Heiwa Paper Co., Ltd. (9929) AI Stock Analysis

Heiwa Paper Co., Ltd.

(TSE/TYO:9929)

Select Model

Rating:49Neutral

Price Target:JPY 464.00▼(-0.22% Downside)

Action:reiterated

Date:08/18/26

The overall score is constrained by weak profitability and a very high P/E ratio, which are the most significant risks. The company's strong, low-debt balance sheet provides a foundation of stability, and recent cash flow improvement is a positive sign, but these are offset by bearish technical momentum and an expensive valuation relative to earnings.

Positive Factors

Conservative leverage and stable equityLow leverage and stable equity provide resilience for a distribution business exposed to inventory and working-capital needs. This financial flexibility can help Heiwa Paper absorb operating volatility and continue serving customers without excessive debt pressure.

Negative Factors

Very thin profitabilityExtremely thin operating and net margins leave limited protection against procurement-cost increases, pricing pressure or logistics inflation. Small changes in gross spread or operating expenses could therefore materially affect earnings and shareholder returns.

Heiwa Paper Co., Ltd. (9929) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.32B
Dividend Yield: 2.57%
Average Volume (3M): 1,970
Price to Earnings (P/E): 39.4
Beta (1Y): 0.15
Revenue Growth: 0.11%
EPS Growth: 14.91%
Country: Japan
Employees: 188
Sector: Basic Materials
Sector Strength: 61
Industry: Paper, Lumber & Forest Products

Heiwa Paper Co., Ltd. Business Overview & Revenue Model

Company Description

Heiwa Paper Co., Ltd., founded in 1946 and based in Tokyo, Japan, operates as a global paper trading enterprise. The company's activities involve the import, development, sale, and export of a diverse array of paper types. Its portfolio encompasses s...

How the Company Makes Money

Heiwa Paper makes money mainly through the sale and distribution of paper and related materials. Its core revenue model is wholesale distribution: it procures paper products from manufacturers, holds and manages inventory and logistics, and sells the...

Heiwa Paper Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is strong with low leverage (D/E 0.18) and growing equity, but profitability is weak with thin margins and declining revenue. Cash flow improved significantly, but historical volatility tempers the outlook.

Income Statement

35Negative

Balance Sheet

70Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.80B	15.80B	16.03B	16.12B	16.07B	15.62B
Gross Profit	3.29B	3.10B	3.11B	3.18B	3.13B	2.82B
EBITDA	287.25M	251.86M	304.78M	272.51M	241.09M	262.90M
Net Income	78.63M	78.63M	117.03M	136.33M	874.80M	87.26M
Balance Sheet
Total Assets	17.77B	17.77B	18.17B	19.04B	17.78B	15.90B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.22B	2.67B	2.84B	3.07B	3.32B
Total Debt	1.83B	1.83B	2.45B	2.46B	2.41B	2.15B
Total Liabilities	7.53B	7.53B	8.26B	8.94B	8.37B	7.37B
Stockholders Equity	10.25B	10.25B	9.92B	10.10B	9.41B	8.53B
Cash Flow
Free Cash Flow	0	533.05M	-264.78M	96.00M	-1.13B	228.18M
Operating Cash Flow	0	1.05B	260.77M	122.83M	121.11M	234.00M
Investing Cash Flow	0	-383.85M	-554.34M	-13.21M	-408.28M	-13.88M
Financing Cash Flow	0	-838.28M	-171.47M	-344.65M	43.13M	-123.12M

Heiwa Paper Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price465.00

Price Trends

50DMA468.29Negative

100DMA465.00Positive

200DMA461.92Positive

Market Momentum

MACD0.04Positive

RSI47.08Neutral

STOCH12.12Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9929, the sentiment is Neutral. The current price of 465.00 is below the 20-day moving average (MA) of 469.85, below the 50-day MA of 468.29, and above the 200-day MA of 461.92, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9929.

Heiwa Paper Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:9929 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3895	76Outperform	JPY 3.19B	5.68	―	3.96%	-7.71%	6.41%
JP:3892	75Outperform	JPY 8.27B	9.27	―	3.02%	-0.25%	2.38%
JP:3168	68Neutral	JPY 13.97B	4.99	―	4.07%	29.57%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:3955	60Neutral	JPY 8.77B	25.19	―	3.43%	-2.18%	-68.23%
JP:3945	59Neutral	JPY 3.21B	4.07	―	5.24%	1.57%	-21.97%
JP:9929	49Neutral	JPY 4.50B	39.38	―	2.57%	0.11%	14.91%

* Basic Materials Sector Average

Performance Comparison

JP:9929 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9929	Heiwa Paper Co., Ltd.	467.00	36.07	8.37%
JP:3168	Kurotani Corporation	984.00	441.91	81.52%
JP:3892	Okayama Paper Industries Co., Ltd.	1656.00	163.46	10.95%
JP:3895	Havix Corporation	404.00	12.80	3.27%
JP:3945	Superbag Company, Limited	2098.00	-580.80	-21.68%
JP:3955	IMURA & Co.,Ltd.	875.00	-76.86	-8.07%

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 18, 2026

Heiwa Paper Co., Ltd. AI Stock Analysis