Okayama Paper Industries Co., Ltd. (3892) AI Stock Analysis

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Okayama Paper Industries Co., Ltd.

(TSE/TYO:3892)

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Rating:72Outperform

Price Target:JPY 1,825.00▲(16.61% Upside)

Action:upgraded

Date:10/15/26

The overall score of 72 reflects a company with a very strong, debt-free balance sheet that underpins its financial stability. This is the most significant positive factor. The stock also benefits from an attractive low P/E valuation and a healthy dividend yield. Positive short-term technical momentum adds support, though the price remains below its long-term average. The primary risk is the volatility in profitability and cash flows, which prevents a higher score.

Positive Factors

Very Low LeverageAn exceptionally low-debt structure reduces financial strain and preserves flexibility during weaker operating periods. Steady equity growth also supports a stronger asset base, allowing the company to fund investment and withstand shocks without relying heavily on external financing.

Negative Factors

Recent Revenue DeclineThe latest revenue contraction indicates that near-term demand or volume has weakened after several years of broadly stable sales. If the decline persists, it could reduce operating leverage, constrain investment capacity, and make restoring prior earnings growth more difficult.

Okayama Paper Industries Co., Ltd. (3892) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.27B
Dividend Yield: 3.19%
Average Volume (3M): 2,770
Price to Earnings (P/E): 8.8
Beta (1Y): 0.64
Revenue Growth: -0.25%
EPS Growth: 2.38%
Country: Japan
Employees: 204
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

Okayama Paper Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Okayama Paper Industries Co., Ltd. engages in the manufacture and sale of paper products in Japan and internationally. It operates through Paperboard Business and Decorative Corrugated Board Business segments. The company provides core paper, paper t...

Okayama Paper Industries Co., Ltd. Financial Statement Overview

Summary

The company's financial health is solid, anchored by an exceptional balance sheet with virtually no debt and growing equity. Profitability is decent but volatile, and cash flows are generally positive despite a recent outlier year. The strong balance sheet mitigates income and cash flow instability.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	11.31B	11.22B	11.52B	11.51B	10.87B	10.08B
Gross Profit	2.79B	2.71B	2.83B	3.29B	2.27B	2.23B
EBITDA	1.30B	1.25B	1.31B	1.99B	913.34M	1.02B
Net Income	829.59M	821.74M	798.70M	1.16B	494.92M	591.13M
Balance Sheet
Total Assets	18.60B	18.52B	16.93B	18.24B	15.37B	14.88B
Cash, Cash Equivalents and Short-Term Investments	5.25B	5.26B	4.47B	6.60B	4.96B	5.03B
Total Debt	3.85M	17.64M	38.69M	48.48M	72.79M	36.55M
Total Liabilities	3.79B	4.04B	3.99B	6.00B	4.84B	4.42B
Stockholders Equity	14.81B	14.48B	12.94B	12.24B	10.53B	10.45B
Cash Flow
Free Cash Flow	1.00B	1.00B	-1.96B	1.73B	338.94M	662.27M
Operating Cash Flow	1.80B	1.80B	-1.46B	2.01B	623.62M	937.80M
Investing Cash Flow	-748.41M	-748.41M	-499.79M	-266.94M	-268.76M	-179.08M
Financing Cash Flow	-252.60M	-252.60M	-164.91M	-107.36M	-420.23M	-96.65M

Okayama Paper Industries Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1565.00

Price Trends

50DMA1611.18Negative

100DMA1612.12Negative

200DMA1669.60Negative

Market Momentum

MACD-14.43Positive

RSI33.67Neutral

STOCH13.61Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3892, the sentiment is Negative. The current price of 1565.00 is below the 20-day moving average (MA) of 1631.05, below the 50-day MA of 1611.18, and below the 200-day MA of 1669.60, indicating a bearish trend. The MACD of -14.43 indicates Positive momentum. The RSI at 33.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3892.

Okayama Paper Industries Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3892 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3892	72Outperform	JPY 7.86B	8.76	―	3.19%	-0.25%	2.38%
JP:3895	70Outperform	JPY 3.28B	7.58	―	3.90%	-4.88%	-35.39%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:3955	58Neutral	JPY 8.80B	25.30	―	3.41%	-2.18%	-68.23%
JP:7901	56Neutral	JPY 897.23M	4.61	―	―	-0.72%	―
JP:3945	55Neutral	JPY 2.94B	4.26	―	5.79%	1.07%	-31.39%
JP:9929	53Neutral	JPY 4.48B	36.42	―	2.59%	1.27%	53.89%

* Basic Materials Sector Average

Performance Comparison

JP:3892 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3892	Okayama Paper Industries Co., Ltd.	1565.00	56.94	3.78%
JP:3895	Havix Corporation	410.00	21.69	5.59%
JP:3945	Superbag Company, Limited	1901.00	-783.52	-29.19%
JP:3955	IMURA & Co.,Ltd.	879.00	-86.45	-8.95%
JP:7901	Matsumoto Inc.	781.00	-59.00	-7.02%
JP:9929	Heiwa Paper Co., Ltd.	464.00	26.25	6.00%

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: Oct 15, 2026

Okayama Paper Industries Co., Ltd. AI Stock Analysis