Takara Bio Inc. (4974) AI Stock Analysis

• Market Cap: ¥98.02B
• Dividend Yield: 2.09%
• Average Volume (3M): 237.18K
• Price to Earnings (P/E): 94.6
• Beta (1Y): 0.73
• Revenue Growth: 3.53%
• EPS Growth: -29.66%
• Country: JP
• Employees: 1,838
• Sector: Healthcare
• Sector Strength: 39
• Industry: Biotechnology
• EPS (TTM): 20.10
• Shares Outstanding: 120,415,600
• 10 Day Avg. Volume: 230,490
• 30 Day Avg. Volume: 237,176
• PEG Ratio: -0.67
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.73
• 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: ¥800.33
• Price Target Upside: -1.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: ¥846.00 ▲(3.93%Upside)

Takara Bio Inc.'s stock is supported by strong financial stability and moderate technical indicators suggesting short-term positivity. However, challenges in profitability and high valuation relative to earnings limit the potential upside. The company's negative free cash flow and high P/E ratio are significant risks that need addressing to improve the stock's attractiveness.

Takara Bio Inc. Business Overview & Revenue Model

Company Description

Takara Bio Inc. is a biotechnology company based in Japan, primarily engaged in the development, manufacturing, and distribution of biomedical products and services. The company operates in sectors such as gene therapy, cell therapy, and genetic engineering, providing innovative solutions for research and clinical applications. Its core products include reagents, instruments, and services related to gene discovery, gene expression, and protein analysis, catering to both academic and industrial research markets worldwide.

How the Company Makes Money

Takara Bio Inc. generates revenue through the sale of its life sciences products, including reagents, instruments, and services, which are used in a wide range of research applications. The company also earns money by providing contract research and development services, leveraging its expertise in gene and cell therapy technologies. Additionally, Takara Bio Inc. engages in strategic partnerships and collaborations with other biotechnology firms and research institutions, which help expand its market reach and drive sales growth. Licensing agreements for its proprietary technologies further contribute to its revenue streams.

Takara Bio Inc. Financial Statement Overview

Summary

Takara Bio Inc. maintains strong financial stability with a high equity ratio and low debt, but faces challenges in revenue generation and profitability. Revenue has declined, and margins have decreased, impacting net income and resulting in negative free cash flow.

Income Statement

Takara Bio Inc. has shown a decline in total revenue over recent years, with a significant drop from 2023 to 2024, followed by a slight increase in 2025. The gross profit margin remains strong at 57.9% for 2025, indicating efficient cost management. However, net income has declined, leading to a lower net profit margin of 2.31% in 2025. EBIT and EBITDA margins are also lower compared to previous years, reflecting challenges in maintaining profitability.

Balance Sheet

The company's balance sheet is robust, with a high equity ratio of 92.12% for 2025, suggesting strong financial stability. The debt-to-equity ratio is low at 0.01, indicating minimal leverage and reduced financial risk. Return on equity (ROE) is modest at 0.9%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals challenges, as free cash flow has been negative for the past two years, with a decrease from -11.07 billion JPY in 2024 to -4.03 billion JPY in 2025, reflecting high capital expenditures. The operating cash flow to net income ratio is favorable at 5.61, indicating effective cash generation from operations despite the net income decline.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.04B	43.51B	78.14B	67.70B	46.09B
Gross Profit	26.07B	26.91B	44.77B	49.21B	31.87B
EBITDA	6.50B	7.90B	25.28B	33.05B	17.74B
Net Income	1.04B	1.48B	16.01B	19.85B	9.55B
Balance Sheet
Total Assets	125.33B	123.21B	129.20B	115.71B	90.98B
Cash, Cash Equivalents and Short-Term Investments	29.55B	35.42B	51.85B	23.63B	25.99B
Total Debt	1.10B	968.00M	972.00M	1.05B	1.14B
Total Liabilities	9.48B	11.42B	16.75B	19.65B	16.68B
Stockholders Equity	115.50B	111.50B	112.22B	95.87B	74.18B
Cash Flow
Free Cash Flow	-4.03B	-11.07B	31.02B	-5.55B	5.10B
Operating Cash Flow	5.84B	1.71B	36.90B	6.99B	13.94B
Investing Cash Flow	-10.91B	-13.04B	-6.69B	-7.07B	-3.78B
Financing Cash Flow	-2.26B	-5.23B	-4.12B	-2.07B	-1.10B

Takara Bio Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 814.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4974, the sentiment is Positive. The current price of 814 is above the 20-day moving average (MA) of 792.40, above the 50-day MA of 791.94, and below the 200-day MA of 909.16, indicating a neutral trend. The MACD of 5.95 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 79.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4974.

Takara Bio Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4587	67 Neutral	$198.83B	13.77	29.98%	―	66.89%	506.88%
Sector *	64 Neutral	¥341.99B	10.89	-2.99%	2.57%	11.76%	-9.96%
4974	61 Neutral	¥98.02B	94.62		2.09%	3.53%	-29.66%
4593	56 Neutral	¥48.05B	―		―	374.19%	35.53%
4565	48 Neutral	$76.38B	―	-3.36%	―	87.83%	75.84%
4592	48 Neutral	$149.72B	―	-197.82%	―	―	-3.32%
2160	43 Neutral	€154.64B	108.76	-2.52%	―	-17.18%	-108.99%

Takara Bio Inc. Corporate Events

Takara Bio Inc. Highlights Operational Independence Within Takara Holdings Group

Takara Bio Inc. has announced its relationship with its parent company, Takara Holdings Inc., highlighting its operational independence within the group. Despite being part of a larger corporate structure, Takara Bio Inc. maintains autonomy in its business operations, reporting to Takara Holdings Inc. without requiring prior approval for board resolutions. This structure aims to maximize corporate value while ensuring the company’s growth and independence.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen830.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.

Takara Bio Inc. Announces Leadership Changes to Strengthen Management

Takara Bio Inc. announced a change in its leadership structure, with Koichi Nakao transitioning from President to Chairman of the Board, and Tsuyoshi Miyamura stepping up as the new President and Representative Director. This strategic move aims to strengthen the company’s management system, potentially impacting its operational efficiency and market positioning positively, while stakeholders may anticipate enhanced leadership dynamics.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen1000.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.

Takara Bio Inc. Announces Dividend Distribution for Fiscal Year 2025

Takara Bio Inc. announced a resolution to distribute dividends from surplus, maintaining a dividend of ¥17.00 per share for the fiscal year ended March 31, 2025. This decision aligns with the company’s policy of returning profits to shareholders while ensuring sufficient reserves for ongoing research and development, reflecting a payout of approximately 116% of the expected net income.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen1000.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.

Takara Bio Inc. Reports Fiscal Year 2025 Financial Results with Growth in Sales

Takara Bio Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 3.5% increase in net sales compared to the previous year. Despite the increase in sales, the company experienced a decline in operating and ordinary profits by 24.6% and 23.9%, respectively. The company maintained its dividend payout, reflecting a stable return to shareholders, while forecasting a significant increase in net sales and profits for the next fiscal year.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen1000.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.

Takara Bio Completes Merger with Subsidiary ViSpot

Takara Bio Inc. has completed the absorption-type merger of its wholly owned subsidiary, ViSpot, Inc., as part of its strategy to streamline management and accelerate business growth. The merger, effective May 1, 2025, is expected to have a minor impact on the company’s consolidated business performance.