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Tokushu Tokai Paper Co., Ltd. (JP:3708)
:3708
Japanese Market
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Tokushu Tokai Paper Co., Ltd. (3708) AI Stock Analysis

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JP:3708

Tokushu Tokai Paper Co., Ltd.

(3708)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥2,154.00
▲(36.33% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by steady financials with manageable leverage but uneven free-cash-flow consistency, plus supportive technical positioning above key moving averages. An attractive low P/E and decent dividend yield further lift the overall assessment.
Positive Factors
Manageable leverage and stronger equity base
Leverage in the mid-0.3x range and a rising equity base to ~¥83.5B provide durable financial flexibility. Lower leverage reduces refinancing and interest risk, supporting capex, working capital needs and resilience to cyclical downturns over the next several quarters.
Negative Factors
Volatile free cash flow
Wide swings in free cash flow, including negative years, reduce predictability for capex, dividends and debt reduction. This volatility likely stems from working-capital and capex timing and can constrain long-term planning despite positive operating cash flow trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage and stronger equity base
Leverage in the mid-0.3x range and a rising equity base to ~¥83.5B provide durable financial flexibility. Lower leverage reduces refinancing and interest risk, supporting capex, working capital needs and resilience to cyclical downturns over the next several quarters.
Read all positive factors

Tokushu Tokai Paper Co., Ltd. (3708) vs. iShares MSCI Japan ETF (EWJ)

Tokushu Tokai Paper Co., Ltd. Business Overview & Revenue Model

Company Description
Tokushu Tokai Paper Co., Ltd. operates in Japan, manufacturing, processing, and distributing a diverse range of paper products. Its offerings encompass specialized papers like decorative, high-grade printer, canvas, functional, security, and infor...
How the Company Makes Money
Tokushu Tokai Paper primarily makes money by manufacturing and selling specialty paper and processed paper products to corporate customers. Revenue is generated through (1) sales of specialty paper grades designed for functional/industrial uses an...

Tokushu Tokai Paper Co., Ltd. Financial Statement Overview

Summary
Balanced fundamentals: leverage is manageable and equity has grown, while profitability has recovered from 2023 levels. Offsetting this, revenue slipped slightly in 2026 and free cash flow has been volatile (including negative years), reducing cash-return predictability.
Income Statement
62
Positive
Balance Sheet
71
Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue96.38B95.41B94.80B86.52B84.13B80.71B
Gross Profit12.67B13.19B11.81B9.68B8.21B11.15B
EBITDA10.99B11.38B10.60B8.75B7.81B10.60B
Net Income3.57B4.37B3.61B4.59B4.13B5.25B
Balance Sheet
Total Assets137.66B141.31B140.77B134.27B124.15B126.82B
Cash, Cash Equivalents and Short-Term Investments8.90B7.81B11.38B13.43B10.30B12.06B
Total Debt28.75B26.49B29.60B27.21B24.64B24.79B
Total Liabilities51.90B51.20B54.93B50.34B45.57B48.25B
Stockholders Equity79.26B83.46B78.68B77.01B72.23B72.29B
Cash Flow
Free Cash Flow594.00M1.66B-1.13B5.09B-2.15B2.24B
Operating Cash Flow2.49B9.89B8.77B11.40B2.58B9.58B
Investing Cash Flow-2.66B-7.92B-9.37B-6.10B-1.15B-4.70B
Financing Cash Flow-1.53B-5.49B-1.50B-2.58B-3.18B-6.42B

Tokushu Tokai Paper Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1580.00
Price Trends
50DMA
1737.84
Positive
100DMA
1679.53
Positive
200DMA
1603.77
Positive
Market Momentum
MACD
43.34
Negative
RSI
70.10
Negative
STOCH
78.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3708, the sentiment is Positive. The current price of 1580 is below the 20-day moving average (MA) of 1833.05, below the 50-day MA of 1737.84, and below the 200-day MA of 1603.77, indicating a bullish trend. The MACD of 43.34 indicates Negative momentum. The RSI at 70.10 is Negative, neither overbought nor oversold. The STOCH value of 78.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3708.

Tokushu Tokai Paper Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥73.38B15.162.67%0.65%22.71%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
¥691.45B13.182.55%3.51%0.67%33.33%
57
Neutral
¥137.03B19.733.97%2.71%-5.88%-52.79%
55
Neutral
¥45.12B23.26-0.13%2.31%-10.51%-56.22%
52
Neutral
¥151.23B13.013.57%1.31%0.86%158.75%
49
Neutral
¥155.24B17.331.66%1.53%-0.32%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3708
Tokushu Tokai Paper Co., Ltd.
1,958.00
712.14
57.16%
JP:3864
Mitsubishi Paper Mills
1,015.00
383.76
60.80%
JP:3863
Nippon Paper
1,309.00
281.23
27.36%
JP:3861
Oji Holdings
814.20
101.84
14.30%
JP:3865
Hokuetsu Corporation
866.00
-135.23
-13.51%
JP:3880
Daio Paper Corporation
935.00
120.75
14.83%

Tokushu Tokai Paper Co., Ltd. Corporate Events

Tokushu Tokai Paper Adopts Restricted Stock Plan for Directors
Jun 26, 2026
Tokushu Tokai Paper has approved a new restricted stock compensation plan for its directors, excluding outside directors and audit and supervisory committee members. The plan sets an annual cap of 60 million yen in monetary compensation claims and...
Tokushu Tokai Paper Corrects Date Error in Dividend Policy Notice
May 21, 2026
Tokushu Tokai Paper has issued a correction to an earlier notice on the distribution of retained earnings and its dividend policy, clarifying an error in the stated date of the latest dividend forecast announcement. The company confirmed that the ...
Tokushu Tokai Paper Announces Board-Approved Organizational and Officer Changes
May 14, 2026
Tokushu Tokai Paper Co., Ltd. has approved a series of organizational and personnel changes as part of its ongoing governance and management structure review. The board resolution covers revisions to the Corporate Center’s organization, reti...
Tokushu Tokai Paper to Introduce Restricted Stock Plan for Directors
May 14, 2026
Tokushu Tokai Paper has approved a revamp of its executive compensation framework, introducing a restricted stock plan for internal directors, excluding outside directors and those on the Audit and Supervisory Committee. The proposal will be submi...
Tokushu Tokai Paper Launches 7th Medium-Term Plan With Higher Profit and Shareholder Return Targets
May 14, 2026
Tokushu Tokai Paper has unveiled its 7th Medium-Term Management Plan covering fiscal years ending March 2027 to March 2029, framed as the first phase of a nine-year long-term vision to boost profitability above the cost of shareholders’ equi...
Tokushu Tokai Paper Hikes Dividend and Adopts More Generous Payout Policy
May 14, 2026
Tokushu Tokai Paper will raise its year-end dividend for the fiscal year ended March 2026 to ¥32 per share, above its previous forecast of ¥22 and up from ¥20 a year earlier. This lifts the annual dividend to ¥53.67 per share, ...
Tokushu Tokai Paper Lifts Earnings and Dividends, Strengthens Balance Sheet
May 14, 2026
Tokushu Tokai Paper reported consolidated net sales of ¥95.4 billion for the year ended March 31, 2026, up 0.6% year on year, with operating income rising 9.4% to ¥4.3 billion and profit attributable to owners of parent jumping 21.1% to ...
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: May 15, 2026