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TEAR Corp. (JP:2485)
:2485
Japanese Market

TEAR Corp. (2485) AI Stock Analysis

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JP:2485

TEAR Corp.

(2485)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
¥521.00
▲(1.96% Upside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by financial volatility (sharp 2025 revenue decline) and meaningfully higher leverage, which increase risk. Technical indicators also point to weak near-term momentum. These are partly offset by a reasonable P/E and an attractive ~3.9% dividend yield.
Positive Factors
Improving cash generation
Free cash flow recovery to ~¥1.09B and OCF ~¥2.38B in 2025 shows the business can convert earnings to cash. Durable cash generation supports reinvestment, servicing liabilities, dividends, and strategic flexibility over the next several quarters despite cyclical swings.
Negative Factors
Marked increase in leverage
Total debt rising sharply to ~¥12.32B and D/E jumping to ~1.43 materially reduces financial flexibility. Higher leverage increases interest burden and refinancing risk, constraining capital allocation and heightening vulnerability if revenue recovery stalls over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Free cash flow recovery to ~¥1.09B and OCF ~¥2.38B in 2025 shows the business can convert earnings to cash. Durable cash generation supports reinvestment, servicing liabilities, dividends, and strategic flexibility over the next several quarters despite cyclical swings.
Read all positive factors

TEAR Corp. (2485) vs. iShares MSCI Japan ETF (EWJ)

TEAR Corp. Business Overview & Revenue Model

Company Description
Tear Corporation provides funeral services in Japan. The company operates funeral hall primarily in Chubu, Kansai, and Kanto districts. It also offers undertaking funerals and memorial services at the hall, as well as funeral and memorial services...

TEAR Corp. Financial Statement Overview

Summary
Mixed fundamentals: profitability and free cash flow are positive, but revenue volatility is high with a sharp 2025 contraction (-57.2%). Leverage rose materially (debt-to-equity ~1.43 in 2025), increasing financial risk and reducing flexibility if the downturn persists.
Income Statement
56
Neutral
Balance Sheet
44
Neutral
Cash Flow
52
Neutral
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue21.56B18.84B14.07B13.28B12.20B
Gross Profit8.15B7.44B5.77B5.26B4.75B
EBITDA3.07B2.63B1.78B1.49B1.40B
Net Income891.00M752.00M789.00M568.00M542.00M
Balance Sheet
Total Assets27.87B27.33B15.62B14.30B13.67B
Cash, Cash Equivalents and Short-Term Investments4.54B4.29B2.94B3.08B2.87B
Total Debt12.32B12.23B2.82B2.37B2.15B
Total Liabilities19.26B19.14B7.74B6.80B4.64B
Stockholders Equity8.60B8.19B7.88B7.50B9.02B
Cash Flow
Free Cash Flow1.09B799.00M-82.00M445.00M743.00M
Operating Cash Flow2.38B2.00B1.27B1.35B1.37B
Investing Cash Flow-1.78B-9.41B-1.41B-906.00M-688.00M
Financing Cash Flow-383.00M8.76B-2.00M-237.00M-879.00M

TEAR Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price511.00
Price Trends
50DMA
527.38
Negative
100DMA
510.65
Positive
200DMA
520.95
Positive
Market Momentum
MACD
-2.42
Positive
RSI
49.36
Neutral
STOCH
32.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2485, the sentiment is Positive. The current price of 511 is below the 20-day moving average (MA) of 527.00, below the 50-day MA of 527.38, and below the 200-day MA of 520.95, indicating a neutral trend. The MACD of -2.42 indicates Positive momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2485.

TEAR Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥14.07B12.082.82%7.95%13.67%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
¥33.37B5.662.48%-4.39%31.40%
58
Neutral
¥1.73B12.622.62%11.55%28.89%
53
Neutral
¥11.82B12.724.02%14.46%18.48%
49
Neutral
¥2.17B42.211.19%6.83%1654.82%
47
Neutral
¥2.51B11.92-6.45%99.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2485
TEAR Corp.
525.00
76.79
17.13%
JP:2305
Studio Alice Co., Ltd.
1,965.00
-87.84
-4.28%
JP:3041
Beauty Kadan Holdings Co. Ltd.
536.00
175.65
48.74%
JP:4679
TAYA Co.,Ltd.
337.00
10.00
3.06%
JP:7358
Poppins Corporation
1,451.00
278.27
23.73%
JP:7502
PLAZA HOLDINGS CO.,LTD.
1,834.00
-41.00
-2.19%
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: Mar 24, 2026