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Japan Tissue Engineering Co., Ltd. (7774) AI Stock Analysis

JP:7774

Japan Tissue Engineering Co., Ltd.

(TSE/TYO:7774)

Select Model
Rating:37Underperform
Price Target:JPY 588.00â–¼(-6.52% Downside)
Action:reiterated
Date:10/31/26

The overall score is at the minimum of the range, reflecting severe fundamental and market challenges. The company's persistent losses and cash burn are the most significant risks, undermining an otherwise debt-free balance sheet. This is compounded by strong bearish technical momentum, with the stock price in a clear downtrend below key moving averages. The negative P/E ratio further confirms the lack of earnings power, leaving no positive catalysts to offset the prevailing weaknesses.

Positive Factors
Conservative Balance SheetEffectively no debt materially reduces solvency and refinancing risk, giving J-TEC greater resilience while it addresses operating losses. The substantial equity base also provides financial capacity to continue developing and commercializing regenerative medicine products without relying heavily on borrowed capital.
Negative Factors
Recent Revenue ContractionThe reversal from strong growth in 2024 to consecutive annual revenue declines indicates that recent demand or commercialization momentum has weakened. Persistent contraction would limit operating leverage, reduce resources available for research and market expansion, and make a durable recovery in earnings more difficult.

Japan Tissue Engineering Co., Ltd. (7774) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:7774+32.14%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 25.54B
Dividend Yield
―
Average Volume (3M)
118.04K
Price to Earnings (P/E)
-58.0
Beta (1Y)
1.22
Revenue Growth
3.43%
EPS Growth
-53.59%
Country
Japan
Employees
200
Sector
General
Sector Strength
55
Industry
Biotechnology

Japan Tissue Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Tissue Engineering Co., Ltd. operates within the regenerative medicine sector in Japan. The company's activities are organized into three core divisions: Regenerative Medicine Product, Regenerative Medicine Outsourcing, and Research and Develop...

How the Company Makes Money

The company primarily makes money by commercializing regenerative medicine products and associated services. Its core revenue stream is product sales to healthcare providers (typically via Japan’s healthcare reimbursement framework) of approved, tiss...

Japan Tissue Engineering Co., Ltd. Financial Statement Overview

Summary

Financial performance is critically weak. The Income Statement (Score 22) shows persistent net losses and declining revenue, while Cash Flow (Score 18) indicates consistent cash burn. The debt-free Balance Sheet (Score 58) provides some stability, but the overall financial health is precarious due to ongoing unprofitability and eroding equity.

Income Statement

22Negative

Balance Sheet

58Neutral

Cash Flow

18Very Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue2.52B2.18B2.46B2.51B2.03B2.10B
Gross Profit1.56B1.23B1.47B1.67B1.12B1.24B
EBITDA-94.39M-392.06M-124.74M242.31M-596.67M-373.21M
Net Income-440.13M-734.75M-255.30M143.17M-729.32M-497.89M
Balance Sheet
Total Assets5.91B5.68B6.51B6.99B6.88B7.60B
Cash, Cash Equivalents and Short-Term Investments3.35B3.25B3.89B4.27B4.13B4.93B
Total Debt0000133.00K936.00K
Total Liabilities766.06M592.71M687.95M908.43M946.15M931.66M
Stockholders Equity5.14B5.09B5.83B6.08B5.94B6.67B
Cash Flow
Free Cash Flow0-562.67M-224.48M78.23M-771.66M-327.82M
Operating Cash Flow0-488.02M-148.37M274.14M-622.60M-225.25M
Investing Cash Flow0253.03M-232.53M-242.23M1.12B-116.48M
Financing Cash Flow00-3,000-134.00K-803.00K-823.00K

Japan Tissue Engineering Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price629.00

Price Trends

50DMA817.62Negative
100DMA738.59Negative
200DMA673.41Negative

Market Momentum

MACD-29.29Positive
RSI29.07Positive
STOCH49.87Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7774, the sentiment is Negative. The current price of 629.00 is below the 20-day moving average (MA) of 769.95, below the 50-day MA of 817.62, and below the 200-day MA of 673.41, indicating a bearish trend. The MACD of -29.29 indicates Positive momentum. The RSI at 29.07 is Positive, neither overbought nor oversold. The STOCH value of 49.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7774.

Japan Tissue Engineering Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7774 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4593JP:459348NeutralJPY 37.00B55.04――-47.32%―
JP:4978JP:497845NeutralJPY 13.03B-26.58――-18.71%-246.54%
JP:4592JP:459243NeutralJPY 71.58B-19.22-37.79%――5.71%
JP:7774JP:777437UnderperformJPY 25.54B-58.02――3.43%-53.59%
JP:7776JP:777637UnderperformJPY 7.43B-6.49――-56.16%3.12%

* General Sector Average

Performance Comparison

-50%0%50%JP:7774JP:4592JP:4593JP:4978JP:7776Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7774 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7774Japan Tissue Engineering Co., Ltd.629.00153.0032.14%
JP:4592SanBio Co 917.00-1913.00-67.60%
JP:4593Healios KK273.00-221.00-44.74%
JP:4978ReproCELL Inc.122.00-51.00-29.48%
JP:7776CellSeed Inc.188.00-249.00-56.98%

Japan Tissue Engineering Co., Ltd. Corporate Events

Japan Tissue Engineering Maintains Profitability as JACC Orders Climb Toward Annual Target

Oct 30, 2026

Japan Tissue Engineering reported solid sales growth in the first half of fiscal 2026, with net sales rising to ¥1,499 million and profitability maintained despite one-time expenses booked in the second quarter. Operating profit broke even and n...

Japan Tissue Engineering Returns to Profit as Sales Surge and Forecasts Signal Further Recovery

Oct 30, 2026

Japan Tissue Engineering Co., Ltd. reported a sharp year-on-year recovery in results for the six months ended September 30, 2026, with net sales rising 50.1% to ¥1,499 million and returning to a small profit of ¥4 million, compared with a &...

Japan Tissue Engineering Revises FY2026 Financial Disclosure, Lifts Product Business Profit Figure

Jul 31, 2026

Japan Tissue Engineering Co., Ltd. has issued a correction to its FY2027 Q1 financial results briefing materials originally disclosed on July 30, 2026, and has posted the revised version on its website. The changes clarify that multiple fiscal-year l...

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: Oct 31, 2026