TEAR Corp. (2485) AI Stock Analysis

• Market Cap: ¥10.96B
• Dividend Yield: 4.11%
• Average Volume (3M): 102.75K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.25
• Revenue Growth: 14.46%
• EPS Growth: 18.49%
• Country: JP
• Employees: 899
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -10.65
• Shares Outstanding: 22,510,100
• 10 Day Avg. Volume: 74,460
• 30 Day Avg. Volume: 102,746
• PEG Ratio: -2.83
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 12.83
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥522.00 ▲(6.75% Upside)

TEAR Corp.'s overall stock score reflects a balance of strengths and risks. The company's reasonable valuation and attractive dividend yield are significant positives. However, financial performance concerns, particularly in revenue growth and leverage, along with bearish technical indicators, weigh on the score.

Positive Factors

Operational Efficiency

Operational efficiency with strong EBIT and EBITDA margins indicates effective management and cost control, supporting long-term profitability.

Cash Generation

Strong cash generation supports the company's ability to fund operations and invest in growth, enhancing financial stability over time.

Return on Equity

A reasonable return on equity indicates efficient capital use, which can drive shareholder value and support long-term growth.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder the company's ability to scale and compete, impacting long-term market position and profitability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Volatile Cash Flow Growth

Volatile cash flow growth can lead to financial instability, making it challenging to plan for long-term investments and operational needs.

TEAR Corp. Business Overview & Revenue Model

Company Description

How the Company Makes Money

TEAR Corp. Financial Statement Overview

Summary

TEAR Corp. demonstrates strong revenue growth and operational efficiency with healthy profit margins. The balance sheet is stable, though the increase in debt warrants attention. Cash flow has improved significantly, enhancing financial flexibility. Continued focus on managing leverage and optimizing cash flow is crucial for sustaining growth.

Income Statement

TEAR Corp. has demonstrated strong revenue growth with a 33.9% increase from the previous year, indicating robust demand for its products. The gross profit margin stands at 39.5%, reflecting efficient cost management. The net profit margin is 4.0%, which is moderate but shows room for improvement. EBIT and EBITDA margins are healthy at 7.6% and 14.0%, respectively, indicating strong operational efficiency.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 1.49, suggesting a moderate level of leverage. The return on equity is 9.2%, indicating effective use of equity capital. The equity ratio is 30.0%, reflecting a solid equity base, though there is a noticeable increase in total debt, which could pose a risk if not managed carefully.

Cash Flow

TEAR Corp. has shown a significant improvement in free cash flow, turning positive from a deficit last year, with a free cash flow growth rate of 1074.4%. The operating cash flow to net income ratio is 2.66, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 1.06, which is modest and suggests potential for further cash flow optimization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.69B	21.56B	18.84B	14.07B	13.28B	12.20B
Gross Profit	8.42B	8.15B	7.44B	5.77B	5.26B	4.75B
EBITDA	3.37B	3.07B	2.63B	1.78B	1.49B	1.40B
Net Income	1.21B	891.00M	752.00M	789.00M	568.00M	542.00M
Balance Sheet
Total Assets	27.94B	27.87B	27.33B	15.38B	14.17B	13.54B
Cash, Cash Equivalents and Short-Term Investments	5.21B	4.54B	4.29B	2.94B	3.08B	2.87B
Total Debt	12.04B	12.32B	12.23B	2.82B	2.37B	2.15B
Total Liabilities	19.15B	19.26B	19.14B	7.50B	6.67B	4.52B
Stockholders Equity	8.79B	8.60B	8.19B	7.88B	7.50B	9.02B
Cash Flow
Free Cash Flow	0.00	1.09B	799.00M	-82.00M	445.00M	743.00M
Operating Cash Flow	0.00	2.38B	2.00B	1.27B	1.35B	1.37B
Investing Cash Flow	0.00	-1.78B	-9.41B	-1.41B	-906.00M	-688.00M
Financing Cash Flow	0.00	-383.00M	8.76B	-2.00M	-237.00M	-879.00M

TEAR Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 489.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2485, the sentiment is Negative. The current price of 489 is above the 20-day moving average (MA) of 486.60, below the 50-day MA of 493.64, and below the 200-day MA of 496.40, indicating a neutral trend. The MACD of -1.59 indicates Negative momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2485.

TEAR Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2198	71 Outperform	¥22.80B	11.42	―	3.09%	-3.47%	14.42%
9628	71 Outperform	¥29.75B	6.01	―	2.70%	68.12%	110.52%
7040	71 Outperform	¥5.80B	6.88	―	3.48%	3.40%	-25.64%
2485	64 Neutral	¥10.96B	12.30	―	4.11%	14.46%	18.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	54 Neutral	¥2.07B	-53.42	―	3.73%	-2.06%	-109.18%
7578	44 Neutral	¥2.03B	3.99	―	―	-15.38%	―