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

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JP:3877

Chuetsu Pulp & Paper Co., Ltd.

(TSE/TYO:3877)

Select Model
Rating:65Neutral
Price Target:JPY 2,371.00▲(16.00% Upside)
Action:reiterated
Date:08/17/26

The overall score reflects strong valuation (low P/E and high dividend yield) and favorable technical momentum (price above key moving averages with positive MACD). Offsetting these positives, financial performance is constrained by recent margin compression and especially weak/volatile cash generation, despite an improving leverage profile.

Positive Factors
Improved Balance SheetDebt reduction from about 1.13x to 0.56x equity, alongside equity growth, gives Chuetsu a stronger capital base. This should improve resilience and financing flexibility over the next several quarters, even though returns on that capital remain modest.
Negative Factors
Margin CompressionGross margin fell from about 16.4% in 2024 to 13.4% in 2026, while EBITDA margin declined from 10.4% to 8.1%. Persistent compression would limit earnings conversion and reduce the benefit of any sales recovery.

Chuetsu Pulp & Paper Co., Ltd. (3877) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%30%35%JP:3877+20.89%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 25.87B
Dividend Yield
5.38%
Average Volume (3M)
38.56K
Price to Earnings (P/E)
8.6
Beta (1Y)
0.60
Revenue Growth
0.40%
EPS Growth
167.42%
Country
Japan
Employees
1,273
Sector
Basic Materials
Sector Strength
61
Industry
Paper, Lumber & Forest Products

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

Company Description

Chuetsu Pulp & Paper Co., Ltd. is primarily focused on the creation, transformation, and distribution of pulp, paper, and associated derivative products. Its offerings include a diverse range of paper grades for printing, information, packaging, and...

How the Company Makes Money

Chuetsu Pulp & Paper primarily makes money by manufacturing and selling paper products and related materials to customers (typically through business-to-business channels). Revenue is generated from (1) product sales of paper/paperboard-type outputs...

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

Summary

Financials are mixed: profitability remains positive but has weakened with flat-to-down revenue and notable margin compression. The balance sheet is steadier with materially improved leverage, but cash flow is the key concern given the sharp drop in operating cash flow and near-breakeven free cash flow in 2026.

Income Statement

54Neutral

Balance Sheet

63Positive

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue111.78B110.39B111.01B107.83B105.67B90.10B
Gross Profit15.60B14.74B17.15B17.70B14.64B13.92B
EBITDA9.37B8.89B11.01B12.10B8.42B8.62B
Net Income3.01B2.44B1.76B3.70B3.05B1.27B
Balance Sheet
Total Assets117.08B119.09B122.67B129.57B123.11B122.03B
Cash, Cash Equivalents and Short-Term Investments3.12B4.88B9.01B10.67B8.11B14.86B
Total Debt32.32B33.35B37.19B41.69B44.01B47.85B
Total Liabilities56.54B59.13B66.72B73.96B71.48B73.41B
Stockholders Equity60.53B59.95B56.89B55.60B51.62B48.59B
Cash Flow
Free Cash Flow026.00M4.00B5.53B-3.32B4.44B
Operating Cash Flow04.67B10.36B13.56B2.66B8.26B
Investing Cash Flow0-4.00B-6.01B-7.91B-5.12B-3.15B
Financing Cash Flow0-4.79B-6.01B-3.10B-4.79B-5.89B

Chuetsu Pulp & Paper Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price2044.00

Price Trends

50DMA2123.80Negative
100DMA2089.19Negative
200DMA1990.18Positive

Market Momentum

MACD-28.58Positive
RSI40.61Neutral
STOCH47.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3877, the sentiment is Neutral. The current price of 2044.00 is below the 20-day moving average (MA) of 2072.00, below the 50-day MA of 2123.80, and above the 200-day MA of 1990.18, indicating a neutral trend. The MACD of -28.58 indicates Positive momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 47.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3877.

Chuetsu Pulp & Paper Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3877 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8032JP:803269NeutralJPY 129.03B17.51―3.43%12.36%175.55%
JP:3708JP:370868NeutralJPY 80.47B16.39―3.56%-0.03%30.67%
JP:3877JP:387765NeutralJPY 27.01B8.56―5.38%0.40%167.42%
JP:3861JP:386162NeutralJPY 705.03B11.575.99%4.39%3.44%87.22%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:3880JP:388058NeutralJPY 166.37B20.263.48%1.42%1.33%―
JP:3863JP:386354NeutralJPY 141.07B8.553.20%1.23%4.09%-7.89%

* Basic Materials Sector Average

Performance Comparison

0%25%50%75%JP:3877JP:3863JP:3861JP:3880JP:3708JP:8032Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3877 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3877Chuetsu Pulp & Paper Co., Ltd.2044.00403.4624.59%
JP:3863Nippon Paper Industries Co1216.00125.7811.54%
JP:3861Oji Holdings Corp820.2053.206.94%
JP:3880Daio Paper Corporation983.0064.737.05%
JP:3708Tokushu Tokai Paper Co., Ltd.2217.00768.4853.05%
JP:8032Japan Pulp and Paper Co. Ltd.1109.00412.6859.27%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Outlines Fiscal 2026 Q1 Consolidated Results

Aug 6, 2026

Chuetsu Pulp & Paper Co., Ltd. reported its consolidated financial results for the first quarter of fiscal 2026, detailing sales and operating profit by segment and a breakdown of changes in consolidated operating profit. The company emphasized that...

Chuetsu Pulp & Paper Returns to Profit and Lifts Dividend Outlook

Aug 6, 2026

Chuetsu Pulp & Paper reported consolidated net sales of ¥28.1 billion for the three months ended June 30, 2026, up 5.2% year on year, with operating profit rebounding to ¥500 million from a loss a year earlier and profit attributable to owners of par...

Chuetsu Pulp & Paper to Grant Restricted Stock from Treasury Shares

Jul 23, 2026

Chuetsu Pulp & Paper has approved the disposal of 11,207 treasury shares as restricted stock compensation to three directors, seven executive officers and two advisors, valued at about ¥24.3 million. The shares, priced at ¥2,170 each, are subject to...

Chuetsu Pulp & Paper Details Ties and Transactions with Oji Group Affiliate

Jun 29, 2026

Chuetsu Pulp & Paper has disclosed details of its relationship with Oji Holdings Corporation, which holds 22.2% of its voting rights and is classified as an “other affiliated company.” While the two companies maintain a cooperative relationship as ne...

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