Scienture Holdings (SCNX) AI Stock Analysis

• Market Cap: $21.25M
• Dividend Yield: N/A
• Average Volume (3M): 132.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.55
• Revenue Growth: -97.79%
• EPS Growth: 86.73%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -11.60
• Shares Outstanding: 13,116,429
• 10 Day Avg. Volume: 177,777
• 30 Day Avg. Volume: 132,153
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 4.17
• Enterprise Value/Gross Profit: 3.43K
• Enterprise Value/Ebitda: -0.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $1.50 ▼(-7.41%Downside)

Scienture Holdings faces significant financial challenges and valuation concerns, with technical indicators showing potential resistance despite bullish momentum. Leadership changes and compliance issues further add to the risks, making it crucial for the company to stabilize its financials and improve operational efficiency to enhance investor confidence.

Scienture Holdings Business Overview & Revenue Model

Company Description

Scienture Holdings (SCNX) is a diversified conglomerate operating across multiple sectors, including technology, healthcare, and renewable energy. The company focuses on developing innovative solutions and services that cater to the evolving needs of its global clientele. With a strong emphasis on sustainability and cutting-edge research, Scienture Holdings has positioned itself as a leader in providing advanced technological products and comprehensive healthcare solutions.

How the Company Makes Money

Scienture Holdings generates revenue through a multi-pronged approach. In the technology sector, the company earns income by selling proprietary software and hardware solutions to businesses and consumers. In healthcare, revenue streams include the sale of medical devices and pharmaceuticals, as well as offering healthcare services through a network of clinics and partnerships with healthcare providers. Additionally, the company's investments in renewable energy projects contribute to its earnings by selling clean energy to utilities and industrial clients. Strategic partnerships with leading firms in each sector enhance its market reach and revenue potential, while continuous investment in research and development ensures the introduction of new products and services to the market.

Scienture Holdings Financial Statement Overview

Summary

Scienture Holdings is facing significant financial challenges, with profitability and cash flow constraints weighing on performance. While recent improvements in net income and equity ratio are encouraging, the company needs to address revenue volatility and cash flow issues to achieve sustainable growth. High leverage remains a potential risk that could impact financial flexibility.

Income Statement

Scienture Holdings has faced significant challenges in maintaining profitability as indicated by a consistently negative EBIT and EBITDA. The net profit margin has been volatile, with a recent return to positive net income in 2024, which is a positive sign. However, the revenue growth rate has been inconsistent, showing a significant drop in 2023 before recovering slightly in 2024, reflecting potential instability in revenue streams.

Balance Sheet

The company's balance sheet displays high leverage with a debt-to-equity ratio that indicates a significant amount of debt relative to equity. However, the equity ratio has improved recently, suggesting a better capitalization structure. Return on equity remains concerning due to historically negative net income, though recent improvements are promising.

Cash Flow

Scienture Holdings exhibits strained cash flows with persistent negative free cash flow and operating cash flow over the years. There is a high reliance on financing activities to support operations, which could pose risks. The free cash flow growth rate has been negative, indicating challenges in generating sufficient cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.90K	136.64K	1.36M	10.25M	9.89M	17.12M
Gross Profit	6.68K	6.00K	49.03K	5.52M	4.75M	5.71M
EBITDA	-13.24M	-17.39M	-6.29M	-1.87M	-5.15M	-2.40M
Net Income	-15.24M	9.07M	-17.84M	-3.47M	-5.32M	-2.54M
Balance Sheet
Total Assets	106.36M	104.85M	12.53M	3.71M	5.77M	9.79M
Cash, Cash Equivalents and Short-Term Investments	2.05M	308.10K	314.00	1.09M	3.12M	5.92M
Total Debt	3.81M	3.53M	6.76M	1.58M	1.25M	627.46K
Total Liabilities	25.20M	25.78M	11.99M	3.37M	2.00M	1.11M
Stockholders Equity	81.16M	79.07M	542.35K	763.14K	3.77M	8.68M
Cash Flow
Free Cash Flow	-7.03M	-14.27M	-2.23M	-1.56M	-2.59M	-2.25M
Operating Cash Flow	-7.03M	-14.27M	-2.23M	-1.56M	-2.57M	-2.21M
Investing Cash Flow	120.20K	27.55M	-275.72K	-427.85K	-22.60K	-37.51K
Financing Cash Flow	5.61M	-12.98M	1.41M	-35.17K	-208.18K	5.30M

Scienture Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCNX, the sentiment is Neutral. The current price of 1.62 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.01, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 76.32 is Negative, neither overbought nor oversold. The STOCH value of 89.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCNX.

Scienture Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$7.45B	0.30	-61.93%	2.28%	16.62%	1.04%
ALUR	47 Neutral	$18.87M	―	38.80%	―	-41.98%	88.34%
ALUR	47 Neutral	$18.87M	―	38.80%	―	-41.98%	88.34%
CRIS	44 Neutral	$20.88M	―	-2951.24%	―	14.17%	28.26%
CRIS	44 Neutral	$20.88M	―	-2951.24%	―	14.17%	28.26%
LFWD	43 Neutral	$10.34M	―	-93.11%	―	85.24%	-27.93%
IXHL	39 Underperform	$19.70M	―	-201.88%	―	―	―
SCNX	39 Underperform	$21.25M	―	-30.97%	―	-97.79%	86.73%
UBX	31 Underperform	$5.17M	―	-231.27%	―	―	35.08%

Scienture Holdings Corporate Events

Scienture Holdings Secures Indemnification for Leadership

On June 27, 2025, Scienture Holdings, Inc. entered into an Indemnification Agreement with its directors and officers, including Mayur Doshi, Donald Fell, Shankar Hariharan, Subbarao Jayanthi, and Narasimhan Mani. This agreement ensures protection for these individuals by indemnifying them against expenses incurred in legal proceedings related to their corporate roles, and it includes provisions for insurance coverage. These agreements are part of Scienture Holdings’ efforts to safeguard its leadership, potentially enhancing the company’s stability and attractiveness to stakeholders.

Scienture Holdings Terminates Agreement with Arena Business

On May 22, 2025, Scienture Holdings terminated a purchase agreement with Arena Business Solutions Global SPC II, Ltd., without incurring any fees. Additionally, the company received a notice from Nasdaq on May 19, 2025, for non-compliance with the minimum bid price requirement, giving it until November 17, 2025, to rectify the situation. On May 16, 2025, CEO Suren Ajjarapu resigned, followed by President Prashant Patel on May 20, 2025. Dr. Narasimhan Mani and Dr. Shankar Hariharan were appointed as co-CEOs, with Dr. Mani also serving as President. These leadership changes are part of a planned transition.

Scienture Holdings Divests Subsidiaries to Tollo Health

On April 8, 2025, Scienture Holdings, Inc. announced its strategic divestiture of legacy subsidiaries Integra Pharmacy Solutions LLC, Bonum Health, Inc., and Softell, Inc. to Tollo Health, Inc. for $5 million. This move is part of a broader realignment to focus on its Branded and Specialty Pharma segment through Scienture, LLC. The divestiture aims to streamline operations, enhance efficiency, and dedicate resources to high-value product development, aligning with the company’s long-term growth strategy.