Takara Bio Inc. (4974) AI Stock Analysis

• Market Cap: ¥138.12B
• Dividend Yield: 2.18%
• Average Volume (3M): 357.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -0.16%
• EPS Growth: -802.20%
• Country: JP
• Employees: 1,838
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -22.49
• Shares Outstanding: 120,415,600
• 10 Day Avg. Volume: 362,320
• 30 Day Avg. Volume: 357,120
• PEG Ratio: -3.23
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -24.76
• 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): -49.53
• Revenue Forecast (FY): ¥43.71B

• Rating: 52 Neutral
• Price Target: ¥1,112.00 ▲(41.48% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by deteriorating profitability and deeply negative free cash flow, despite a conservatively levered balance sheet. Technicals are strong with price well above moving averages and a positive MACD, but overbought RSI increases near-term downside risk. Valuation support is limited due to losses (negative P/E), with only modest help from the dividend yield.

Positive Factors

Recurring consumables & workflow stickiness

Takara Bio's core sales derive from consumables and reagents that are consumed per experiment and embedded in lab protocols. This creates durable repeat revenue, high switching costs from revalidation, and steady demand as labs maintain validated workflows, supporting long-term revenue visibility.

Conservative balance sheet / low leverage

The company's low debt position provides financial flexibility to fund R&D, contract services, or bridge cash shortfalls. With limited leverage, Takara can endure cyclical revenue swings or negative free cash flow longer without forcing distress sales or immediate refinancing, preserving strategic optionality.

Solid gross margins and top-line growth

A ~55% gross margin across reagent and instrument sales indicates durable product-level profitability and pricing power in genomics workflows. Combined with reported revenue growth, this supports margin sustainability if cost structure is managed and demand for genomic and cell/gene tools continues to expand.

Negative Factors

Deeply negative free cash flow

Persistent negative free cash flow of ~-¥8.4B signals heavy investment, capex, or working-capital strain. This reduces the firm's ability to self-fund operations and R&D, may force cash reserves draws or external financing, and undermines capital allocation flexibility over the medium term.

Swing to operating and net losses

The move from modest profitability to a sizable net loss erodes earnings power and returns on capital. Sustained operating losses increase uncertainty about sustainable margins, constrain reinvestment in products and services, and elevate execution risk while the company tries to restore profitability.

Demand cyclicality tied to research funding

Sales closely track academic and biopharma R&D activity, making revenues sensitive to funding cycles and program timing. This structural cyclicality can amplify revenue volatility, complicate capacity planning, and pressure margins when macro or sector R&D spending weakens, especially amid current losses.

Takara Bio Inc. Business Overview & Revenue Model

Company Description

Takara Bio Inc. (4974) is a leading biotechnology company based in Japan, specializing in the development and manufacturing of innovative products and services for the life sciences sector. The company operates primarily in the areas of genetic engineering, gene therapy, and regenerative medicine, providing a range of solutions including reagents, instruments, and services for genomic research, as well as cell and gene therapies. Takara Bio's core products include a variety of molecular biology reagents, CRISPR/Cas9 gene-editing tools, and other biotechnological innovations aimed at advancing research and development in genetics and biotechnology.

How the Company Makes Money

Takara Bio generates revenue through multiple key streams, primarily focused on the sale of its life sciences research products and services. The company makes money by offering a wide array of molecular biology reagents and kits, which are essential for genetic research and experimentation. Additionally, Takara Bio earns revenue from its advanced therapeutic solutions, including tools for gene editing and cell therapy. Significant partnerships with research institutions and pharmaceutical companies enhance its revenue model through collaborative projects and licensing agreements, further contributing to its earnings. The company also invests in R&D to innovate new products, which can lead to additional revenue opportunities in emerging biotechnology fields.

Takara Bio Inc. Financial Statement Overview

Summary

Despite a strong, low-debt balance sheet, the TTM period shows a swing to operating and net losses (net margin -14.5%) and persistently negative free cash flow (about -¥8.4B), which materially weakens near-term earnings quality and self-funding capacity.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp deterioration in profitability: revenue grew 16.8%, but the company swung to an operating loss and a sizable net loss (net margin -14.5%) versus modest profitability in FY2025 (net margin ~2.3%). Gross margin remains relatively solid (~55% TTM), but the move from positive operating income in recent annual periods (FY2024–FY2025) to losses in TTM indicates meaningful cost pressure and/or one-time charges, making earnings quality and near-term visibility weak despite top-line growth.

Balance Sheet

The balance sheet looks conservatively levered, with low debt relative to equity (debt-to-equity ~0.10 in TTM and ~0.01 in recent annual periods), which provides financial flexibility. However, profitability-driven returns have weakened materially: return on equity turned negative in TTM after being low but positive in FY2024–FY2025 (and much stronger in FY2022–FY2023). In short, leverage is not the issue—earnings power is.

Cash Flow

Cash generation is currently a concern. TTM operating cash flow is positive (~¥4.2B), but free cash flow is deeply negative (~-¥8.4B), following negative free cash flow in FY2024 and FY2025 as well. The gap between operating cash flow and free cash flow suggests heavy investment and/or working-capital pressure, and the recent net loss further increases uncertainty around the company’s ability to self-fund without drawing down cash balances or adjusting spending.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	44.15B	45.04B	43.51B	78.14B	67.70B	46.09B
Gross Profit	23.84B	26.07B	26.91B	44.77B	49.21B	31.87B
EBITDA	-92.00M	6.50B	7.90B	25.98B	31.70B	17.36B
Net Income	-7.20B	1.04B	1.48B	16.01B	19.85B	9.55B
Balance Sheet
Total Assets	130.48B	125.33B	123.21B	129.20B	115.71B	90.98B
Cash, Cash Equivalents and Short-Term Investments	19.83B	29.55B	35.42B	51.85B	23.63B	25.99B
Total Debt	10.00B	1.10B	968.00M	972.00M	1.05B	1.14B
Total Liabilities	29.15B	9.48B	11.42B	16.75B	19.65B	16.68B
Stockholders Equity	101.05B	115.50B	111.50B	112.22B	95.87B	74.18B
Cash Flow
Free Cash Flow	-8.38B	-4.03B	-11.07B	31.02B	-5.55B	5.10B
Operating Cash Flow	4.23B	5.84B	1.71B	36.90B	6.99B	13.94B
Investing Cash Flow	-19.94B	-10.91B	-13.04B	-6.69B	-7.07B	-3.78B
Financing Cash Flow	6.14B	-2.26B	-5.23B	-4.12B	-2.07B	-1.10B

Takara Bio Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 786.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 786 is below the 20-day moving average (MA) of 965.60, below the 50-day MA of 870.80, and below the 200-day MA of 864.16, indicating a bullish trend. The MACD of 93.21 indicates Negative momentum. The RSI at 85.75 is Negative, neither overbought nor oversold. The STOCH value of 97.17 is Negative, 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
4978	59 Neutral	¥17.82B	-54.84	―	―	1.24%	-33.41%
7774	54 Neutral	¥32.33B	-70.05	―	―	-5.65%	-469.19%
4974	52 Neutral	¥138.12B	-19.18	―	2.18%	-0.16%	-802.20%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4593	50 Neutral	¥59.40B	-18.92	―	―	-82.33%	47.73%
7776	49 Neutral	¥14.17B	-11.63	―	―	-42.49%	-2.37%
4599	43 Neutral	¥19.24B	-10.06	―	―	―	11.34%

Takara Bio Inc. Corporate Events

Takara Bio Board Backs Parent’s Tender Offer, Paving Way for Delisting

Takara Bio Inc.’s board has endorsed a tender offer by its parent company, Takara Holdings Inc., recommending that shareholders tender their shares at ¥1,150 per share. The move is part of a plan for Takara Holdings to acquire all remaining shares, potentially leading to Takara Bio’s delisting from the Tokyo Stock Exchange and making it a wholly owned subsidiary.

Takara Holdings currently holds a majority stake, and the tender offer has no upper limit on the number of shares to be purchased, increasing the likelihood that free float will fall below listing requirements. If completed as planned, the transaction will end market trading in Takara Bio’s shares and further integrate the biotechnology group within Takara Holdings’ corporate structure, affecting liquidity and governance for existing minority investors.

The most recent analyst rating on (JP:4974) stock is a Sell with a Yen747.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.

Takara Bio Deepens Losses, Maintains Full-Year Forecast and Dividend Suspension

Takara Bio Inc. reported nine-month results to December 31, 2025 showing net sales of ¥28.39 billion, down 3.0% year on year, and a deepening loss, with operating loss widening to ¥4.86 billion and net loss attributable to owners of the parent expanding to ¥9.62 billion. The company’s equity ratio fell to 77.4% from 92.2% at the previous fiscal year-end, net assets per share declined, and basic earnings per share swung further negative, underscoring mounting pressure on profitability and balance sheet strength.

Management kept its full-year forecast unchanged, projecting a 6.5% decline in net sales to ¥42.1 billion and a full-year net loss of ¥9.0 billion, and it also maintained guidance for no interim or year-end dividend for the year ending March 31, 2026. During the period, Takara Bio expanded its consolidation scope by adding Curio Biosciences, Inc., signaling continued strategic investment despite losses, a move that could influence its competitive positioning in advanced life science tools while near-term returns to shareholders remain constrained.

The most recent analyst rating on (JP:4974) stock is a Sell with a Yen747.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.

Takara Bio Swings to Deep Loss, Confirms Forecast and Scraps Dividend

Takara Bio reported consolidated net sales of ¥28.39 billion for the nine months ended December 31, 2025, down 3.0% year on year, and posted operating and ordinary losses of ¥4.85 billion and ¥5.09 billion, respectively. Profit attributable to owners of parent deteriorated sharply to a ¥9.62 billion loss, compared with a ¥1.37 billion loss a year earlier, driving basic earnings per share down to negative ¥79.89 and reducing the equity ratio to 77.4% from 92.2% at the previous fiscal year-end.

The company maintained its full-year forecast for fiscal 2025, projecting a 6.5% decline in net sales to ¥42.1 billion and a net loss of ¥9.0 billion, and it plans to pay no interim or year-end dividends, versus a ¥17 per-share dividend in the prior year. During the period Takara Bio expanded its consolidation scope by adding Curio Biosciences, Inc., signaling ongoing strategic investment despite deepening losses, a weaker balance sheet, and suspended shareholder returns, developments that may heighten investor focus on execution and turnaround prospects.

The most recent analyst rating on (JP:4974) stock is a Sell with a Yen747.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.