Tsubota Laboratory Incorporated (4890) AI Stock Analysis

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Tsubota Laboratory Incorporated

(TSE/TYO:4890)

Select Model

Rating:38Underperform

Price Target:JPY 204.00▼(-5.99% Downside)

Action:reiterated

Date:10/25/26

Tsubota Laboratory faces critical headwinds, reflected in an exceptionally weak overall score. The collapse in revenue, massive operating losses, and accelerating cash burn severely impair its financial foundation. Compounded by deeply negative valuation metrics and bearish technical momentum, the stock carries substantial downside risk, mitigated only slightly by a conservative debt profile.

Positive Factors

Low financial leverageThe conservative capital structure gives Tsubota Laboratory a meaningful equity cushion while operations fluctuate. Low leverage reduces fixed financing pressure and preserves greater flexibility to fund ophthalmology development or withstand continued earnings volatility.

Negative Factors

Severe revenue contractionThe extreme 2026 revenue decline signals substantial instability in the company’s commercial performance. Such a contraction weakens operating absorption, reduces resources available for development, and makes near-term recovery dependent on rebuilding demand or commercialization.

Tsubota Laboratory Incorporated (4890) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.60B
Dividend Yield: ―
Average Volume (3M): 39.45K
Price to Earnings (P/E): -7.7
Beta (1Y): 0.33
Revenue Growth: -39.46%
EPS Growth: -317.84%
Country: Japan
Employees: 22
Sector: Healthcare
Sector Strength: 51
Industry: Specialty Business Services

Tsubota Laboratory Incorporated Business Overview & Revenue Model

Company Description

Operating from Tokyo, Japan since its establishment in 2012, Tsubota Laboratory Incorporated is dedicated to the research and development of pharmaceutical products and medical devices, specifically targeting the treatment of myopia, dry eyes, and pr...

How the Company Makes Money

The company primarily makes money by commercializing ophthalmology-related offerings, which typically includes monetization from product and/or service sales tied to eye-care solutions and potentially revenues associated with research and development...

Tsubota Laboratory Incorporated Financial Statement Overview

Summary

Severe financial deterioration is evident with revenue plummeting 85.3% and net income swinging to a massive 761 million loss. Despite a negligible debt burden, accelerating cash burn and deeply negative cash flows present substantial liquidity risks.

Income Statement

15Very Negative

Balance Sheet

55Neutral

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	390.58M	200.02M	1.36B	673.53M	954.69M	640.92M
Gross Profit	148.27M	131.57M	1.15B	-9.48M	686.83M	528.76M
EBITDA	-720.42M	-765.24M	262.46M	-609.24M	206.22M	173.87M
Net Income	-693.63M	-761.82M	205.77M	-641.32M	90.18M	153.32M
Balance Sheet
Total Assets	1.31B	1.32B	2.50B	2.30B	2.67B	1.62B
Cash, Cash Equivalents and Short-Term Investments	699.26M	969.85M	1.54B	1.88B	2.16B	1.17B
Total Debt	63.64M	69.21M	90.38M	116.90M	139.34M	223.82M
Total Liabilities	578.57M	454.92M	915.85M	927.93M	722.59M	873.44M
Stockholders Equity	733.83M	863.86M	1.59B	1.37B	1.95B	744.35M
Cash Flow
Free Cash Flow	0	-586.61M	-331.75M	-313.35M	-15.27M	582.69M
Operating Cash Flow	0	-577.83M	-317.75M	-301.35M	28.49M	654.91M
Investing Cash Flow	0	-8.41M	-14.55M	-12.00M	-54.03M	-72.23M
Financing Cash Flow	0	17.23M	-12.25M	35.74M	1.01B	-18.53M

Tsubota Laboratory Incorporated Technical Analysis

Technical Analysis SentimentNegative

Last Price217.00

Price Trends

50DMA257.56Negative

100DMA253.60Negative

200DMA273.69Negative

Market Momentum

MACD-9.53Positive

RSI32.90Neutral

STOCH28.24Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4890, the sentiment is Negative. The current price of 217.00 is below the 20-day moving average (MA) of 242.50, below the 50-day MA of 257.56, and below the 200-day MA of 273.69, indicating a bearish trend. The MACD of -9.53 indicates Positive momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4890.

Tsubota Laboratory Incorporated Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:4890 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3391	81Outperform	JPY 1.12T	19.58	7.13%	1.88%	―	―
JP:7649	69Neutral	JPY 532.23B	17.51	9.94%	1.24%	8.97%	-29.54%
JP:9989	69Neutral	JPY 455.53B	14.53	11.15%	3.36%	3.99%	-0.48%
JP:3349	60Neutral	JPY 505.70B	15.88	―	1.27%	8.99%	3.61%
JP:3549	59Neutral	JPY 482.38B	25.45	―	0.29%	12.54%	15.87%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4890	38Underperform	JPY 5.79B	-7.74	―	―	-39.46%	-317.84%

* Healthcare Sector Average

Performance Comparison

JP:4890 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4890	Tsubota Laboratory Incorporated	217.00	-127.00	-36.92%
JP:9989	Sundrug Co	3924.00	-187.45	-4.56%
JP:7649	Sugi Holdings Co	1416.50	-292.70	-17.12%
JP:3391	TSURUHA Holdings	2500.00	-202.22	-7.48%
JP:3349	COSMOS Pharmaceutical Corporation	6437.00	-929.03	-12.61%
JP:3549	KUSURI NO AOKI HOLDINGS CO.,LTD.	5073.00	1236.35	32.22%

Tsubota Laboratory Incorporated Corporate Events

Tsubota Laboratory Reports ¥491 Million Six-Month Revenue and Operating Loss

Nov 12, 2026

Tsubota Laboratory Incorporated, listed on the Tokyo Stock Exchange under code 4890, reported consolidated revenue of ¥491 million for the six months ended September 30, 2026, alongside an operating loss of ¥331 million, an ordinary loss of ¥294 mill...

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: Oct 25, 2026

Tsubota Laboratory Incorporated AI Stock Analysis