New Risk • May 26
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (114% cash payout ratio). Profit margins are more than 30% lower than last year (1.8% net profit margin). Market cap is less than US$100m (JP¥9.90b market cap, or US$62.3m). Reported Earnings • May 19
Second quarter 2026 earnings released: EPS: JP¥12.93 (vs JP¥27.99 in 2Q 2025) Second quarter 2026 results: EPS: JP¥12.93 (down from JP¥27.99 in 2Q 2025). Revenue: JP¥5.65b (down 8.3% from 2Q 2025). Net income: JP¥291.0m (down 54% from 2Q 2025). Profit margin: 5.1% (down from 10% in 2Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 02 June 2026. Payout ratio is a comfortable 62% and this is well supported by cash flows. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 14
First quarter 2026 earnings released: EPS: JP¥10.04 (vs JP¥17.20 in 1Q 2025) First quarter 2026 results: EPS: JP¥10.04 (down from JP¥17.20 in 1Q 2025). Revenue: JP¥5.77b (up 6.3% from 1Q 2025). Net income: JP¥226.0m (down 42% from 1Q 2025). Profit margin: 3.9% (down from 7.1% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Dec 25
Full year 2025 earnings released: EPS: JP¥39.59 (vs JP¥33.42 in FY 2024) Full year 2025 results: EPS: JP¥39.59 (up from JP¥33.42 in FY 2024). Revenue: JP¥21.6b (up 14% from FY 2024). Net income: JP¥891.0m (up 19% from FY 2024). Profit margin: 4.1% (up from 4.0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Nov 19
Tear Corporation to Report Q1, 2026 Results on Feb 12, 2026 Tear Corporation announced that they will report Q1, 2026 results on Feb 12, 2026 Reported Earnings • Nov 17
Full year 2025 earnings released: EPS: JP¥39.59 (vs JP¥33.42 in FY 2024) Full year 2025 results: EPS: JP¥39.59 (up from JP¥33.42 in FY 2024). Revenue: JP¥21.6b (up 14% from FY 2024). Net income: JP¥891.0m (up 19% from FY 2024). Profit margin: 4.1% (up from 4.0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Nov 13
Tear Corporation, Annual General Meeting, Dec 19, 2025 Tear Corporation, Annual General Meeting, Dec 19, 2025. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 03 December 2025. Payout ratio is a comfortable 37% and this is well supported by cash flows. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.4%). Announcement • Sep 18
Tear Corporation to Report Fiscal Year 2025 Results on Nov 13, 2025 Tear Corporation announced that they will report fiscal year 2025 results on Nov 13, 2025 Reported Earnings • Aug 15
Third quarter 2025 earnings released: EPS: JP¥5.07 (vs JP¥6.93 in 3Q 2024) Third quarter 2025 results: EPS: JP¥5.07 (down from JP¥6.93 in 3Q 2024). Revenue: JP¥5.17b (up 8.4% from 3Q 2024). Net income: JP¥114.0m (down 27% from 3Q 2024). Profit margin: 2.2% (down from 3.3% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 19
Second quarter 2025 earnings released: EPS: JP¥27.99 (vs JP¥16.40 in 2Q 2024) Second quarter 2025 results: EPS: JP¥27.99 (up from JP¥16.40 in 2Q 2024). Revenue: JP¥6.16b (up 15% from 2Q 2024). Net income: JP¥630.0m (up 71% from 2Q 2024). Profit margin: 10% (up from 6.9% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • May 03
Tear Corporation to Report Q3, 2025 Results on Aug 13, 2025 Tear Corporation announced that they will report Q3, 2025 results on Aug 13, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 03 June 2025. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.6%). Reported Earnings • Feb 15
First quarter 2025 earnings released: EPS: JP¥17.20 (vs JP¥6.53 in 1Q 2024) First quarter 2025 results: EPS: JP¥17.20 (up from JP¥6.53 in 1Q 2024). Revenue: JP¥5.43b (up 43% from 1Q 2024). Net income: JP¥387.0m (up 163% from 1Q 2024). Profit margin: 7.1% (up from 3.9% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 03
Tear Corporation to Report Q2, 2025 Results on May 14, 2025 Tear Corporation announced that they will report Q2, 2025 results on May 14, 2025 Announcement • Dec 19
Tear Corporation to Report Q1, 2025 Results on Feb 13, 2025 Tear Corporation announced that they will report Q1, 2025 results on Feb 13, 2025 Announcement • Nov 14
Tear Corporation, Annual General Meeting, Dec 20, 2024 Tear Corporation, Annual General Meeting, Dec 20, 2024. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 05 December 2024. Payout ratio is a comfortable 62% and this is well supported by cash flows. Trailing yield: 4.4%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.7%). Announcement • Aug 29
Tear Corporation to Report Fiscal Year 2024 Results on Nov 14, 2024 Tear Corporation announced that they will report fiscal year 2024 results on Nov 14, 2024 Reported Earnings • Aug 18
Third quarter 2024 earnings released: EPS: JP¥6.93 (vs JP¥8.31 in 3Q 2023) Third quarter 2024 results: EPS: JP¥6.93 (down from JP¥8.31 in 3Q 2023). Revenue: JP¥4.77b (up 43% from 3Q 2023). Net income: JP¥156.0m (down 17% from 3Q 2023). Profit margin: 3.3% (down from 5.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 20
Second quarter 2024 earnings released: EPS: JP¥16.40 (vs JP¥12.56 in 2Q 2023) Second quarter 2024 results: EPS: JP¥16.40 (up from JP¥12.56 in 2Q 2023). Revenue: JP¥5.35b (up 45% from 2Q 2023). Net income: JP¥369.0m (up 31% from 2Q 2023). Profit margin: 6.9% (down from 7.6% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 03 June 2024. Payout ratio is a comfortable 67% but the company is not cash flow positive. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (2.1%). Announcement • Feb 25
Tear Corporation to Report Q2, 2024 Results on May 15, 2024 Tear Corporation announced that they will report Q2, 2024 results on May 15, 2024 Reported Earnings • Feb 16
First quarter 2024 earnings released: EPS: JP¥6.53 (vs JP¥11.65 in 1Q 2023) First quarter 2024 results: EPS: JP¥6.53 (down from JP¥11.65 in 1Q 2023). Revenue: JP¥3.79b (up 4.6% from 1Q 2023). Net income: JP¥147.0m (down 44% from 1Q 2023). Profit margin: 3.9% (down from 7.2% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 28
Full year 2023 earnings released: EPS: JP¥35.13 (vs JP¥25.35 in FY 2022) Full year 2023 results: EPS: JP¥35.13 (up from JP¥25.35 in FY 2022). Revenue: JP¥14.1b (up 5.9% from FY 2022). Net income: JP¥789.0m (up 39% from FY 2022). Profit margin: 5.6% (up from 4.3% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Dec 07
Tear Corporation to Report Q1, 2024 Results on Feb 08, 2024 Tear Corporation announced that they will report Q1, 2024 results on Feb 08, 2024 Announcement • Nov 22
Tear Corporation (TSE:2485) completed the acquisition of Hakkoden Co., Ltd. and Tokai Tenrei, K.K. from NSSK 2 Investment L.P. and Nssk II (Intl) Investment L.P. managed by Nippon Sangyo Suishin Kiko Ltd., NSSK Maples 2017 L.P. PineBee Co., Ltd and Yasutaka Matsumura Tear Corporation (TSE:2485) agreed to acquire Hakkoden Co., Ltd. and Tokai Tenrei, K.K. from NSSK 2 Investment L.P. and Nssk II (Intl) Investment L.P. managed by Nippon Sangyo Suishin Kiko Ltd., NSSK Maples 2017 L.P. PineBee Co., Ltd and Yasutaka Matsumura for ¥7.2 billion on October 24, 2023. Transaction is expected to complete on November 20, 2023.
Tear Corporation (TSE:2485) completed the acquisition of Hakkoden Co., Ltd. and Tokai Tenrei, K.K. from NSSK 2 Investment L.P. and Nssk II (Intl) Investment L.P. managed by Nippon Sangyo Suishin Kiko Ltd., NSSK Maples 2017 L.P. PineBee Co., Ltd and Yasutaka Matsumura on November 20, 2023. Announcement • Nov 13
Tear Corporation, Annual General Meeting, Dec 22, 2023 Tear Corporation, Annual General Meeting, Dec 22, 2023. Reported Earnings • Nov 11
Full year 2023 earnings released: EPS: JP¥35.13 (vs JP¥25.35 in FY 2022) Full year 2023 results: EPS: JP¥35.13 (up from JP¥25.35 in FY 2022). Revenue: JP¥14.1b (up 5.9% from FY 2022). Net income: JP¥789.0m (up 39% from FY 2022). Profit margin: 5.6% (up from 4.3% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Sep 22
Tear Corporation to Report Fiscal Year 2023 Results on Nov 10, 2023 Tear Corporation announced that they will report fiscal year 2023 results on Nov 10, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥10.00 per share at 4.3% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 06 December 2023. Payout ratio is on the higher end at 80%, and the cash payout ratio is above 100%. Trailing yield: 4.3%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (2.6%). Reported Earnings • Aug 10
Third quarter 2023 earnings released: EPS: JP¥8.31 (vs JP¥6.83 in 3Q 2022) Third quarter 2023 results: EPS: JP¥8.31 (up from JP¥6.83 in 3Q 2022). Revenue: JP¥3.35b (up 7.6% from 3Q 2022). Net income: JP¥187.0m (up 22% from 3Q 2022). Profit margin: 5.6% (up from 4.9% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Jun 24
Tear Corporation to Report Q3, 2023 Results on Aug 09, 2023 Tear Corporation announced that they will report Q3, 2023 results on Aug 09, 2023 Reported Earnings • May 13
Second quarter 2023 earnings released: EPS: JP¥12.56 (vs JP¥15.27 in 2Q 2022) Second quarter 2023 results: EPS: JP¥12.56 (down from JP¥15.27 in 2Q 2022). Revenue: JP¥3.69b (up 3.8% from 2Q 2022). Net income: JP¥282.0m (down 18% from 2Q 2022). Profit margin: 7.6% (down from 9.6% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share at 4.7% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 01 June 2023. Payout ratio is on the higher end at 77%, and the cash payout ratio is above 100%. Trailing yield: 4.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Feb 12
First quarter 2023 earnings released: EPS: JP¥11.65 (vs JP¥10.89 in 1Q 2022) First quarter 2023 results: EPS: JP¥11.65 (up from JP¥10.89 in 1Q 2022). Revenue: JP¥3.63b (up 8.6% from 1Q 2022). Net income: JP¥261.0m (up 7.0% from 1Q 2022). Profit margin: 7.2% (down from 7.3% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 28
Full year 2022 earnings released: EPS: JP¥25.35 (vs JP¥24.19 in FY 2021) Full year 2022 results: EPS: JP¥25.35 (up from JP¥24.19 in FY 2021). Revenue: JP¥13.3b (up 8.9% from FY 2021). Net income: JP¥568.0m (up 4.8% from FY 2021). Profit margin: 4.3% (down from 4.4% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Announcement • Dec 23
Tear Corporation to Report Q1, 2023 Results on Feb 09, 2023 Tear Corporation announced that they will report Q1, 2023 results on Feb 09, 2023 Reported Earnings • Nov 16
Full year 2022 earnings released: EPS: JP¥25.35 (vs JP¥24.19 in FY 2021) Full year 2022 results: EPS: JP¥25.35 (up from JP¥24.19 in FY 2021). Revenue: JP¥13.3b (up 8.9% from FY 2021). Net income: JP¥568.0m (up 4.8% from FY 2021). Profit margin: 4.3% (down from 4.4% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 6 highly experienced directors. 2 independent directors (5 non-independent directors). Independent Outside Director Zenryo Mori was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 13
Tear Corporation, Annual General Meeting, Dec 23, 2022 Tear Corporation, Annual General Meeting, Dec 23, 2022. Reported Earnings • Nov 13
Full year 2022 earnings released: EPS: JP¥25.35 (vs JP¥24.19 in FY 2021) Full year 2022 results: EPS: JP¥25.35 (up from JP¥24.19 in FY 2021). Revenue: JP¥13.3b (up 8.9% from FY 2021). Net income: JP¥568.0m (up 4.8% from FY 2021). Profit margin: 4.3% (down from 4.4% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Buying Opportunity • Sep 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.3%. The fair value is estimated to be JP¥532, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. Announcement • Sep 25
Tear Corporation to Report Q4, 2022 Results on Nov 11, 2022 Tear Corporation announced that they will report Q4, 2022 results on Nov 11, 2022 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 32% but the company is paying out more than the cash it is generating. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (2.5%). Reported Earnings • Aug 11
Third quarter 2022 earnings released: EPS: JP¥6.83 (vs JP¥3.62 in 3Q 2021) Third quarter 2022 results: EPS: JP¥6.83 (up from JP¥3.62 in 3Q 2021). Revenue: JP¥3.11b (up 7.8% from 3Q 2021). Net income: JP¥153.0m (up 89% from 3Q 2021). Profit margin: 4.9% (up from 2.8% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 11% per year. Reported Earnings • May 16
Second quarter 2022 earnings released: EPS: JP¥15.27 (vs JP¥9.51 in 2Q 2021) Second quarter 2022 results: EPS: JP¥15.27 (up from JP¥9.51 in 2Q 2021). Revenue: JP¥3.56b (up 13% from 2Q 2021). Net income: JP¥342.0m (up 61% from 2Q 2021). Profit margin: 9.6% (up from 6.8% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 6 highly experienced directors. 2 independent directors (5 non-independent directors). Independent Outside Director Zenryo Mori was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 07
Tear Corporation to Report Q2, 2022 Results on May 12, 2022 Tear Corporation announced that they will report Q2, 2022 results on May 12, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 01 June 2022. Payout ratio is on the higher end at 88%, however this is supported by cash flows. Trailing yield: 4.6%. Within top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.2%). Reported Earnings • Feb 09
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: JP¥10.89 (down from JP¥12.32 in 1Q 2021). Revenue: JP¥3.34b (up 3.0% from 1Q 2021). Net income: JP¥244.0m (down 12% from 1Q 2021). Profit margin: 7.3% (down from 8.5% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Reported Earnings • Dec 27
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥24.19 (up from JP¥15.40 in FY 2020). Revenue: JP¥12.2b (up 2.4% from FY 2020). Net income: JP¥542.0m (up 57% from FY 2020). Profit margin: 4.4% (up from 2.9% in FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Reported Earnings • Dec 27
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: JP¥24.19 (up from JP¥15.40 in FY 2020). Revenue: JP¥12.2b (up 2.4% from FY 2020). Net income: JP¥542.0m (up 57% from FY 2020). Profit margin: 4.4% (up from 2.9% in FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 16
Full year 2021 earnings released: EPS JP¥24.19 (vs JP¥15.40 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥12.2b (up 2.4% from FY 2020). Net income: JP¥542.0m (up 57% from FY 2020). Profit margin: 4.4% (up from 2.9% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 29 September 2021. Payment date: 02 December 2021. Trailing yield: 4.0%. Within top quartile of Japanese dividend payers (3.0%). Higher than average of industry peers (1.9%). Reported Earnings • Aug 15
Third quarter 2021 earnings released: EPS JP¥3.62 (vs JP¥5.67 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥2.89b (up 17% from 3Q 2020). Net income: JP¥81.0m (up JP¥208.0m from 3Q 2020). Profit margin: 2.8% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Reported Earnings • May 14
Second quarter 2021 earnings released: EPS JP¥9.51 (vs JP¥10.85 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: JP¥3.15b (down 4.5% from 2Q 2020). Net income: JP¥213.0m (down 12% from 2Q 2020). Profit margin: 6.8% (down from 7.4% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥10.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 01 June 2021. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.9%). Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥529, the stock is trading at a trailing P/E ratio of 32.9x, up from the previous P/E ratio of 28.3x. This compares to an average P/E of 24x in the Consumer Services industry in Japan. Total return to shareholders over the past three years is a loss of 45%. Is New 90 Day High Low • Feb 20
New 90-day high: JP¥489 The company is up 18% from its price of JP¥414 on 20 November 2020. The Japanese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Services industry, which is up 1.0% over the same period. Reported Earnings • Feb 11
First quarter 2021 earnings released: EPS JP¥12.32 (vs JP¥11.65 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: JP¥3.24b (down 4.1% from 1Q 2020). Net income: JP¥276.0m (up 5.7% from 1Q 2020). Profit margin: 8.5% (up from 7.7% in 1Q 2020). The increase in margin was driven by lower expenses. Is New 90 Day High Low • Feb 03
New 90-day high: JP¥423 The company is up 5.0% from its price of JP¥402 on 05 November 2020. The Japanese market is up 14% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Services industry, which is down 3.0% over the same period. Is New 90 Day High Low • Jan 18
New 90-day high: JP¥420 The company is up 5.0% from its price of JP¥399 on 20 October 2020. The Japanese market is up 12% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Services industry, which is down 11% over the same period. Announcement • Sep 19
Tear Corporation to Report Fiscal Year 2020 Results on Nov 11, 2020 Tear Corporation announced that they will report fiscal year 2020 results on Nov 11, 2020 