Trans Genic Inc. (2342) AI Stock Analysis

• Market Cap: ¥4.59B
• Dividend Yield: N/A
• Average Volume (3M): 549.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -0.77%
• EPS Growth: -288.43%
• Country: JP
• Employees: 236
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.09
• Shares Outstanding: 16,999,142
• 10 Day Avg. Volume: 1,508,680
• 30 Day Avg. Volume: 549,150
• PEG Ratio: <0.01
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -37.42
• 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: 56 Neutral
• Price Target: ¥280.00 ▲(10.24% Upside)
• Action: Reiterated Date: 12/31/25
• Date: Action: Reiterated 12/31/25

The score is held down primarily by weak financial performance (declining revenue, losses, and negative free cash flow), partially offset by constructive technical strength with the price trading above key moving averages and a positive MACD. Valuation remains a risk signal given the negative P/E and lack of dividend support.

Positive Factors

Specialized Product Niche

Trans Genic’s focus on genetically engineered animal models is a durable, specialized business serving drug discovery and biomedical research. This niche requires technical expertise and high switching costs, supporting long-term customer relationships and steady structural demand from pharma and academic R&D.

Balance Sheet Stability

The company’s moderate leverage and stable equity ratio provide financial flexibility to fund R&D and operations through cyclical periods. A solid equity base reduces near-term refinancing pressure and supports strategic choices without forcing rapid asset sales or severe deleveraging.

Improving Operating Cash Generation

A recent positive shift in operating cash flow and a favorable operating-CF-to-net-income ratio indicate improving ability to convert operations into cash. If sustained, this enhances runway for capex and R&D, reducing reliance on external funding and supporting long-term operations.

Negative Factors

Declining Revenue Trend

A declining top line reduces scale advantages and limits the company’s ability to spread fixed R&D and facility costs. Persistent revenue contraction undermines long-term margin recovery and makes it harder to justify ongoing investment in specialized models versus better-funded competitors.

Profitability Deterioration

Sustained negative EBIT and net income plus margin compression signal structural cost or pricing pressures. Poor profitability erodes retained earnings, weakens return metrics, and constrains reinvestment into product development, threatening competitiveness over multiple quarters.

Negative Free Cash Flow

Persistent negative free cash flow forces reliance on external capital or asset monetization to fund capex and growth. Over time, this raises dilution or leverage risk, limits strategic flexibility, and can pressure R&D spending that is critical to maintaining the company’s niche advantage.

Trans Genic Inc. Business Overview & Revenue Model

Company Description

Trans Genic Inc. develops, distributes, and licenses genetically modified animals and antibodies in Japan. It operates through Drug Discovery Support Business and Investment Business segments. The company provides glycan synthesis and analysis services; non-clinical studies for pharmaceuticals, foods, cosmetics, chemical substances, etc., as well as various safety tests for foods, and pharmaceutical agents; and support for bioequivalence test, including clinical trials, pharmacokinetic measurements, and the preparation of clinical trial reports; as well as hospital support services. It also offers drug efficiency and pharmacological test and safety studies; sugar chain analysis and synthesis services; advice and support services, including M&A, business revitalization, business succession services; and contract production services, such as genetically modified mice, antibodies, protein hypers, and expressing cells, as well as sells mouse-related products and mouse models, and research reagents. The company was formerly known as Kumamoto Immunochemical Laboratories Inc. and changed its name to Trans Genic Inc. in April 2000. Trans Genic Inc. was incorporated in 1998 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

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Trans Genic Inc. Financial Statement Overview

Summary

Overall fundamentals are pressured by declining revenue and continued losses (negative EBIT and net income), with a sharply weaker gross margin. The balance sheet is comparatively steadier with moderate leverage and a stable equity base, while cash flow improved recently but remains challenged by negative free cash flow.

Income Statement

Trans Genic Inc. has experienced fluctuating revenue growth, with a recent decline in total revenue from the previous year. The company has faced challenges in maintaining profitability, as indicated by negative EBIT and net income in the latest period. The gross profit margin has decreased significantly from previous years, reflecting potential cost management issues.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. However, the return on equity has turned negative due to recent net losses, indicating challenges in generating returns for shareholders. The equity ratio remains stable, showing a solid equity base relative to total assets.

Cash Flow

The cash flow statement reveals volatility in operating cash flows, with a recent positive shift. However, free cash flow remains negative, indicating ongoing challenges in generating surplus cash after capital expenditures. The operating cash flow to net income ratio is positive, suggesting some efficiency in cash generation relative to reported losses.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.32B	13.01B	13.08B	11.43B	12.58B	11.05B
Gross Profit	2.28B	2.17B	2.25B	1.99B	3.84B	2.78B
EBITDA	76.02M	-64.37M	253.62M	158.37M	2.07B	1.15B
Net Income	-963.26M	-1.09B	4.08M	-409.67M	1.88B	546.29M
Balance Sheet
Total Assets	9.72B	9.59B	9.84B	10.68B	10.44B	8.93B
Cash, Cash Equivalents and Short-Term Investments	2.30B	2.56B	2.48B	3.46B	4.62B	3.03B
Total Debt	2.85B	2.58B	2.26B	2.43B	1.86B	2.06B
Total Liabilities	4.87B	4.73B	3.84B	4.56B	3.80B	3.89B
Stockholders Equity	4.79B	4.76B	5.89B	6.02B	6.53B	4.92B
Cash Flow
Free Cash Flow	0.00	-81.35M	-658.12M	-1.74B	1.26B	1.08B
Operating Cash Flow	0.00	94.10M	-392.45M	-1.43B	1.79B	1.22B
Investing Cash Flow	0.00	-287.85M	-280.93M	-216.02M	981.87M	48.43M
Financing Cash Flow	0.00	265.10M	-342.69M	484.98M	-1.18B	10.04M

Trans Genic Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 254.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2342, the sentiment is Negative. The current price of 254 is below the 20-day moving average (MA) of 288.00, below the 50-day MA of 296.28, and above the 200-day MA of 239.59, indicating a neutral trend. The MACD of -5.99 indicates Positive momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2342.

Trans Genic Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4880	57 Neutral	¥7.96B	59.41	―	1.24%	-14.78%	-95.53%
2342	56 Neutral	¥4.59B	-828.32	―	―	-0.77%	-288.43%
4978	56 Neutral	¥16.02B	120.78	―	―	1.24%	-33.41%
6190	56 Neutral	¥1.85B	6.09	―	―	-6.92%	-144.96%
7774	54 Neutral	¥24.81B	-34.16	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7776	49 Neutral	¥12.00B	-8.14	―	―	-42.49%	-2.37%