TEAR Corp. (2485) AI Stock Analysis

• Market Cap: ¥11.73B
• Dividend Yield: 4.02%
• Average Volume (3M): 102.75K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.25
• Revenue Growth: 14.46%
• EPS Growth: 18.48%
• Country: JP
• Employees: 899
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -10.65
• 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: ¥522.00 ▲(2.15% 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

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	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: Positive
• Last Price: 511.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 511 is below the 20-day moving average (MA) of 518.75, above the 50-day MA of 503.82, and above the 200-day MA of 508.38, indicating a bullish trend. The MACD of 5.55 indicates Positive momentum. The RSI at 65.39 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7040	75 Outperform	¥6.31B	7.49	―	3.47%	3.40%	-25.64%
2198	71 Outperform	¥23.47B	11.75	―	3.04%	-3.47%	14.42%
9628	71 Outperform	¥36.36B	6.42	―	2.61%	68.12%	110.52%
2485	64 Neutral	¥11.73B	13.16	―	4.02%	14.46%	18.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	61 Neutral	¥2.19B	-54.84	―	3.76%	-2.06%	-109.18%
7578	44 Neutral	¥2.10B	4.20	―	―	-15.38%	―