Tauns Laboratories, Inc. (197A) AI Stock Analysis

• Market Cap: ¥57.89B
• Dividend Yield: 5.09%
• Average Volume (3M): 400.80K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 271
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Specialties
• EPS (TTM): N/A
• Shares Outstanding: 106,419,464
• 10 Day Avg. Volume: 355,040
• 30 Day Avg. Volume: 400,796
• PEG Ratio: 1.16
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 25.61
• 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: 69 Neutral
• Price Target: ¥596.00 ▲(17.09% Upside)
• Action: Downgraded Date: 11/18/25
• Date: Action: Downgraded 11/18/25

Tauns Laboratories, Inc. has a strong financial foundation and attractive valuation, making it appealing for value investors. However, the current bearish technical indicators and potential liquidity challenges due to historical cash flow volatility are significant risks that weigh on the overall score.

Positive Factors

Strong profit margins

Sustained high gross, net, EBIT and EBITDA margins indicate durable operating efficiency and pricing power. Over 2–6 months this supports resilience to moderate cost shocks, funds reinvestment in R&D or commercialization, and underpins long-term cash generation and shareholder returns.

Improving free cash flow

Material improvement in free cash flow and a healthy operating cash flow-to-net-income ratio point to stronger conversion of profits into cash. This durable cash generation enhances ability to fund capex, dividends, or debt reduction and increases financial flexibility over the medium term.

Solid balance sheet and high ROE

A solid equity base with manageable leverage and impressive ROE signals efficient capital deployment and room to support growth initiatives. This structural strength preserves strategic optionality for investments or M&A and reduces vulnerability to short-term funding shocks.

Negative Factors

Rising total debt

An upward trend in total debt raises long-term financing risk: higher interest expense and refinancing needs can constrain capex or dividends. If earnings or cash flow soften, elevated leverage reduces flexibility and raises downside in adverse macro conditions.

Cash flow volatility

Historical swings including a prior negative operating cash flow signal inconsistent cash generation. Persistent volatility can impair the company’s ability to reliably fund operations, capital projects or payouts, and makes planning and deleveraging more challenging.

Slight gross profit decline

Even a modest drop in gross profit points to emerging cost pressures or margin squeeze. If sustained, this could erode the company’s margin advantage, necessitate pricing actions that risk demand, or require structural cost cuts that hamper growth investments.

Tauns Laboratories, Inc. Business Overview & Revenue Model

Company Description

TAUNS Laboratories, Inc. develops and manufactures vitro diagnostic drugs & measuring instruments. It also provides import and export of industrial measuring instruments, medical, physical, chemical and measuring instruments. The company was founded in April 1987 and is headquartered in Izunokuni, Japan.

How the Company Makes Money

Tauns Laboratories generates revenue through multiple channels, primarily by selling its diagnostic products and therapeutic solutions to hospitals, laboratories, and healthcare providers. The company operates on a direct sales model as well as through strategic partnerships with larger pharmaceutical and biotechnology firms that distribute its products in various regions. Additionally, Tauns Laboratories may engage in licensing agreements for its proprietary technologies and innovations, providing a steady source of income. Grants and funding from governmental and private organizations for research and development also contribute to its financial stability, allowing the company to expand its product offerings and enhance its market presence.

Tauns Laboratories, Inc. Financial Statement Overview

Summary

Tauns Laboratories, Inc. shows strong financial health with consistent revenue growth and profitability. The balance sheet is stable, though rising debt levels warrant attention. Cash flow improvements are promising, but historical volatility should be monitored.

Income Statement

Tauns Laboratories, Inc. has demonstrated strong revenue growth with a 5.79% increase in the latest period. The company maintains robust profitability metrics with a high gross profit margin and net profit margin. EBIT and EBITDA margins are also strong, indicating efficient operations. However, the slight decline in gross profit from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio that remains manageable. The return on equity is impressive, indicating effective use of shareholder funds. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth, although the previous year's negative operating cash flow is a concern. The operating cash flow to net income ratio indicates a strong cash generation capability relative to net income, but the volatility in free cash flow suggests potential liquidity challenges.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	18.63B	18.43B	15.67B	17.46B
Gross Profit	12.33B	12.50B	8.79B	14.29B
EBITDA	9.02B	8.65B	5.32B	8.55B
Net Income	6.32B	5.77B	3.03B	4.48B
Balance Sheet
Total Assets	36.52B	29.26B	18.81B	20.88B
Cash, Cash Equivalents and Short-Term Investments	9.27B	9.42B	1.24B	6.35B
Total Debt	14.42B	9.54B	6.47B	4.90B
Total Liabilities	19.10B	15.59B	10.32B	13.52B
Stockholders Equity	17.42B	13.67B	8.49B	7.36B
Cash Flow
Free Cash Flow	2.14B	5.97B	-4.32B	8.39B
Operating Cash Flow	6.82B	9.94B	-3.16B	10.69B
Investing Cash Flow	-9.26B	-4.11B	-1.62B	-2.68B
Financing Cash Flow	2.28B	2.36B	-330.20M	-3.66B

Tauns Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 509.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:197A, the sentiment is Positive. The current price of 509 is below the 20-day moving average (MA) of 543.20, below the 50-day MA of 527.71, and below the 200-day MA of 530.31, indicating a bullish trend. The MACD of 3.31 indicates Positive momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 81.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:197A.

Tauns Laboratories, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4516	77 Outperform	¥345.32B	11.61	―	2.12%	4.07%	22.59%
4886	76 Outperform	¥66.08B	14.41	―	2.52%	5.44%	-20.33%
197A	69 Neutral	¥57.89B	15.31	―	5.09%	―	―
4569	69 Neutral	¥89.33B	9.20	―	3.36%	11.65%	93.46%
4554	68 Neutral	¥57.67B	25.14	6.49%	2.39%	12.01%	-51.38%
4887	59 Neutral	¥229.68B	-101.98	―	2.28%	12.78%	-105.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tauns Laboratories, Inc. Corporate Events

Tauns Laboratories Issues FY2026 Q2 Financial Highlights

Tauns Laboratories, Inc. has released a financial highlights document for the second quarter of FY2026, covering the period ended December 31, 2025. The release outlines the company’s corporate profile, quarterly financial results, full-year forecast, and recent topics, indicating a structured update to investors and stakeholders on its current performance and future outlook.

The most recent analyst rating on (JP:197A) stock is a Hold with a Yen613.00 price target. To see the full list of analyst forecasts on Tauns Laboratories, Inc. stock, see the JP:197A Stock Forecast page.

Tauns Laboratories Profit Halves on Lower Sales but Keeps Full-Year Outlook and Dividend Plan

Tauns Laboratories reported a sharp year-on-year decline for the six months ended December 31, 2025, with net sales down 30.9% to ¥8.28 billion and net income dropping 56.0% to ¥2.06 billion, compressing margins and halving basic earnings per share. Despite the weaker interim results and a lower equity-to-asset ratio, the company raised its interim dividend to ¥14 per share and kept its full-year dividend forecast at ¥28, while projecting modest full-year sales growth of 11.5% and a 36.4% rise in full-year net income, signaling management’s confidence in earnings recovery and continued shareholder returns.

The balance sheet expanded with total assets rising to ¥44.20 billion, though net assets were largely flat and leverage increased compared with the previous fiscal year-end. The company left its full-year operating and ordinary income forecasts almost unchanged year on year, suggesting anticipated stability in core profitability even as it navigates a cooling revenue environment and potential market or pricing normalization after prior strong periods.

The most recent analyst rating on (JP:197A) stock is a Hold with a Yen613.00 price target. To see the full list of analyst forecasts on Tauns Laboratories, Inc. stock, see the JP:197A Stock Forecast page.