TEAR Corp. (2485) AI Stock Analysis

• Market Cap: ¥12.24B
• Dividend Yield: 4.02%
• Average Volume (3M): 102.75K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.24
• Revenue Growth: 14.46%
• EPS Growth: 18.48%
• Country: JP
• Employees: 899
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 10.09
• Shares Outstanding: 22,510,100
• 10 Day Avg. Volume: 74,460
• 30 Day Avg. Volume: 102,746
• PEG Ratio: 0.69
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 10.42
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥582.00 ▲(13.89% Upside)
• Action: Downgraded Date: 12/11/25
• Date: Action: Downgraded 12/11/25

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 (EBIT/EBITDA)

Sustained EBIT and EBITDA margins indicate the company runs a structurally efficient core business. Durable operating margins support reinvestment, cover fixed costs through cycles, and provide a buffer against revenue volatility, underpinning long-term cash generation.

Operating cash flow & FCF conversion

A positive trend in operating cash flow and healthy free-cash-flow-to-net-income conversion show the business reliably converts earnings into spendable cash. This supports dividends, capex, and debt servicing over the medium term, enhancing financial resilience.

Attractive dividend yield

A 4.1% dividend yield backed by solid cash conversion signals disciplined shareholder returns and predictable cash distribution. This tends to attract long-term income investors and can stabilize the shareholder base, benefiting capital allocation continuity.

Negative Factors

High leverage

Significant leverage raises refinancing and interest-rate risk, reducing strategic flexibility. High debt levels constrain capacity for growth investment or acquisitions, magnify earnings volatility in downturns, and increase the need to prioritize cash for debt service.

Inconsistent revenue growth

Irregular top-line growth suggests demand, market share, or product mix challenges. Persistent inconsistency hampers long-term planning, undermines scale-related margin gains, and makes forecasting cash flows and funding needs more uncertain for multi-quarter horizons.

Low net profit margin

A structurally low net margin limits retained earnings and reduces the company's capacity to self-fund growth or absorb shocks. It points to cost or pricing pressures that, if persistent, will restrict ability to deleverage or expand margins over several quarters.

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 at temples, private homes, and public places; and follow-ups according to the consultation content of the bereaved families. Tear Corporation was incorporated in 1997 and is headquartered in Nagoya, Japan.

How the Company Makes Money

TEAR Corp. Financial Statement Overview

Summary

TEAR Corp. demonstrates operational efficiency with decent EBIT and EBITDA margins. However, challenges in revenue growth and profitability, along with high leverage, pose risks. Strong cash generation is a positive, but volatility in cash flow growth needs attention.

Income Statement

TEAR Corp. shows a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin is low, indicating challenges in converting revenue into profit. The revenue growth rate has been inconsistent, with a notable decline in the most recent year. However, EBIT and EBITDA margins are decent, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. However, the company maintains a reasonable return on equity, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure.

Cash Flow

TEAR Corp.'s cash flow statement shows a positive trajectory in operating cash flow, which is crucial for sustaining operations. The free cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow growth rate has been volatile, suggesting potential challenges in maintaining consistent cash flow.

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

TEAR Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 511.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 511 is below the 20-day moving average (MA) of 533.35, below the 50-day MA of 520.74, and below the 200-day MA of 516.45, indicating a bullish trend. The MACD of 6.49 indicates Negative momentum. The RSI at 64.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7358	68 Neutral	¥14.12B	12.43	―	2.82%	7.95%	13.67%
2485	64 Neutral	¥12.24B	16.77	―	4.02%	14.46%	18.48%
7502	64 Neutral	¥1.73B	14.00	―	2.62%	11.55%	28.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2305	58 Neutral	¥33.97B	25.00	―	2.48%	-4.39%	31.40%
3041	49 Neutral	¥2.09B	-1,680.78	―	1.19%	6.83%	1654.82%
4679	47 Neutral	¥2.89B	347.83	―	―	-6.45%	99.39%