvement over time as production processes standardize and utilization increases.

Negative Factors

Persistent operating losses

Ongoing negative EBIT and net income indicate structural profitability issues. Sustained losses erode retained capital, limit internally generated funding for trials and commercialization, and increase dependency on external capital, constraining long‑term strategic flexibility.

Negative operating and free cash flow

Persistent negative operating and free cash flow mean core operations do not generate sufficient cash. This forces recurring financings to sustain activity, raising execution and dilution risk, and can delay development milestones or commercialization if capital access tightens.

Declining revenue and margins

Falling revenue and compressing gross margins point to weakening commercial traction and cost pressure. Structurally weaker sales and margins undermine the pathway to profitability, reduce reinvestment capacity for R&D, and strain pricing power versus competitors.

CellSeed Inc. Business Overview & Revenue Model

Company Description

CellSeed Inc. develops cell sheet regenerative medicines. It is involved in the research, development, and commercialization of cell-sheet regenerative medicine products, such as epithelial cell sheet for esophageal regeneration, regenerated cartilage sheet, and chondrocyte sheet for the treatment of knee osteoarthritis. The company also offers UpCell, a temperature-responsive cell cultureware for cell-sheet engineering; RepCell, a temperature-responsive cell cutureware for cell collection; and HydroCell, a low cell binding cultureware. In addition, it provides peripheral equipment, including ThermoPlate III, a heating element made by a transparent glass plate; and cellZscope, an automated cell monitoring system, as well as contract development and manufacturing services. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CellSeed Inc. generates revenue through multiple avenues including the commercialization of its cell sheet technology and related products, partnerships with healthcare institutions for research and development, and licensing agreements for its patented technologies. The company collaborates with pharmaceutical firms and research organizations, leveraging its innovative approaches to attract investments and drive product development. Additionally, CellSeed may earn income through regulatory approvals and grants aimed at advancing its therapeutic innovations, further strengthening its financial position.

CellSeed Inc. Financial Statement Overview

Summary

Financials are pressured by persistent negative EBIT and net income, declining gross margin, and negative operating/free cash flow. Offsetting these issues, the balance sheet is comparatively stable with a high equity ratio and low debt.

Income Statement

CellSeed Inc. shows a consistent negative EBIT and net income over the years, indicating ongoing operational challenges. Gross profit margin has declined significantly from 2019 to 2024, reflecting increased cost pressures. Revenue growth has been volatile, with declines in recent years, suggesting struggles in maintaining sales momentum.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio, indicating financial stability. However, the consistent net losses have impacted return on equity negatively. Debt levels remain low, reducing leverage risk, but stagnant equity growth poses challenges for future financing.

Cash Flow

CellSeed Inc.'s cash flow statement highlights negative operating and free cash flows, which are concerning for liquidity and operational sustainability. Despite significant financing activities, the reliance on external funding may not be sustainable long-term. The cash flow to net income ratio indicates challenges in converting earnings to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.28M	190.13M	126.43M	161.67M	199.47M
Gross Profit	110.11M	107.16M	61.02M	84.04M	138.19M
EBITDA	-855.49M	-836.52M	-750.00M	-905.67M	-770.13M
Net Income	-859.84M	-846.53M	-759.68M	-912.87M	-783.86M
Balance Sheet
Total Assets	2.43B	2.47B	1.54B	1.41B	1.81B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.16B	1.07B	846.67M	1.46B
Total Debt	143.75M	151.25M	158.75M	160.00M	160.00M
Total Liabilities	269.88M	301.05M	365.58M	363.58M	280.08M
Stockholders Equity	2.16B	2.16B	1.18B	1.04B	1.53B
Cash Flow
Free Cash Flow	-884.47M	-801.07M	-733.60M	-908.15M	-710.96M
Operating Cash Flow	-866.10M	-779.43M	-718.01M	-817.15M	-700.68M
Investing Cash Flow	-18.37M	56.31M	61.73M	-110.44M	-12.62M
Financing Cash Flow	855.48M	1.81B	881.81M	396.88M	1.10B

CellSeed Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 259.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7776, the sentiment is Negative. The current price of 259 is below the 20-day moving average (MA) of 308.55, below the 50-day MA of 281.46, and below the 200-day MA of 431.43, indicating a neutral trend. The MACD of 4.36 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 16.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7776.

CellSeed 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%
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%
4889	46 Neutral	¥19.28B	533.51	―	―	-32.68%	―
4599	43 Neutral	¥17.61B	-9.21	―	―	―	11.34%