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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)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
¥471.00
▼(-7.83% Downside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by financial performance risk: a severe 2025 revenue decline and materially higher leverage reduce durability and balance-sheet flexibility. Technicals are neutral with no strong trend, and valuation is mixed—higher P/E tempered by an attractive dividend yield.
Positive Factors
Improving cash generation
Free cash flow turned positive in 2025 and operating cash increased meaningfully, indicating the firm can fund operations, dividends or debt service internally. Sustained positive FCF improves durability versus firms reliant on external financing and supports strategic flexibility.
Negative Factors
Severe 2025 revenue decline
A greater-than-50% revenue drop in 2025 shows acute demand or execution problems; such volatility undermines forecasting, reduces operating leverage and may force structural cost cuts. Persistent revenue weakness would impair margin sustainability and strategic investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Free cash flow turned positive in 2025 and operating cash increased meaningfully, indicating the firm can fund operations, dividends or debt service internally. Sustained positive FCF improves durability versus firms reliant on external financing and supports strategic flexibility.
Read all positive factors

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

TEAR Corp. Business Overview & Revenue Model

Company Description
Tear Corporation provides funeral services in Japan. The company operates funeral hall. It accepts funerals and legal services at homes, temples, etc., as well as provides funeral-related services. The company also provides post-funeral follow-up ...

TEAR Corp. Financial Statement Overview

Summary
Financials are mixed. Income statement shows meaningful volatility with a sharp 2025 revenue contraction (-57.2%) and modest profitability (net margin ~4.1%, EBIT margin ~7.3%). Balance sheet risk is elevated as leverage rose materially (debt-to-equity ~1.43 in 2025 vs ~0.36 in 2023). Cash flow improved to positive free cash flow (~¥1.09B in 2025), but cash conversion is middling (FCF ~46% of net income).
Income Statement
56
Neutral
Balance Sheet
44
Neutral
Cash Flow
52
Neutral
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue21.40B21.56B18.84B14.07B13.28B12.20B
Gross Profit7.91B8.15B7.44B5.77B5.26B4.75B
EBITDA2.47B3.07B2.63B1.78B1.49B1.40B
Net Income391.00M891.00M752.00M789.00M568.00M542.00M
Balance Sheet
Total Assets28.05B27.87B27.33B15.62B14.30B13.67B
Cash, Cash Equivalents and Short-Term Investments4.52B4.54B4.29B2.94B3.08B2.87B
Total Debt11.64B12.32B12.23B2.82B2.37B2.15B
Total Liabilities19.00B19.26B19.14B7.74B6.80B4.64B
Stockholders Equity9.04B8.60B8.19B7.88B7.50B9.02B
Cash Flow
Free Cash Flow1.09B1.09B799.00M-82.00M445.00M743.00M
Operating Cash Flow2.38B2.38B2.00B1.27B1.35B1.37B
Investing Cash Flow-1.78B-1.78B-9.41B-1.41B-906.00M-688.00M
Financing Cash Flow-383.00M-383.00M8.76B-2.00M-237.00M-879.00M

TEAR Corp. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price511.00
Price Trends
50DMA
467.70
Negative
100DMA
472.93
Negative
200DMA
486.62
Negative
Market Momentum
MACD
-5.64
Positive
RSI
40.13
Neutral
STOCH
44.89
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 511 is above the 20-day moving average (MA) of 462.05, above the 50-day MA of 467.70, and above the 200-day MA of 486.62, indicating a bearish trend. The MACD of -5.64 indicates Positive momentum. The RSI at 40.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.89 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥18.32B11.242.82%7.92%74.91%
63
Neutral
¥32.54B29.372.52%-7.58%-37.96%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
¥10.17B73.574.02%-2.14%-88.60%
47
Neutral
¥1.58B308.642.62%-3.30%-95.72%
45
Neutral
¥1.97B-8.53-6.56%-522.16%
40
Underperform
¥1.63B-9.451.01%-3.95%-510.14%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2485
TEAR Corp.
451.00
-74.30
-14.14%
JP:2305
Studio Alice Co., Ltd.
1,931.00
-164.75
-7.86%
JP:3041
Beauty Kadan Holdings Co. Ltd.
402.00
-56.00
-12.23%
JP:4679
TAYA Co.,Ltd.
262.00
10.00
3.97%
JP:7358
Poppins Corporation
1,847.00
374.77
25.46%
JP:7502
PLAZA HOLDINGS CO.,LTD.
1,679.00
-109.94
-6.15%
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: Aug 06, 2026