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AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (JP:3896)
:3896
Japanese Market
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AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (3896) AI Stock Analysis

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JP:3896

AWA PAPER & TECHNOLOGICAL COMPANY, Inc.

(3896)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
¥412.00
▲(25.23% Upside)
Action:Reiterated
Date:08/17/26
The score is held back mainly by financial durability concerns—rapidly rising leverage and persistently negative free cash flow despite improved operating cash flow. Offsetting this, technicals are moderately strong with the stock trading above key moving averages and positive momentum, while valuation is supportive due to a very low P/E.
Positive Factors
Revenue Growth Recovery
The return to revenue growth in consecutive years indicates renewed demand for the company’s specialty paper and functional sheet products, supporting a more stable operating base over the next several quarters.
Negative Factors
Rapidly Rising Leverage
The sharp increase in debt relative to equity has reduced financial flexibility and raises sensitivity to weaker profits or higher funding costs. This burden could constrain investment and shareholder returns if operating conditions soften.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Recovery
The return to revenue growth in consecutive years indicates renewed demand for the company’s specialty paper and functional sheet products, supporting a more stable operating base over the next several quarters.
Read all positive factors

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (3896) vs. iShares MSCI Japan ETF (EWJ)

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Business Overview & Revenue Model

Company Description
Awa Paper & Technological Company, Inc. operates as a global enterprise, specializing in the manufacturing and distribution of a diverse range of papers and advanced technological materials. Its comprehensive product lineup encompasses various fil...
How the Company Makes Money
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AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Financial Statement Overview

Summary
Revenue returned to growth in 2025–2026 and earnings rebounded in 2026, but profitability has been volatile. Balance-sheet risk is elevated as debt rose sharply (to ~¥14.1B in 2026) and leverage worsened (debt/equity up to ~2.34x in 2025). Cash flow is the weakest area: free cash flow has been persistently negative since 2024, increasing funding and flexibility risk alongside higher leverage.
Income Statement
54
Neutral
Balance Sheet
42
Neutral
Cash Flow
33
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue19.37B18.49B17.12B16.12B17.31B15.02B
Gross Profit2.92B2.52B2.74B2.57B2.73B2.61B
EBITDA1.74B1.33B1.09B1.15B1.22B1.04B
Net Income1.13B753.82M35.87M52.45M242.67M282.82M
Balance Sheet
Total Assets27.97B29.00B27.20B21.25B16.27B15.53B
Cash, Cash Equivalents and Short-Term Investments1.69B1.85B988.73M1.11B539.97M555.89M
Total Debt13.06B14.07B12.60B7.75B4.12B4.41B
Total Liabilities19.04B20.10B19.62B14.37B9.81B9.16B
Stockholders Equity6.51B6.40B5.38B5.13B4.95B4.54B
Cash Flow
Free Cash Flow0.00-332.54M-4.92B-2.95B89.07M1.29B
Operating Cash Flow0.002.21B160.87M792.17M762.45M1.52B
Investing Cash Flow0.00-2.84B-5.18B-3.77B-360.68M-316.05M
Financing Cash Flow0.001.38B4.82B3.51B-459.53M-1.29B

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price329.00
Price Trends
50DMA
374.60
Positive
100DMA
398.71
Positive
200DMA
392.35
Positive
Market Momentum
MACD
8.83
Negative
RSI
62.95
Neutral
STOCH
67.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3896, the sentiment is Positive. The current price of 329 is below the 20-day moving average (MA) of 392.90, below the 50-day MA of 374.60, and below the 200-day MA of 392.35, indicating a bullish trend. The MACD of 8.83 indicates Negative momentum. The RSI at 62.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3896.

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥82.11B16.522.67%-0.03%30.67%
62
Neutral
¥748.60B12.445.27%4.08%0.22%208.36%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
57
Neutral
¥53.30B9.782.17%2.31%-8.09%76.25%
57
Neutral
¥8.87B6.971.90%7.74%82.31%
56
Neutral
¥4.11B3.659.19%
52
Neutral
¥163.21B20.303.83%1.53%1.33%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
412.00
20.00
5.10%
JP:3864
Mitsubishi Paper Mills
1,199.00
536.35
80.94%
JP:3861
Oji Holdings
881.50
103.21
13.26%
JP:3880
Daio Paper Corporation
983.00
114.53
13.19%
JP:3708
Tokushu Tokai Paper Co., Ltd.
2,191.00
816.98
59.46%
JP:3878
Tomoegawa Corporation
877.00
148.62
20.40%
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