TEAR Corp. Fundamental Analysis (JPX: 2485.T)
TEAR Corp. Fundamental Analysis (JPX: 2485.T)
TEAR Corp. (JPX: 2485.T) shows weak financial fundamentals with a PE ratio of 73.57, profit margin of 0.65%, and ROE of 1.57%. The company generates $21.2B in annual revenue with strong year-over-year growth of 14.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2485.T's fundamental strength across five key dimensions:
Efficiency Score
Weak2485.T struggles to generate sufficient returns from assets.
Valuation Score
Moderate2485.T shows balanced valuation metrics.
Growth Score
Excellent2485.T delivers strong and consistent growth momentum.
Financial Health Score
Weak2485.T carries high financial risk with limited liquidity.
Profitability Score
Moderate2485.T maintains healthy but balanced margins.
Key Financial Metrics
Is 2485.T Expensive or Cheap?
P/E Ratio
2485.T trades at 73.57 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 2485.T's PEG of -0.83 indicates potential undervaluation.
Price to Book
The market values TEAR Corp. at 1.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.02 times EBITDA. This is generally considered low.
How Well Does 2485.T Make Money?
Net Profit Margin
For every $100 in sales, TEAR Corp. keeps $0.65 as profit after all expenses.
Operating Margin
Core operations generate 3.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.57 in profit for every $100 of shareholder equity.
ROA
TEAR Corp. generates $0.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TEAR Corp. produces operating cash flow of $2.38B, showing steady but balanced cash generation.
Free Cash Flow
TEAR Corp. produces free cash flow of $1.09B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $48.39 in free cash annually.
FCF Yield
2485.T converts 10.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
73.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 2485.T Stacks Against Its Sector Peers
| Metric | 2485.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 73.57 | 25.68 | Worse (Expensive) |
| ROE | 1.57% | 970.00% | Weak |
| Net Margin | 0.65% | -4902.00% (disorted) | Weak |
| Debt/Equity | 1.35 | 0.60 | Weak (High Leverage) |
| Current Ratio | 0.93 | 2.33 | Weak Liquidity |
| ROA | 0.51% | 321.00% | Weak |
2485.T outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TEAR Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
157.11%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
140.00%
Industry Style: Cyclical, Growth, Discretionary
High Growth