Tsubota Laboratory Incorporated (4890) AI Stock Analysis

• Market Cap: ¥8.20B
• Dividend Yield: N/A
• Average Volume (3M): 31.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -12.40%
• EPS Growth: 43.42%
• Country: JP
• Employees: 7
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -5.19
• Shares Outstanding: 25,794,300
• 10 Day Avg. Volume: 26,720
• 30 Day Avg. Volume: 31,016
• PEG Ratio: -0.37
• Price to Book (P/B): 6.35
• Price to Sales (P/S): 7.43
• P/FCF Ratio: -30.40
• 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: 61 Neutral
• Price Target: ¥335.00 ▼(-1.47% Downside)

The stock's overall score is primarily driven by strong financial performance and bullish technical indicators. However, the negative P/E ratio and lack of dividend yield significantly impact the valuation score, lowering the overall attractiveness of the stock.

Positive Factors

Strong Balance Sheet

A high equity ratio and low leverage provide durable financial flexibility, allowing the company to fund R&D, absorb demand shocks, and pursue strategic partnerships without immediate reliance on external debt, supporting multi‑quarter resilience and investment capacity.

Improving Operational Margins

Sustainably high gross margins and rising EBIT/EBITDA margins indicate efficient manufacturing and cost control, enabling reinvestment in product development and distribution. This operational leverage supports long‑term profitability if revenue stabilizes or grows.

Diversified Revenue Sources & R&D

Multiple income streams—product sales, partnerships, licensing—and ongoing R&D create durable competitive advantages, reduce customer concentration risk, and sustain product pipeline development, reinforcing medium‑term growth potential across healthcare and consumer channels.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating and free cash flow undermines the firm's ability to self‑fund capex, inventory and R&D, forcing reliance on external funding or equity; this can constrain strategic initiatives and raise execution risk over multiple quarters.

Recent Revenue Contraction

A meaningful revenue decline signals demand weakness or lost market share; over several quarters this erodes scale economics, pressures margins and limits the return on R&D investments, making sustained margin improvement harder without revenue recovery.

Profitability Volatility

Large swings in net profitability indicate unstable earnings quality and forecasting difficulty; recurring volatility can impair reinvestment planning, elevate financing costs, and weaken stakeholder confidence unless management demonstrates consistent profit conversion.

Tsubota Laboratory Incorporated Business Overview & Revenue Model

Company Description

Tsubota Laboratory Incorporated engages in the research and development of pharmaceuticals and medical devices for the treatment of myopia, dry eyes, and presbyopia. The company was incorporated in 2012 and is based in Tokyo, Japan.

How the Company Makes Money

Tsubota Laboratory generates revenue through multiple streams, primarily from the sale of its optical products, including prescription lenses and eyewear. The company has established partnerships with healthcare providers, optical retailers, and distributors, which facilitate the distribution of its products to a broader audience. Additionally, Tsubota Laboratory invests in research and development to create new technologies and products, which can lead to increased sales. The company may also earn revenue from licensing its proprietary technologies and engaging in collaborations with other firms in the optical and healthcare industries, further diversifying its income sources.

Tsubota Laboratory Incorporated Financial Statement Overview

Summary

Tsubota Laboratory Incorporated shows strong revenue growth and operational efficiency, reflected in improved profit margins. The balance sheet is solid, with low leverage and a strong equity base. However, cash flow challenges need to be addressed to ensure long-term sustainability and growth potential.

Income Statement

The company demonstrated strong revenue growth, with a significant increase from 2024 to 2025. Gross profit margins are high, indicating efficient production and cost management. However, the net profit margin has been volatile, with a significant loss in 2024 followed by a recovery in 2025. The EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet is robust, with a strong equity position and a low debt-to-equity ratio, indicating financial stability. The company has a high equity ratio, suggesting a solid capital structure. However, the decrease in cash and short-term investments over the years warrants attention.

Cash Flow

The cash flow statement shows challenges, with negative operating cash flow in recent years, indicating potential liquidity issues. Free cash flow has been negative, which could impact future investments and growth. However, the company had positive free cash flow in earlier years, suggesting potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.36B	673.53M	954.69M	640.92M	687.50M
Gross Profit	1.16B	1.18B	21.38M	719.14M	557.02M	606.76M
EBITDA	253.28M	310.89M	-602.60M	184.19M	241.07M	271.61M
Net Income	177.43M	205.77M	-641.32M	90.18M	153.32M	201.61M
Balance Sheet
Total Assets	2.02B	2.50B	2.30B	2.67B	1.62B	1.08B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.54B	1.88B	2.16B	1.17B	610.77M
Total Debt	85.26M	90.38M	116.90M	139.34M	223.82M	242.35M
Total Liabilities	627.88M	915.85M	927.93M	722.59M	873.44M	487.55M
Stockholders Equity	1.39B	1.59B	1.37B	1.95B	744.35M	591.03M
Cash Flow
Free Cash Flow	0.00	-331.75M	-313.35M	-20.27M	582.69M	-8.63M
Operating Cash Flow	0.00	-317.75M	-301.35M	28.49M	654.91M	36.72M
Investing Cash Flow	0.00	-14.55M	-12.00M	-54.03M	-72.23M	-43.60M
Financing Cash Flow	0.00	-12.25M	35.74M	1.01B	-18.53M	236.97M

Tsubota Laboratory Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 340.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4890, the sentiment is Negative. The current price of 340 is above the 20-day moving average (MA) of 330.45, below the 50-day MA of 345.30, and below the 200-day MA of 364.32, indicating a bearish trend. The MACD of -7.09 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 11.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4890.

Tsubota Laboratory Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3417	73 Outperform	¥19.96B	6.97	―	1.83%	4.30%	52.38%
4350	70 Outperform	¥15.69B	10.09	―	2.32%	6.60%	27.97%
3544	67 Neutral	¥11.91B	21.89	―	1.24%	3.58%	-10.70%
4890	61 Neutral	¥8.20B	-47.43	―	―	-12.40%	43.42%
2796	60 Neutral	¥6.09B	-41.10	―	2.65%	15.66%	56.93%
8095	58 Neutral	¥19.28B	8.81	―	3.73%	15.00%	-195.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Tsubota Laboratory Incorporated Corporate Events

Tsubota Laboratory’s Interim Financial Results Highlight Sustainable Growth Strategy

Tsubota Laboratory Incorporated has announced its interim financial results for the fiscal year ending March 31, 2026, emphasizing its commitment to sustainable growth. The company is dedicated to leveraging scientific evidence to create innovative healthcare solutions, which could enhance its market position and provide significant social and economic value. This approach underscores Tsubota Lab’s unique management philosophy, aiming to balance commercial success with addressing critical social health issues.

The most recent analyst rating on (JP:4890) stock is a Hold with a Yen363.00 price target. To see the full list of analyst forecasts on Tsubota Laboratory Incorporated stock, see the JP:4890 Stock Forecast page.

Tsubota Laboratory Reports Significant Revenue Decline and Net Loss

Tsubota Laboratory Incorporated reported a significant decline in its financial performance for the six months ending September 30, 2025, with revenue dropping by 78.9% compared to the previous year. The company experienced a net loss, with operating and ordinary profits also in the negative, reflecting challenges in its operational efficiency and market conditions.

The most recent analyst rating on (JP:4890) stock is a Hold with a Yen363.00 price target. To see the full list of analyst forecasts on Tsubota Laboratory Incorporated stock, see the JP:4890 Stock Forecast page.