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Tokushu Tokai Paper Co., Ltd. (3708) AI Stock Analysis

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JP:3708

Tokushu Tokai Paper Co., Ltd.

(TSE/TYO:3708)

Select Model
Rating:68.4Neutral
Price Target:JPY 2,338.00â–²(9.30% Upside)
Action:downgraded
Date:08/17/26

The overall score of 68.4 reflects a mixed but generally positive outlook. The company's strong balance sheet and bullish technical trends are key strengths, while financial performance shows some volatility and margin pressures. Valuation appears reasonable, providing a margin of safety and income. Continued improvement in profitability and cash flow could drive further upside.

Positive Factors
Manageable Leverage and Growing EquityModerate leverage and expanding equity provide financial resilience, helping the company absorb industry volatility and fund operations without relying excessively on additional borrowing.
Negative Factors
Recent Revenue ContractionThe recent revenue decline suggests demand or mix pressure across the company’s specialty paper markets. Prolonged stagnation would constrain operating leverage and make future profit improvement more dependent on pricing or cost reductions.

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

-10%0%10%20%30%40%50%60%70%JP:3708+54.53%EWJ+15.69%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 73.62B
Dividend Yield
3.69%
Average Volume (3M)
59.95K
Price to Earnings (P/E)
16.1
Beta (1Y)
0.53
Revenue Growth
1.85%
EPS Growth
12.53%
Country
Japan
Employees
1,873
Sector
Basic Materials
Sector Strength
61
Industry
Paper, Lumber & Forest Products

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 informat...

How the Company Makes Money

null

Tokushu Tokai Paper Co., Ltd. Financial Statement Overview

Summary

Revenue growth but margin pressure (Income Statement score 58), strong balance sheet (78), and volatile cash flows (50). Overall financial health is stable but with room for improvement.

Income Statement

58Neutral

Balance Sheet

78Positive

Cash Flow

50Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue96.35B95.41B94.80B86.52B84.13B80.71B
Gross Profit13.49B13.19B11.81B9.68B8.21B11.15B
EBITDA11.63B11.38B10.60B8.75B7.81B10.60B
Net Income4.64B4.37B3.61B4.59B4.13B5.25B
Balance Sheet
Total Assets141.86B141.31B140.77B134.27B124.15B126.82B
Cash, Cash Equivalents and Short-Term Investments7.53B7.81B11.38B13.43B10.30B12.06B
Total Debt26.02B26.49B29.60B27.21B24.64B24.79B
Total Liabilities50.75B51.20B54.93B50.34B45.57B48.25B
Stockholders Equity84.49B83.46B78.68B77.01B72.23B72.29B
Cash Flow
Free Cash Flow01.66B-1.13B5.09B-2.15B2.24B
Operating Cash Flow09.89B8.77B11.40B2.58B9.58B
Investing Cash Flow0-7.92B-9.37B-6.10B-1.15B-4.70B
Financing Cash Flow0-5.49B-1.50B-2.58B-3.18B-6.42B

Tokushu Tokai Paper Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price2139.00

Price Trends

50DMA2135.79Positive
100DMA2059.13Positive
200DMA1836.96Positive

Market Momentum

MACD13.09Negative
RSI49.07Neutral
STOCH61.15Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3708, the sentiment is Neutral. The current price of 2139.00 is below the 20-day moving average (MA) of 2153.80, above the 50-day MA of 2135.79, and above the 200-day MA of 1836.96, indicating a neutral trend. The MACD of 13.09 indicates Negative momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 61.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3708.

Tokushu Tokai Paper Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3708 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3708JP:370868NeutralJPY 81.09B16.13―3.69%1.85%12.53%
JP:3863JP:386364NeutralJPY 140.49B8.713.20%1.22%4.09%-7.89%
JP:3861JP:386162NeutralJPY 696.54B13.115.21%4.34%3.44%87.34%
JP:3865JP:386562NeutralJPY 127.85B19.982.61%3.18%-5.23%-55.21%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:3880JP:388058NeutralJPY 163.21B20.363.48%1.42%1.33%―
JP:3864JP:386454NeutralJPY 52.59B9.845.78%1.82%-6.05%82.63%

* Basic Materials Sector Average

Performance Comparison

0%25%50%75%100%JP:3708JP:3864JP:3863JP:3861JP:3865JP:3880Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3708 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3708Tokushu Tokai Paper Co., Ltd.2139.00724.0851.17%
JP:3864Mitsubishi Paper Mills 1207.00593.9896.90%
JP:3863Nippon Paper Industries Co1226.00170.3716.14%
JP:3861Oji Holdings Corp830.2085.9311.55%
JP:3865Hokuetsu Corporation817.00-17.35-2.08%
JP:3880Daio Paper Corporation986.00103.2411.69%

Tokushu Tokai Paper Co., Ltd. Corporate Events

Tokushu Tokai Paper Completes ¥1.8 Billion Share Buyback and Plans Cancellation

Aug 10, 2026

Tokushu Tokai Paper Co., Ltd., a Japan-based paper manufacturer listed on the TSE Prime Market, produces and sells paper products for a broad customer base. Its shares are actively traded on the Tokyo Stock Exchange, and the company’s governance stru...

Tokushu Tokai Paper Launches ¥1.8 Billion Share Buyback and Cancellation Plan

Aug 7, 2026

Tokushu Tokai Paper will repurchase up to 900,000 of its common shares, representing about 2.56% of its outstanding stock, via an off-auction transaction on the Tokyo Stock Exchange at the August 7 closing price of 2,050 yen per share. The buyback, c...

Tokushu Tokai Paper Books ¥1.46 Billion Extraordinary Gain on Subsidiary Merger

Aug 7, 2026

Tokushu Tokai Paper Co., Ltd. has reported an extraordinary income in its non-consolidated financial statements following the absorption merger of its wholly owned subsidiary TT Trading Co., Ltd. effective April 1, 2026. The transaction reflects the...

Tokushu Tokai Paper Delivers Profit Growth and Affirms Full-Year Outlook

Aug 7, 2026

Tokushu Tokai Paper reported solid results for the three months ended June 30, 2026, with net sales rising 3.9% year on year to ¥25.2 billion and operating income increasing 10.5% to ¥1.46 billion. Ordinary income climbed 7.3% to ¥2.13 billion, while...

Tokushu Tokai Paper Completes Restricted Stock Treasury Share Disposal

Jul 24, 2026

Tokushu Tokai Paper Co., Ltd., a TSE Prime Market-listed manufacturer in the paper industry, focuses on supplying paper and related products to industrial and commercial customers. Its governance structure and use of share-based compensation highligh...

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 a...

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 ref...

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 17, 2026