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

TEAR Corp. (2485) AI Stock Analysis

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JP

TEAR Corp.

(2485)

Rating:73Outperform
Price Target:
¥595.00
▲(13.33%Upside)
TEAR Corp.'s overall stock score is driven by strong financial performance with solid revenue growth and profitability. The stock's valuation is attractive due to its low P/E ratio and high dividend yield, enhancing its investment appeal. However, technical indicators suggest caution due to overbought signals, which could lead to short-term volatility.

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

TEAR Corp. Business Overview & Revenue Model

Company DescriptionTEAR Corp. (2485) is a Japanese company primarily engaged in the provision of funeral services. It operates in the life-ending industry, offering comprehensive services that include funeral planning, execution, and post-funeral arrangements. The company also deals with the sale of funeral-related products such as coffins, urns, and memorial goods, catering to both individual clients and institutional customers.
How the Company Makes MoneyTEAR Corp. generates revenue through its diverse range of funeral services and related product sales. The company's primary income stream is derived from offering full-service funeral arrangements, which include venue preparation, ceremony facilitation, and associated logistics. Additionally, TEAR Corp. earns from the sale of funeral products, such as caskets and memorial items, which complement its service offerings. The company may also engage in partnerships with local governments or other institutions to provide specialized or large-scale funeral services, further contributing to its revenue. Seasonal demand fluctuations and demographic changes in Japan play a significant role in influencing the company's earnings.

TEAR Corp. Financial Statement Overview

Summary
TEAR Corp. exhibits strong revenue growth and solid profitability metrics with a healthy gross profit margin and robust EBIT and EBITDA margins. The balance sheet shows manageable leverage and effective equity utilization. However, the cash flow position is weak, with zero free cash flow, indicating a need for improvement in liquidity and operational efficiency.
Income Statement
80
Positive
TEAR Corp. demonstrates strong revenue growth with a TTM revenue of ¥20.47 billion, up from ¥14.07 billion in 2023, reflecting a significant revenue growth rate. Gross profit margin is healthy at 38.92% for TTM, and net profit margin stands at 4.85%, indicating solid profitability. EBIT and EBITDA margins are also robust at 8.45% and 13.90%, respectively. However, the net profit margin can be improved further for enhanced financial performance.
Balance Sheet
75
Positive
The company's balance sheet reveals a moderate debt-to-equity ratio of 1.47, indicating manageable leverage. Return on Equity (ROE) is decent at 11.88%, showing effective utilization of equity capital. The equity ratio is 30.50%, reflecting a balanced capital structure but leaves room for improvement to strengthen financial stability.
Cash Flow
60
Neutral
Cash flow statements show challenges with free cash flow, which is currently zero in TTM. Historical free cash flow growth was strong, but maintaining positive free cash flow in the upcoming periods is crucial. Operating cash flow to net income ratio is not available for TTM, indicating potential issues in translating income to cash flow.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue20.47B18.84B14.07B13.28B12.20B11.92B
Gross Profit7.97B7.44B5.77B5.26B4.75B4.56B
EBITDA2.85B2.63B1.78B1.49B1.40B1.16B
Net Income992.00M752.00M789.00M568.00M542.00M345.00M
Balance Sheet
Total Assets27.38B27.33B15.38B14.17B13.54B13.47B
Cash, Cash Equivalents and Short-Term Investments4.25B4.29B2.94B3.08B2.87B3.06B
Total Debt12.28B12.23B2.82B2.37B2.15B2.57B
Total Liabilities19.03B19.14B7.50B6.67B4.52B4.54B
Stockholders Equity8.35B8.19B7.88B7.50B9.02B8.93B
Cash Flow
Free Cash Flow0.00799.00M-82.00M445.00M743.00M223.00M
Operating Cash Flow0.002.00B1.27B1.35B1.37B986.00M
Investing Cash Flow0.00-9.41B-1.41B-906.00M-688.00M-742.00M
Financing Cash Flow0.008.76B-2.00M-237.00M-879.00M-149.00M

TEAR Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price525.00
Price Trends
50DMA
486.16
Positive
100DMA
467.22
Positive
200DMA
446.36
Positive
Market Momentum
MACD
11.65
Negative
RSI
72.22
Negative
STOCH
88.00
Negative
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 525 is above the 20-day moving average (MA) of 508.35, above the 50-day MA of 486.16, and above the 200-day MA of 446.36, indicating a bullish trend. The MACD of 11.65 indicates Negative momentum. The RSI at 72.22 is Negative, neither overbought nor oversold. The STOCH value of 88.00 is Negative, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥32.44B6.47
3.35%42.55%101.64%
74
Outperform
¥22.83B17.47
3.09%-1.20%-30.27%
73
Outperform
¥11.82B9.43
3.81%33.96%64.42%
71
Outperform
¥5.54B6.63
3.76%1.39%31.23%
62
Neutral
$16.85B11.50-7.38%2.96%1.59%-23.36%
56
Neutral
¥2.18B7.99
3.54%-2.43%-115.41%
54
Neutral
¥2.10B
-24.95%-140.34%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2485
TEAR Corp.
530.00
88.72
20.11%
JP:2198
IKK Holdings Co., Ltd
779.00
9.04
1.17%
JP:6186
ICHIKURA Co., Ltd.
395.00
-160.56
-28.90%
JP:7040
SUN-LIFE HOLDING CO., LTD.
903.00
-127.67
-12.39%
JP:7578
Nichiryoku Co., Ltd.
121.00
-91.00
-42.92%
JP:9628
San Holdings, Inc. (Japan)
1,484.00
345.37
30.33%
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: Jul 02, 2025