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StemCell Institute (7096) AI Stock Analysis

JP:7096

StemCell Institute

(TSE/TYO:7096)

Select Model
Rating:56Neutral
Price Target:JPY 780.00â–²(11.27% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by weakened financial quality in 2026—sharp profitability compression and materially negative free cash flow—despite steady revenue growth and a generally healthy, low-leverage balance sheet. Technical indicators are moderately supportive in the near term, but the high P/E (~52) keeps the valuation component weak and raises execution-risk sensitivity.

Positive Factors
Steady revenue growthContinued revenue expansion indicates ongoing customer demand and market traction. Although growth has moderated from earlier years, positive top-line performance provides a durable base for rebuilding profitability if execution improves.
Negative Factors
Sharp profitability compressionThe steep decline in net and operating profitability weakens earnings quality and reduces the conversion of revenue into shareholder returns. Sustained margin pressure could limit internal funding and increase sensitivity to execution or cost-control challenges.

StemCell Institute (7096) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:7096-13.46%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 7.06B
Dividend Yield
―
Average Volume (3M)
4,208
Price to Earnings (P/E)
48.1
Beta (1Y)
0.46
Revenue Growth
4.85%
EPS Growth
-40.57%
Country
Japan
Employees
117
Sector
General
Sector Strength
55
Industry
Biotechnology

StemCell Institute Business Overview & Revenue Model

Company Description

StemCell Institute Inc. provides specialized stem cell banking services throughout Japan. In addition to its core preservation activities, the company is deeply involved in the research and development of medical therapies that utilize stem cells, an...

How the Company Makes Money

null

StemCell Institute Financial Statement Overview

Summary

Mixed fundamentals. Revenue growth has been steady, and gross margin remains solid (~61% in 2026), but profitability weakened sharply in 2026 (net margin fell to ~5.5% from ~14.4% in 2025). The balance sheet is generally healthy with low-to-modest leverage (debt-to-equity ~0.18), yet cash flow is a major concern: operating cash flow dropped and free cash flow swung to a large deficit in 2026.

Income Statement

64Positive

Balance Sheet

72Positive

Cash Flow

34Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue2.81B2.81B2.68B2.48B2.09B1.78B
Gross Profit1.71B1.71B1.69B1.58B1.34B1.11B
EBITDA368.87M379.99M695.19M534.00M402.49M309.47M
Net Income153.86M155.92M385.80M310.98M198.03M133.73M
Balance Sheet
Total Assets8.12B8.12B7.52B6.59B5.83B5.23B
Cash, Cash Equivalents and Short-Term Investments2.83B2.83B3.20B2.85B3.32B3.51B
Total Debt473.81M473.81M518.96M10.78M5.89M0
Total Liabilities5.05B5.05B4.89B3.90B3.53B3.13B
Stockholders Equity2.68B2.68B2.63B2.69B2.30B2.10B
Cash Flow
Free Cash Flow0-335.78M-10.11M132.97M39.77M264.81M
Operating Cash Flow073.51M467.69M334.63M99.67M469.29M
Investing Cash Flow0-337.92M-259.08M-811.77M-285.10M404.17M
Financing Cash Flow0-175.09M146.70M-1.33M-869.00K644.37M

StemCell Institute Technical Analysis

Technical Analysis SentimentNegative
Last Price701.00

Price Trends

50DMA743.32Negative
100DMA731.49Negative
200DMA760.23Negative

Market Momentum

MACD-9.74Positive
RSI29.46Positive
STOCH27.00Neutral

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 701.00 is below the 20-day moving average (MA) of 727.10, below the 50-day MA of 743.32, and below the 200-day MA of 760.23, indicating a bearish trend. The MACD of -9.74 indicates Positive momentum. The RSI at 29.46 is Positive, neither overbought nor oversold. The STOCH value of 27.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7096.

StemCell Institute Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7096 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7096JP:709656NeutralJPY 7.18B48.11――4.85%-40.57%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4593JP:459348NeutralJPY 37.00B55.04――-47.32%―
JP:4978JP:497842NeutralJPY 13.03B-26.58――-18.71%-246.54%
JP:7774JP:777442NeutralJPY 25.54B-58.02――3.43%-53.59%
JP:4599JP:459940UnderperformJPY 8.71B-4.68―――4.85%
JP:7776JP:777626UnderperformJPY 7.43B-6.49――-56.16%3.12%

* General Sector Average

Performance Comparison

-50%0%50%JP:7096JP:4593JP:4599JP:4978JP:7774JP:7776Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7096 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7096StemCell Institute701.00-109.00-13.46%
JP:4593Healios KK273.00-221.00-44.74%
JP:4599StemRIM Inc.139.00-134.00-49.08%
JP:4978ReproCELL Inc.122.00-51.00-29.48%
JP:7774Japan Tissue Engineering Co., Ltd.629.00153.0032.14%
JP:7776CellSeed Inc.188.00-249.00-56.98%
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: Aug 17, 2026