Chuetsu Pulp & Paper Co., Ltd. (3877) AI Stock Analysis

• Market Cap: ¥22.32B
• Dividend Yield: 4.19%
• Average Volume (3M): 46.72K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.84
• Revenue Growth: 2.95%
• EPS Growth: -52.19%
• Country: JP
• Employees: 1,299
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -61.46
• Shares Outstanding: 13,354,688
• 10 Day Avg. Volume: 41,270
• 30 Day Avg. Volume: 46,720
• PEG Ratio: -2.27
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,762.00 ▲(5.38%Upside)

The stock score of 75 reflects strong technical indicators and a solid valuation profile, although financial performance is somewhat hampered by declining margins and ROE. The company's stable revenue growth and improved debt management are positives, while operational efficiency needs improvement.

Chuetsu Pulp & Paper Co., Ltd. Business Overview & Revenue Model

Company Description

Chuetsu Pulp & Paper Co., Ltd. is a Japan-based company primarily engaged in the manufacture and sale of pulp, paper, and paperboard products. The company operates in various sectors, including industrial paper, packaging, and printing paper. Its core products include newsprint, printing and writing paper, corrugated containerboard, and pulp products, serving a wide range of industries both domestically and internationally.

How the Company Makes Money

Chuetsu Pulp & Paper Co., Ltd. generates revenue primarily through the production and sale of pulp, paper, and related products. The company's key revenue streams include the sale of newsprint, which is used by newspaper publishers, and printing and writing paper, which is utilized by businesses and educational institutions. Additionally, Chuetsu Pulp & Paper supplies corrugated containerboard for packaging solutions, catering to the logistics and consumer goods sectors. The company also engages in the production of pulp, which is sold to other paper manufacturers. Significant partnerships with domestic and international distributors and a strong focus on sustainable and innovative production methods contribute to the company's earnings.

Chuetsu Pulp & Paper Co., Ltd. Financial Statement Overview

Summary

Chuetsu Pulp & Paper demonstrates strong revenue growth and profitability improvement. The balance sheet is robust with moderate leverage, but cash flow management and visibility require attention.

Income Statement

Chuetsu Pulp & Paper exhibits strong revenue growth with a 5.6% increase in TTM compared to the previous year. The gross profit margin is solid at 15.52%, indicating efficient cost management. The net profit margin improved to 4.13% in TTM, reflecting enhanced profitability. However, the EBIT margin decreased slightly, indicating potential operational efficiency challenges.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.64, suggesting moderate leverage. The equity ratio stands at 46.16%, indicating a strong capital base. Return on Equity (ROE) improved to 7.97% in TTM, showcasing effective use of shareholder funds. However, a high level of debt remains a potential risk factor.

Cash Flow

Chuetsu Pulp & Paper's operating cash flow is stable, but the lack of reported free cash flow for TTM limits cash flow analysis. Previously, the free cash flow showed volatility, highlighting potential cash management issues. The company needs to improve cash flow visibility to mitigate financial risks.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
111.08B	107.83B	105.67B	90.10B	81.94B	95.14B
	Gross Profit
17.16B	17.70B	14.61B	13.87B	13.81B	17.60B
	EBIT
5.07B	6.17B	2.59B	2.35B	-347.00M	2.06B
	EBITDA
8.93B	11.19B	8.42B	8.62B	5.91B	8.97B
	Net Income Common Stockholders
3.09B	3.70B	3.05B	1.27B	-1.05B	919.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.67B	10.67B	8.11B	14.86B	15.57B	7.22B
	Total Assets
129.57B	128.92B	122.75B	122.03B	123.49B	120.83B
	Total Debt
41.69B	41.69B	44.01B	47.85B	53.45B	46.79B
	Net Debt
31.02B	31.02B	35.90B	32.99B	37.87B	39.57B
	Total Liabilities
73.96B	73.32B	71.12B	73.41B	76.04B	72.37B
	Stockholders Equity
55.60B	55.60B	51.61B	48.58B	47.41B	48.42B
Cash Flow		Free Cash Flow
0.00	5.53B	-3.32B	4.44B	1.19B	2.67B
	Operating Cash Flow
0.00	13.56B	2.66B	8.26B	5.96B	8.34B
	Investing Cash Flow
0.00	-7.91B	-5.12B	-3.15B	-3.90B	-4.65B
	Financing Cash Flow
0.00	-3.10B	-4.79B	-5.89B	6.28B	-2.39B

Chuetsu Pulp & Paper Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1672.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3877, the sentiment is Positive. The current price of 1672 is above the 20-day moving average (MA) of 1553.60, above the 50-day MA of 1480.79, and above the 200-day MA of 1380.92, indicating a bullish trend. The MACD of 42.70 indicates Negative momentum. The RSI at 76.32 is Negative, neither overbought nor oversold. The STOCH value of 92.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3877.

Chuetsu Pulp & Paper Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3877	75 Outperform	¥22.32B	12.24		4.19%	2.95%	-52.19%
3708	72 Outperform	¥42.18B	11.95		3.26%	9.57%	-20.71%
8032	66 Neutral	¥88.59B	9.68		4.20%	3.80%	-22.03%
3863	63 Neutral	$122.81B	27.03	0.90%	0.89%	1.30%	-80.06%
3864	60 Neutral	€28.45B	6.46	4.96%	2.46%	-9.06%	4.05%
3880	54 Neutral	€136.81B	―	-4.63%	1.78%	-0.41%	-348.23%
Sector *	50 Neutral	$2.00B	-1.12	-21.15%	3.68%	2.69%	-30.65%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Reports Mixed Financial Results with Optimistic Outlook

Chuetsu Pulp & Paper Co., Ltd. reported a modest increase in net sales for the fiscal year ending March 2025, but experienced significant declines in operating and ordinary profits, as well as a sharp drop in profit attributable to owners of the parent. Despite these challenges, the company improved its shareholders’ equity ratio and increased its annual dividend per share, reflecting a commitment to returning value to shareholders. The financial forecast for the upcoming year suggests slight growth in net sales and profits, indicating a cautious optimism about future performance.