CellSeed Inc. (7776) AI Stock Analysis

• Market Cap: ¥15.15B
• Dividend Yield: N/A
• Average Volume (3M): 621.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 34,666,420
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥289.00 ▲(1.76% Upside)

The overall stock score is primarily influenced by significant financial challenges and weak technical indicators. The company's ongoing losses and negative cash flows are major concerns, compounded by bearish market momentum. The lack of profitability and absence of dividends further detract from the stock's appeal.

Positive Factors

Strong Equity Position

A strong equity position with low debt levels provides financial stability and reduces leverage risk, allowing for potential future investments and growth opportunities without excessive reliance on debt financing.

Low Debt Levels

Low debt levels minimize financial risk and interest obligations, providing the company with greater flexibility to navigate financial challenges and invest in long-term growth initiatives without the burden of high interest costs.

Regenerative Medicine Focus

Focusing on regenerative medicine positions CellSeed Inc. in a growing industry with significant long-term potential, as advancements in tissue regeneration technology can lead to new treatment options and revenue streams.

Negative Factors

Negative Cash Flows

Persistent negative cash flows indicate liquidity challenges, potentially limiting the company's ability to fund operations and invest in growth without relying on external financing, which may not be sustainable long-term.

Declining Revenue Growth

Declining revenue growth suggests difficulties in maintaining sales momentum, which could impact the company's ability to achieve profitability and sustain its market position in the competitive biotechnology industry.

Consistent Net Losses

Ongoing net losses reflect operational challenges and cost pressures, which may hinder the company's ability to achieve profitability and invest in future growth, impacting long-term financial health and shareholder value.

CellSeed Inc. Business Overview & Revenue Model

Company Description

CellSeed Inc. (7776) is a biotechnology company based in Japan that specializes in regenerative medicine and cell therapy. The company focuses on developing innovative technologies for the treatment of various diseases, particularly targeting cancer and degenerative conditions. CellSeed's core products include its proprietary cell sheet technology, which allows for the cultivation and transplantation of living tissues, potentially revolutionizing treatment options in the medical field.

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

CellSeed Inc. faces significant financial challenges, particularly in profitability and operational cash flows. The balance sheet remains stable with strong equity, but ongoing net losses and negative cash flows highlight the need for strategic changes to improve financial health and sustainability.

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: 284.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 284 is below the 20-day moving average (MA) of 366.40, below the 50-day MA of 416.32, and below the 200-day MA of 466.36, indicating a bearish trend. The MACD of -39.99 indicates Positive momentum. The RSI at 21.91 is Positive, neither overbought nor oversold. The STOCH value of 5.87 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
7774	58 Neutral	¥19.66B	―	―	―	-5.65%	-469.19%
7096	56 Neutral	¥8.30B	33.05	―	―	2.99%	-52.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4889	51 Neutral	¥24.48B	706.22	―	―	-32.68%	―
4978	49 Neutral	¥14.69B	―	―	―	1.24%	-33.41%
4599	47 Neutral	¥16.96B	-8.77	―	―	―	5.58%
7776	43 Neutral	¥15.15B	-14.61	―	―	-42.49%	-2.37%