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Tauns Laboratories, Inc. (197A) AI Stock Analysis

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JP:197A

Tauns Laboratories, Inc.

(TSE/TYO:197A)

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Rating:70Outperform
Price Target:JPY 547.00â–²(11.41% Upside)
Action:reiterated
Date:08/19/26

The score is primarily supported by attractive valuation (low P/E and high dividend yield) and generally positive technical momentum. These positives are balanced by financial-performance risks, especially volatile cash generation (negative in 2026) alongside materially higher leverage, which increases sensitivity to any earnings or working-capital swings.

Positive Factors
Strong ProfitabilitySustained gross and operating profitability, together with a substantially higher net margin, indicates strong earnings capacity. This provides internal funding potential and resilience, although operating-margin trends should continue to be monitored.
Negative Factors
Volatile Cash GenerationRepeated swings between positive and negative operating cash flow weaken earnings quality and make funding needs harder to predict. If volatility persists, the company may rely more heavily on debt or working-capital management.

Tauns Laboratories, Inc. (197A) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:197A-7.52%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 52.45B
Dividend Yield
5.70%
Average Volume (3M)
225.56K
Price to Earnings (P/E)
9.4
Beta (1Y)
0.39
Revenue Growth
-22.86%
EPS Growth
-16.43%
Country
Japan
Employees
271
Sector
General
Sector Strength
55
Industry
Medical - Specialties

Tauns Laboratories, Inc. Business Overview & Revenue Model

Company Description

TAUNS Laboratories, Inc. is a company dedicated to the creation and production of in-vitro diagnostic pharmaceuticals and various types of measuring equipment. Additionally, the firm facilitates the international trade (import and export) of an exten...

Tauns Laboratories, Inc. Financial Statement Overview

Summary

Strong reported profitability and improving net margin support the score, but it is materially offset by deteriorating/volatile cash flow (negative operating and free cash flow in 2026) and a sharp rise in leverage (debt-to-equity above 1.0 in 2026), which increases funding and earnings-quality risk.

Income Statement

78Positive

Balance Sheet

60Neutral

Cash Flow

35Negative
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue14.37B14.37B18.63B18.43B15.67B17.46B
Gross Profit8.82B8.22B12.33B12.50B8.79B14.29B
EBITDA5.33B5.33B9.02B8.65B5.32B8.55B
Net Income5.50B5.50B6.32B5.77B3.03B4.48B
Balance Sheet
Total Assets44.62B44.62B36.52B29.26B18.81B20.88B
Cash, Cash Equivalents and Short-Term Investments3.56B3.56B9.27B9.42B1.24B6.35B
Total Debt21.26B21.26B14.42B9.54B6.47B4.90B
Total Liabilities25.20B25.20B19.10B15.59B10.32B13.52B
Stockholders Equity19.42B19.42B17.42B13.67B8.49B7.36B
Cash Flow
Free Cash Flow0-6.61B2.14B5.97B-4.32B8.39B
Operating Cash Flow0-2.83B6.82B9.94B-3.16B10.69B
Investing Cash Flow0-6.18B-9.26B-4.11B-1.62B-2.68B
Financing Cash Flow03.30B2.28B2.36B-330.20M-3.66B

Tauns Laboratories, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price491.00

Price Trends

50DMA508.60Negative
100DMA490.86Positive
200DMA496.36Negative

Market Momentum

MACD-4.69Positive
RSI34.09Neutral
STOCH17.03Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:197A, the sentiment is Negative. The current price of 491.00 is below the 20-day moving average (MA) of 507.25, below the 50-day MA of 508.60, and below the 200-day MA of 496.36, indicating a bearish trend. The MACD of -4.69 indicates Positive momentum. The RSI at 34.09 is Neutral, neither overbought nor oversold. The STOCH value of 17.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:197A.

Tauns Laboratories, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:197A against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:197AJP:197A70OutperformJPY 52.45B9.37―5.70%-22.86%-16.43%
JP:2395JP:239563NeutralJPY 62.70B11.67―3.32%1.72%6.07%
JP:4549JP:454957NeutralJPY 76.06B41.05―2.51%3.92%-52.01%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4552JP:455252NeutralJPY 67.32B-19.55―3.68%3.05%-67.53%
JP:4569JP:456952NeutralJPY 58.17B29.23―4.25%-4.71%-78.91%

* General Sector Average

Performance Comparison

-20%0%20%40%JP:197AJP:2395JP:4549JP:4552JP:4569JP:368ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:197A and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:197ATauns Laboratories, Inc.491.00-33.33-6.36%
JP:2395Shin Nippon Biomedical Laboratories, Ltd.1506.0099.207.05%
JP:4549Eiken Chemical Co., Ltd.2307.003.990.17%
JP:4552JCR Pharmaceuticals Co., Ltd.544.00-32.54-5.64%
JP:4569KYORIN Pharmaceutical Co.,Ltd.1105.00-256.96-18.87%
JP:368AKitazato Corporation1284.00-35.03-2.66%

Tauns Laboratories, Inc. Corporate Events

Tauns Laboratories’ Profit Slides on Lower Sales as Cash Flow Turns Negative

Aug 13, 2026

Tauns Laboratories reported FY2026 net sales of ¥14.37 billion, down 22.9% year on year, with operating income halving to ¥4.20 billion and ordinary income falling 51.9%, while net income declined a milder 13% to ¥5.50 billion as profi...

Tauns Laboratories Books ¥3.9 Billion Government Subsidy as Special Gain

Aug 13, 2026

Tauns Laboratories has booked a special gain of ¥3,949 million in the fourth quarter of the fiscal year ending June 30, 2026, after receiving final approval for a government subsidy under Japan’s “Subsidy Program for Promoting Domest...

Tauns Laboratories Corrects Presentation of Operating Income Forecast Without Changing Outlook

Jul 24, 2026

Tauns Laboratories has issued a correction to its recently updated mid-term management plan, clarifying the way it presents its full-year operating income forecast for the fiscal year ending June 30, 2026. The company confirmed that the forecast rema...

Tauns Laboratories Revamps Mid-Term Plan With Strong Growth Targets

Jul 15, 2026

Tauns Laboratories has updated its mid-term management plan, shifting the covered period to the fiscal years ending June 2027 through June 2031 in response to changes in the business environment and the progress of its existing strategy. The new plan...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026