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Heartseed, Inc. (219A) AI Stock Analysis

JP:219A

Heartseed, Inc.

(TSE/TYO:219A)

Select Model
Rating:75.8Outperform
Price Target:JPY 3,404.00â–²(13.09% Upside)
Action:reiterated
Date:09/19/26

The overall score of 76 is primarily driven by the company's outstanding financial performance, marked by explosive revenue growth, a robust cash position, and a debt-free balance sheet. Strong technical momentum further supports the positive outlook, though the stock is nearing overbought levels. The primary detractor is the negative P/E ratio, which reflects a lack of trailing earnings per share and significantly weighs on the valuation component.

Positive Factors
FY2025 revenue and profit turnaroundThe FY2025 revenue surge and return to profitability indicate a meaningful improvement in operating performance. If maintained, stronger earnings can support reinvestment, improve financial resilience, and establish a more durable earnings base after the prior loss period.
Negative Factors
History of substantial lossesThe recent profit improvement follows several years of large losses, so the durability of the new earnings profile is not yet established. A return to weaker performance could reduce retained capital, undermine confidence in execution, and reverse the progress achieved in FY2025.

Heartseed, Inc. (219A) vs. iShares MSCI Japan ETF (EWJ)

-40%-20%0%20%40%60%JP:219A+55.81%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 69.04B
Dividend Yield
―
Average Volume (3M)
470.00K
Price to Earnings (P/E)
-102.8
Beta (1Y)
0.71
Revenue Growth
―
EPS Growth
―
Country
Japan
Employees
43
Sector
General
Sector Strength
55
Industry
Biotechnology

Heartseed, Inc. Business Overview & Revenue Model

Company Description

Heartseed Inc. is a Japan-based company engaged in research and development of regenerative medicine products. The company has established cardiac regenerative medicine, a therapy in which microtissue derived from iPS cells is transplanted into the h...

Heartseed, Inc. Financial Statement Overview

Summary

Exceptional financial health driven by a 246% revenue surge to ¥3.03B, a successful swing to profitability with a 19.6% net margin, and robust cash flow generation (¥1.08B operating cash flow). The balance sheet is pristine with near-zero debt and a strong ¥7.57B equity base, providing significant financial flexibility.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

90Very Positive
Financial statement breakdown
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022
Income Statement
Total Revenue3.03B3.03B873.61M344.73M499.06M
Gross Profit3.03B3.03B000
EBITDA778.63M278.71M-996.98M-1.45B-1.46B
Net Income592.50M163.38M-812.73M-1.47B-1.41B
Balance Sheet
Total Assets8.14B8.14B7.07B5.72B4.94B
Cash, Cash Equivalents and Short-Term Investments7.34B7.34B5.30B4.59B3.99B
Total Debt890.00K890.00K5.39M11.58M30.98M
Total Liabilities571.35M571.35M444.34M450.19M208.45M
Stockholders Equity7.57B7.57B6.62B5.27B4.73B
Cash Flow
Free Cash Flow1.05B1.05B-1.36B-1.13B-1.92B
Operating Cash Flow1.08B1.08B-1.34B-797.93M-1.92B
Investing Cash Flow72.64M72.64M-67.13M-425.69M-994.00K
Financing Cash Flow375.76M375.76M2.12B1.85B-22.16M

Heartseed, Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price3010.00

Price Trends

50DMA2531.98Positive
100DMA2097.85Positive
200DMA1971.70Positive

Market Momentum

MACD129.58Negative
RSI65.70Neutral
STOCH80.10Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:219A, the sentiment is Positive. The current price of 3010.00 is above the 20-day moving average (MA) of 2738.25, above the 50-day MA of 2531.98, and above the 200-day MA of 1971.70, indicating a bullish trend. The MACD of 129.58 indicates Negative momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 80.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:219A.

Heartseed, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:219A against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:219AJP:219A76OutperformJPY 69.13B-102.83――――
JP:4931JP:493171OutperformJPY 42.81B12.86―2.85%3.38%32.41%
JP:3349JP:334960NeutralJPY 480.15B14.88―1.36%8.99%3.61%
JP:4350JP:435057NeutralJPY 16.87B18.82―2.15%8.19%-25.81%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:190AJP:190A43NeutralJPY 3.79B-2.48―――24.21%
JP:2796JP:279643NeutralJPY 5.89B59.01―2.79%7.64%―

* General Sector Average

Performance Comparison

-50%0%50%JP:219AJP:2796JP:3349JP:4350JP:4931JP:190ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:219A and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:219AHeartseed, Inc.3015.001272.0072.98%
JP:2796Pharmarise Holdings Corp.501.00-9.26-1.82%
JP:3349COSMOS Pharmaceutical Corporation6032.00-863.40-12.52%
JP:4350Medical System Network Co., Ltd.559.0072.1314.82%
JP:4931Shinnihonseiyaku Co., Ltd.2000.00-98.78-4.71%
JP:190AChordia Therapeutics Inc.49.00-62.00-55.86%

Heartseed, Inc. Corporate Events

Heartseed Advances HS-005 Cardiac Cell Therapy With First Ischemic Heart Disease Patient Dosed

Oct 27, 2026

Heartseed Inc. has dosed the first patient with severe heart failure secondary to ischemic heart disease in its EMERALD Phase I/II clinical trial of HS-005, an allogeneic iPS cell-derived cardiomyocyte spheroid therapy delivered via catheter. An Inde...

Heartseed Director Resigns After Appointment as Japan’s Digital Minister

Sep 17, 2026

Heartseed Inc. announced the resignation of independent board director Toshiharu Furukawa, effective September 17, 2026, following his appointment as Minister of State and Minister for Digital Transformation. The company stated it will continue to me...

Heartseed Secures ¥2 Billion Credit Line to Advance Heart Failure Cell Therapy

Aug 14, 2026

Heartseed Inc. has secured a 2 billion yen special overdraft facility from Sumitomo Mitsui Banking Corporation to support its push toward manufacturing and marketing approval for its lead cardiomyocyte replacement therapy, HS-001. The unsecured, one-...

Heartseed Books Subsidy-Driven Non-Operating Gain Without Changing Outlook

Aug 14, 2026

Heartseed Inc. reported non-operating income of 69,833 thousand yen for the six months ended June 30, 2026, driven mainly by a 52,000 thousand yen subsidy tied to the Japan Agency for Medical Research and Development’s program for basic technol...

Heartseed posts interim loss but keeps strong equity base as R&D weighs on 2026 outlook

Aug 14, 2026

Heartseed Inc. reported non-consolidated net sales of ¥467 million for the six months ended June 30, 2026, down from ¥1,919 million in the prior comparable period, and swung to an interim net loss of ¥554 million, versus a previous pro...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 19, 2026