TEAR Corp. (2485) AI Stock Analysis

• Market Cap: ¥13.51B
• Dividend Yield: 3.33%
• Average Volume (3M): 80.54K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.23
• Revenue Growth: 33.96%
• EPS Growth: 64.42%
• Country: JP
• Employees: 899
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Personal Products & Services
• EPS (TTM): 27.97
• Shares Outstanding: 22,510,100
• 10 Day Avg. Volume: 104,740
• 30 Day Avg. Volume: 80,536
• PEG Ratio: 0.39
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 72 Outperform
• Price Target: ¥644.00 ▲(7.33%Upside)

The stock score is primarily driven by strong financial performance and attractive valuation metrics. Technical indicators show bullish momentum but caution is warranted due to overbought signals. Cash flow challenges are a concern and need addressing to support long-term stability.

TEAR Corp. Business Overview & Revenue Model

Company Description

TEAR 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 Money

TEAR 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. shows strong revenue growth and solid profitability with healthy gross and net profit margins. The balance sheet is stable, with manageable leverage and decent ROE. However, cash flow challenges exist, particularly with zero free cash flow in the TTM, indicating potential liquidity issues.

Income Statement

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	18.84B	14.07B	13.28B	12.20B	11.92B
Gross Profit	7.44B	5.77B	5.26B	4.75B	4.56B
EBITDA	2.63B	1.78B	1.49B	1.40B	1.16B
Net Income	752.00M	789.00M	568.00M	542.00M	345.00M
Balance Sheet
Total Assets	27.33B	15.38B	14.17B	13.54B	13.47B
Cash, Cash Equivalents and Short-Term Investments	4.29B	2.94B	3.08B	2.87B	3.06B
Total Debt	12.23B	2.82B	2.37B	2.15B	2.57B
Total Liabilities	19.14B	7.50B	6.67B	4.52B	4.54B
Stockholders Equity	8.19B	7.88B	7.50B	9.02B	8.93B
Cash Flow
Free Cash Flow	799.00M	-82.00M	445.00M	743.00M	223.00M
Operating Cash Flow	2.00B	1.27B	1.35B	1.37B	986.00M
Investing Cash Flow	-9.41B	-1.41B	-906.00M	-688.00M	-742.00M
Financing Cash Flow	8.76B	-2.00M	-237.00M	-879.00M	-149.00M

TEAR Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 600 is above the 20-day moving average (MA) of 549.85, above the 50-day MA of 514.08, and above the 200-day MA of 454.47, indicating a bullish trend. The MACD of 24.03 indicates Negative momentum. The RSI at 79.05 is Negative, neither overbought nor oversold. The STOCH value of 93.74 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9628	81 Outperform	¥34.74B	6.83		2.31%	42.55%	101.64%
2198	76 Outperform	¥23.06B	17.67		3.06%	-1.20%	-30.27%
2485	72 Outperform	¥13.51B	10.69		3.33%	33.96%	64.42%
7040	71 Outperform	¥5.57B	6.65		3.61%	1.39%	31.23%
Sector *	67 Neutral	¥269.51B	13.47	6.45%	2.58%	5.22%	-11.97%
6186	61 Neutral	¥2.18B	7.99		3.54%	-2.43%	-115.41%
7578	47 Neutral	¥2.14B	―		―	-21.38%	-195.77%