Scienture Holdings (SCNX) AI Stock Analysis

• Market Cap: $11.51M
• Dividend Yield: N/A
• Average Volume (3M): 181.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: -98.47%
• EPS Growth: 45.84%
• Country: US
• Employees: 14
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -11.60
• Shares Outstanding: 12,515,019
• 10 Day Avg. Volume: 61,624
• 30 Day Avg. Volume: 181,244
• PEG Ratio: <0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.82
• 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

Scienture Holdings struggles with significant financial instability, marked by profitability and cash flow constraints, which are critical factors impacting its stock score. The technical analysis further indicates a bearish trend, while valuation metrics suggest possible overvaluation due to a negative P/E ratio. Despite positive recent corporate events aimed at restructuring and growth, the overall stock score remains low due to the prevailing financial and technical challenges.

Scienture Holdings Business Overview & Revenue Model

Company Description

TRxADE HEALTH, Inc. operates as health services IT company. It offers an online web-based buying and selling platform for licensed pharmaceutical wholesalers to sell brand, generic, and non-drug products and services to government organizations, hospitals, clinics and independent pharmacies. TRxADE HEALTH, Inc. is headquartered in Tampa, Florida.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
136.64K	1.36M	10.25M	9.89M	17.12M
	Gross Profit
6.00K	49.03K	5.52M	4.75M	5.71M
	EBIT
-14.70M	-4.40M	-2.92M	-5.29M	-2.51M
	EBITDA
-17.39M	-6.29M	-1.87M	-5.15M	-2.40M
	Net Income Common Stockholders
9.07M	-17.84M	-3.47M	-5.32M	-2.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
308.10K	314.00	1.09M	3.12M	5.92M
	Total Assets
104.85M	12.53M	3.71M	5.77M	9.79M
	Total Debt
3.53M	6.76M	1.58M	1.25M	627.46K
	Net Debt
3.22M	6.76M	489.01K	-1.87M	-5.29M
	Total Liabilities
25.78M	11.99M	3.37M	2.00M	1.11M
	Stockholders Equity
79.07M	542.35K	763.14K	3.77M	8.68M
Cash Flow		Free Cash Flow
-14.27M	-2.23M	-1.56M	-2.59M	-2.25M
	Operating Cash Flow
-14.27M	-2.23M	-1.56M	-2.57M	-2.21M
	Investing Cash Flow
27.55M	-275.72K	-427.85K	-22.60K	-37.51K
	Financing Cash Flow
-12.98M	1.41M	-35.17K	-208.18K	5.30M

Scienture Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.94 is above the 20-day moving average (MA) of 0.92, below the 50-day MA of 1.29, and below the 200-day MA of 5.30, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 58.14 is Neutral, 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	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%
CRIS	44 Neutral	$20.51M	―	-2951.24%	―	14.17%	28.26%
LFWD	43 Neutral	$14.46M	―	-88.56%	―	85.24%	-27.93%
IXHL	39 Underperform	$3.13M	―	-240.02%	―	―	―
ALUR	37 Underperform	$17.75M	―	38.80%	―	-18.49%	91.09%
UBX	31 Underperform	$15.53M	―	-231.27%	―	―	35.08%
SCNX	27 Underperform	$11.51M	―	-45.84%	―	-98.47%	45.84%

Scienture Holdings Corporate Events

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.

Spark’s Take on SCNX Stock

According to Spark, TipRanks’ AI Analyst, SCNX is a Underperform.

Scienture Holdings faces notable financial challenges, including profitability and cash flow constraints, impacting its overall stock score. The stock’s downward technical trend and valuation concerns due to a negative P/E ratio further weigh on the score. Despite positive corporate events, the financial instability and technical weakness remain significant risks.

To see Spark’s full report on SCNX stock, click here.

Scienture Holdings Announces FDA Approval for ArbliTM

On March 17, 2025, Scienture Holdings, Inc. entered into a consulting agreement with Draper, Inc. to enhance its investor relations and business development, agreeing to pay Draper in restricted shares. The agreement aims to support Scienture’s financial strategies and market positioning. Additionally, on March 18, 2025, Scienture announced FDA approval for ArbliTM, a novel oral liquid formulation of losartan potassium, marking a significant milestone as it is the first FDA-approved liquid losartan in the U.S. This product targets hypertension and related conditions, offering a convenient alternative to existing solid formulations, and is expected to launch commercially in Q3 2025.

Scienture Holdings Appoints New CFO Eric Sherb

On March 13, 2025, Scienture Holdings appointed Eric Sherb as the new Chief Financial Officer, succeeding Prashant Patel, who will continue as President and COO. This strategic move is expected to enhance the company’s financial operations with Sherb’s extensive experience. Additionally, during the 2024 Annual Meeting held on March 10, 2025, stockholders voted on key proposals including the election of directors and ratification of the appointment of CM3 Advisory as the independent accounting firm, reflecting strong shareholder engagement and governance practices.

Scienture Holdings Secures Exclusive Naloxone Agreement

On March 4, 2025, Scienture Holdings, Inc. entered into an Exclusive Commercial and Supply Agreement with Summit Biosciences Inc., a subsidiary of Kindeva Drug Delivery L.P., granting Scienture exclusive rights to commercialize REZENOPY® (Naloxone HCl Nasal Spray 10mg) in the United States. This agreement allows Scienture to price, launch, and market the product, which is intended to combat opioid overdoses. The collaboration with Kindeva, which will handle manufacturing, aligns with Scienture’s mission to provide innovative treatment solutions and represents a strategic step in advancing public health initiatives. The agreement includes a joint steering committee to oversee activities and requires Scienture to make milestone and profit-sharing payments to Kindeva.