IMURA & Co.,Ltd. (3955) AI Stock Analysis

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IMURA & Co.,Ltd.

(TSE/TYO:3955)

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Rating:53Neutral

Price Target:JPY 882.00▲(0.34% Upside)

Action:reiterated

Date:11/07/26

Overall score reflects mixed fundamentals led by weak and volatile cash flow (negative free cash flow and weak cash conversion) and a sharp recent revenue decline, partially offset by a comparatively strong balance sheet with manageable leverage. Technicals and valuation are largely neutral, with a supportive dividend yield but no clear momentum or bargain signal.

Positive Factors

Manageable LeverageLow historical leverage and continued equity growth give IMURA financial flexibility to support operations and asset investment. Although debt has risen, the current balance-sheet position appears capable of absorbing moderate earnings pressure without making financial obligations the central constraint on the business.

Negative Factors

Sharp Revenue ContractionA sharp recent revenue contraction following several years of uneven performance reduces confidence in near-term demand and makes fixed operating costs harder to absorb. If sales do not stabilize, the weaker revenue base could continue limiting earnings growth and investment capacity.

IMURA & Co.,Ltd. (3955) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.77B
Dividend Yield: 3.41%
Average Volume (3M): 2,796
Price to Earnings (P/E): 25.3
Beta (1Y): 0.25
Revenue Growth: -2.18%
EPS Growth: -68.23%
Country: Japan
Employees: 973
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

IMURA & Co.,Ltd. Business Overview & Revenue Model

Company Description

Operating primarily in Japan, IMURA & Co.,Ltd. specializes in the manufacturing and distribution of paper and various other products. The company organizes its business across several divisions, including Package Solutions, Mailing Services, and othe...

How the Company Makes Money

IMURA & Co.,Ltd. makes money primarily by manufacturing and selling envelopes and related paper products to corporate and institutional customers. Revenue is generated through (1) sales of ready-made/standard envelopes distributed through commercial...

IMURA & Co.,Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a strength with still-manageable leverage (debt-to-equity ~0.27) and equity growth, but the latest period saw a sharp revenue contraction (-43.8%) and modest net margins (~3%–5%). The biggest drag is cash flow quality: weak cash conversion (operating cash flow ~0.12x net income) and materially negative free cash flow in the latest period.

Income Statement

56Neutral

Balance Sheet

70Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	21.45B	21.83B	20.90B	20.87B	21.74B	20.23B
Gross Profit	5.04B	5.42B	5.47B	5.49B	5.66B	5.06B
EBITDA	1.70B	2.04B	2.16B	1.99B	2.07B	1.70B
Net Income	349.00M	954.00M	771.00M	951.00M	1.02B	994.00M
Balance Sheet
Total Assets	27.78B	28.16B	23.35B	20.56B	19.67B	19.81B
Cash, Cash Equivalents and Short-Term Investments	2.11B	2.67B	2.82B	3.14B	2.76B	3.98B
Total Debt	5.18B	4.84B	2.19B	71.00M	82.00M	93.00M
Total Liabilities	9.54B	10.20B	6.59B	4.33B	4.33B	5.00B
Stockholders Equity	18.13B	17.87B	16.59B	16.21B	15.32B	14.79B
Cash Flow
Free Cash Flow	0	-2.42B	-128.00M	531.00M	-509.00M	1.19B
Operating Cash Flow	0	1.03B	1.71B	1.97B	807.00M	1.56B
Investing Cash Flow	0	-3.53B	-3.03B	-1.24B	-1.34B	-189.00M
Financing Cash Flow	0	2.37B	1.05B	-314.00M	-694.00M	-325.00M

IMURA & Co.,Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price879.00

Price Trends

50DMA867.22Positive

100DMA845.01Positive

200DMA867.04Positive

Market Momentum

MACD2.65Positive

RSI54.45Neutral

STOCH61.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3955, the sentiment is Positive. The current price of 879.00 is above the 20-day moving average (MA) of 876.65, above the 50-day MA of 867.22, and above the 200-day MA of 867.04, indicating a bullish trend. The MACD of 2.65 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3955.

IMURA & Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3955 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3892	75Outperform	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:7901	56Neutral	JPY 897.23M	4.61	―	―	-0.72%	―
JP:3945	55Neutral	JPY 2.94B	4.26	―	5.79%	1.07%	-31.39%
JP:3955	53Neutral	JPY 8.80B	25.30	―	3.41%	-2.18%	-68.23%
JP:9929	53Neutral	JPY 4.48B	36.42	―	2.59%	1.27%	53.89%

* Basic Materials Sector Average

Performance Comparison

JP:3955 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3955	IMURA & Co.,Ltd.	879.00	-86.45	-8.95%
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: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: Nov 07, 2026

IMURA & Co.,Ltd. AI Stock Analysis