Takara Bio Inc. (4974) AI Stock Analysis

• Market Cap: ¥99.94B
• Dividend Yield: 2.05%
• Average Volume (3M): 361.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -0.16%
• EPS Growth: -802.20%
• Country: JP
• Employees: 1,838
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -44.85
• Shares Outstanding: 120,415,600
• 10 Day Avg. Volume: 399,690
• 30 Day Avg. Volume: 361,203
• 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): 24.15
• Revenue Forecast (FY): ¥49.79B

• Rating: 49 Neutral
• Price Target: ¥818.00 ▼(-14.52% Downside)

Takara Bio Inc.'s overall stock score is primarily impacted by its declining profitability and negative cash flow, which are significant concerns. The technical indicators show bearish momentum, further weighing down the score. Valuation is also a concern due to the negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage risk provides financial stability and flexibility for future investments and growth.

Consistent Cost Management

Stable gross profit margins indicate effective cost management, supporting long-term profitability despite revenue fluctuations.

Innovative Product Portfolio

A diverse and innovative product portfolio in genetic engineering and gene therapy positions the company well for future growth in biotechnology.

Negative Factors

Declining Profitability

Significant decline in profitability could impact long-term financial health and shareholder returns, necessitating operational improvements.

Negative Free Cash Flow

Negative free cash flow indicates cash outflows exceeding earnings, which may constrain investment capabilities and liquidity.

Reduced Operational Efficiency

Decreasing operational efficiency suggests potential challenges in maintaining profitability and competitiveness in the market.

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

Takara Bio Inc. demonstrates stable revenue growth and a strong balance sheet with low leverage. However, declining profitability and negative free cash flow pose challenges. The company needs to address operational inefficiencies and improve cash flow management to enhance financial health.

Income Statement

Takara Bio Inc. shows moderate revenue growth with a TTM increase of 1.72%. However, profitability has declined significantly from previous years, with a TTM net profit margin of 2.31% compared to 29.32% in 2022. Gross profit margin remains stable at around 57.88% in TTM, indicating consistent cost management. The EBIT and EBITDA margins have also decreased, reflecting reduced operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.0095 in TTM, indicating minimal leverage risk. Return on equity has decreased to 0.92% in TTM, suggesting reduced profitability for shareholders. The equity ratio remains robust, showcasing a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in TTM and a free cash flow to net income ratio of -0.65, indicating cash outflows exceeding earnings. Operating cash flow remains positive but has decreased significantly from previous periods, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.81B	45.04B	43.51B	78.14B	67.70B	46.09B
Gross Profit	26.72B	26.07B	26.91B	44.77B	49.21B	31.87B
EBITDA	6.81B	6.50B	7.90B	25.98B	31.70B	17.36B
Net Income	579.00M	1.04B	1.48B	16.01B	19.85B	9.55B
Balance Sheet
Total Assets	129.94B	125.33B	123.21B	129.20B	115.71B	90.98B
Cash, Cash Equivalents and Short-Term Investments	22.01B	29.55B	35.42B	51.85B	23.63B	25.99B
Total Debt	9.99B	1.10B	968.00M	972.00M	1.05B	1.14B
Total Liabilities	20.51B	9.48B	11.42B	16.75B	19.65B	16.68B
Stockholders Equity	109.09B	115.50B	111.50B	112.22B	95.87B	74.18B
Cash Flow
Free Cash Flow	-6.01B	-4.03B	-11.07B	31.02B	-5.55B	5.10B
Operating Cash Flow	3.22B	5.84B	1.71B	36.90B	6.99B	13.94B
Investing Cash Flow	-17.00B	-10.91B	-13.04B	-6.69B	-7.07B	-3.78B
Financing Cash Flow	-2.26B	-2.26B	-5.23B	-4.12B	-2.07B	-1.10B

Takara Bio Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 957.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 957 is above the 20-day moving average (MA) of 876.55, above the 50-day MA of 922.22, and above the 200-day MA of 861.35, indicating a bearish trend. The MACD of -33.80 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 32.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	53 Neutral	¥216.68B	―	-10.16%	―	-62.47%	-134.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4974	49 Neutral	¥99.94B	-15.66	―	2.05%	-0.16%	-802.20%
4592	48 Neutral	¥170.96B	―	-252.15%	―	―	-58.12%
2160	44 Neutral	€140.80B	-889.83	-1.81%	―	13.78%	-110.02%
4565	41 Neutral	¥77.56B	―	-9.05%	―	-1.96%	-64.18%
4593	39 Underperform	¥53.92B	―	―	―	-82.33%	47.73%

Takara Bio Inc. Corporate Events

Takara Bio Inc. Revises Financial Forecasts Amid Challenging Outlook

Takara Bio Inc. announced corrections to its financial results forecasts for the fiscal year ending March 31, 2026. The revised forecasts show a significant decrease in net sales and profits, indicating a challenging financial outlook for the company. This adjustment may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen931.00 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 Decline in Financial Performance

Takara Bio Inc. reported a decline in financial performance for the six months ending September 30, 2025, with net sales dropping by 4.9% and a significant loss in profit compared to the previous year. The company has revised its financial forecast downward, indicating challenges in maintaining profitability, which could impact its market position and stakeholder confidence.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen931.00 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. Revises Financial Forecasts and Suspends Dividends Amid Market Challenges

Takara Bio Inc. has revised its financial forecasts for the fiscal year ending March 31, 2026, due to a sluggish global life sciences market and challenges in acquiring new projects in Japan. The company anticipates a significant decline in net sales, operating profit, and net income, leading to a decision not to issue a year-end dividend. Additionally, a portion of executive remuneration will be waived to address the financial shortfall.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen931.00 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. Advances Synovial Sarcoma Treatment with New Clinical Study

Takara Bio Inc. has announced a new clinical study titled ‘Multi-center Study of TBI-1301 (INN: Mipetresgene Autoleucel; Mip-cel) in Patients With NY-ESO-1 Positive Synovial Sarcoma.’ The study aims to verify the safety and efficacy of TBI-1301, a novel treatment for synovial sarcoma expressing NY-ESO-1, following pre-treatment with cyclophosphamide and fludarabine. This research holds significant potential for advancing treatment options for this rare cancer type.

Takara Bio Revises Financial Forecasts Amid Market Downturn

Takara Bio Inc. has revised its financial forecasts for the first half of the fiscal year ending March 31, 2026, due to a global downturn in the life sciences research market and reduced research grants, particularly from the U.S. and China. The company anticipates a significant decline in net sales and profits, alongside recognizing an extraordinary loss of approximately ¥3.9 billion due to the termination of a joint development agreement and shifts in client strategies, and a reversal of deferred tax assets by ¥400 million.

The most recent analyst rating on (JP:4974) stock is a Hold with a Yen953.00 price target. To see the full list of analyst forecasts on Takara Bio Inc. stock, see the JP:4974 Stock Forecast page.