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TEAR Corp. (2485) AI Stock Analysis

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JP:2485

TEAR Corp.

(TSE/TYO:2485)

Select Model
Rating:48Neutral
Price Target:JPY 464.00â–²(14.29% Upside)
Action:reiterated
Date:08/06/26

The stock scores low primarily due to severe revenue declines, high debt, and an unsustainable dividend payout. Technicals show weak price action, adding to caution. While strong cash flow generation offers some support, these risks outweigh the positives, resulting in a score of 48.

Positive Factors
Improving cash generationFree 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 declineA 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.

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

-20%-10%0%10%20%30%JP:2485-11.94%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 9.09B
Dividend Yield
4.78%
Average Volume (3M)
46.35K
Price to Earnings (P/E)
66.2
Beta (1Y)
0.24
Revenue Growth
-2.14%
EPS Growth
-88.60%
Country
Japan
Employees
971
Sector
Consumer Cyclical
Sector Strength
61
Industry
Personal Products & Services

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 and...

TEAR Corp. Financial Statement Overview

Summary

Severe revenue contraction (-57.2%) and declining gross margins indicate top-line pressure. High leverage (debt-to-equity 1.43) remains a concern, though improved from prior. Strong operating cash flow conversion (2.67x net income) and free cash flow growth provide partial offset. Overall, material financial risk.

Income Statement

20Very Negative

Balance Sheet

40Negative

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue21.22B21.56B18.84B14.07B13.28B12.20B
Gross Profit7.71B8.15B7.44B5.77B5.26B4.75B
EBITDA2.15B3.07B2.63B1.78B1.49B1.40B
Net Income138.00M891.00M752.00M789.00M568.00M542.00M
Balance Sheet
Total Assets27.24B27.87B27.33B15.62B14.30B13.67B
Cash, Cash Equivalents and Short-Term Investments3.81B4.54B4.29B2.94B3.08B2.87B
Total Debt11.78B12.32B12.23B2.82B2.37B2.15B
Total Liabilities18.52B19.26B19.14B7.74B6.80B4.64B
Stockholders Equity8.71B8.60B8.19B7.88B7.50B9.02B
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 SentimentNegative
Last Price406.00

Price Trends

50DMA429.17Negative
100DMA441.10Negative
200DMA461.77Negative

Market Momentum

MACD-6.28Positive
RSI30.97Neutral
STOCH18.40Positive

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 406.00 is below the 20-day moving average (MA) of 421.00, below the 50-day MA of 429.17, and below the 200-day MA of 461.77, indicating a bearish trend. The MACD of -6.28 indicates Positive momentum. The RSI at 30.97 is Neutral, neither overbought nor oversold. The STOCH value of 18.40 is Positive, 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

JP:2485 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7358JP:735871OutperformJPY 17.30B10.49―2.63%8.02%47.33%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:2305JP:230560NeutralJPY 31.18B20.06―2.72%-4.42%-1.75%
JP:2485JP:248548NeutralJPY 9.12B66.23―4.78%-2.14%-88.60%
JP:7502JP:750247NeutralJPY 1.51B-35.17―3.13%-7.84%-129.39%
JP:3041JP:304142NeutralJPY 1.45B-8.41―1.17%-3.95%-510.13%
JP:4679JP:467941NeutralJPY 1.94B-8.40――-5.68%-15204.69%

* Consumer Cyclical Sector Average

Performance Comparison

-20%0%20%40%60%JP:2485JP:2305JP:3041JP:4679JP:7358JP:7502Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:2485 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2485TEAR Corp.406.00-62.69-13.37%
JP:2305Studio Alice Co., Ltd.1839.00-127.05-6.46%
JP:3041Beauty Kadan Holdings Co. Ltd.358.00-95.00-20.97%
JP:4679TAYA Co.,Ltd.263.0031.0013.36%
JP:7358Poppins Corporation1710.00383.6328.92%
JP:7502PLAZA HOLDINGS CO.,LTD.1597.00-235.72-12.86%
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