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TEAR Corp. (JP:2485)
:2485
Japanese Market
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TEAR Corp. (2485) AI Stock Analysis

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JP:2485

TEAR Corp.

(2485)

Rating:81Outperform
Price Target:
¥681.00
▲(27.05% Upside)
TEAR Corp. scores highly due to strong financial performance and technical indicators. The stock is supported by robust revenue growth, operational efficiency, and positive cash flow trends. Technical analysis shows bullish momentum, and the valuation is attractive with a reasonable P/E ratio and solid dividend yield.

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

TEAR Corp. Business Overview & Revenue Model

Company DescriptionTEAR Corp. (2485) is a leading technology company specializing in innovative software solutions and digital transformation services. Operating primarily in the information technology sector, TEAR Corp. develops cutting-edge applications, cloud services, and cybersecurity solutions aimed at enhancing business efficiency and security. With a diverse portfolio that includes enterprise software, data analytics, and IT consulting, the company serves a wide range of industries including finance, healthcare, and manufacturing.
How the Company Makes MoneyTEAR Corp. generates revenue through multiple streams, primarily from software licensing, subscription services, and consulting fees. The company offers its software products on a subscription basis, allowing clients to access continuous updates and support, which creates a steady stream of recurring revenue. Additionally, TEAR Corp. provides customized IT consulting services, charging clients for tailored solutions and implementation support. Significant partnerships with major cloud service providers enhance its offerings, allowing the company to bundle services effectively and attract larger clients. Furthermore, the demand for cybersecurity solutions has surged, contributing to increased sales in this sector, thereby bolstering overall revenue.

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.
Income Statement
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.29B18.84B14.07B13.28B12.20B11.92B
Gross Profit8.28B7.44B5.77B5.26B4.75B4.56B
EBITDA3.37B2.63B1.78B1.49B1.40B1.16B
Net Income1.25B752.00M789.00M568.00M542.00M345.00M
Balance Sheet
Total Assets28.20B27.33B15.38B14.17B13.54B13.47B
Cash, Cash Equivalents and Short-Term Investments5.21B4.29B2.94B3.08B2.87B3.06B
Total Debt11.84B12.23B2.82B2.37B2.15B2.57B
Total Liabilities19.21B19.14B7.50B6.67B4.52B4.54B
Stockholders Equity8.98B8.19B7.88B7.50B9.02B8.93B
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
Neutral
Last Price536.00
Price Trends
50DMA
570.38
Negative
100DMA
523.83
Positive
200DMA
478.51
Positive
Market Momentum
MACD
-12.37
Positive
RSI
30.51
Neutral
STOCH
16.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2485, the sentiment is Neutral. The current price of 536 is below the 20-day moving average (MA) of 568.25, below the 50-day MA of 570.38, and above the 200-day MA of 478.51, indicating a neutral trend. The MACD of -12.37 indicates Positive momentum. The RSI at 30.51 is Neutral, neither overbought nor oversold. The STOCH value of 16.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2485.

TEAR Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥12.09B9.98
3.73%25.26%65.66%
76
Outperform
¥23.59B18.06
2.98%-1.20%-30.27%
72
Outperform
¥31.64B6.28
2.55%55.72%97.54%
71
Outperform
¥5.93B7.09
3.43%2.08%-30.72%
61
Neutral
$17.99B12.87-3.58%2.97%1.27%-14.28%
56
Neutral
¥2.19B7.99
3.54%-2.89%-144.95%
42
Neutral
¥2.12B
-18.74%-1062.47%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2485
TEAR Corp.
536.00
103.34
23.88%
JP:2198
IKK Holdings Co., Ltd
806.00
66.06
8.93%
JP:6186
ICHIKURA Co., Ltd.
396.00
-126.70
-24.24%
JP:7040
SUN-LIFE HOLDING CO., LTD.
961.00
-10.69
-1.10%
JP:7578
Nichiryoku Co., Ltd.
123.00
-23.00
-15.75%
JP:9628
San Holdings, Inc. (Japan)
1,449.00
315.58
27.84%
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 28, 2025