Oji Holdings (3861) AI Stock Analysis

• Market Cap: $727.96B
• Dividend Yield: 3.27%
• Average Volume (3M): 4.57M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.57
• Revenue Growth: 9.02%
• EPS Growth: -8.77%
• Country: JP
• Employees: 38,322
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -3.86
• Shares Outstanding: 1,014,381,840
• 10 Day Avg. Volume: 4,213,930
• 30 Day Avg. Volume: 4,568,860
• PEG Ratio: -0.72
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $781.30
• Price Target Upside: 5.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥838.00 ▲(13.18%Upside)

Oji Holdings scores well due to strong technical analysis indicators, reflecting bullish momentum with the stock trading above key moving averages. Financial performance shows consistent revenue growth but faces challenges in profitability and cash flow. Valuation metrics are reasonable, with a fair P/E ratio and attractive dividend yield. The absence of earnings call and corporate events data did not affect the score.

Oji Holdings Business Overview & Revenue Model

Company Description

Oji Holdings Corporation, together with its subsidiaries, engages in the pulp and paper business in Japan and internationally. It operates in four segments: Household and Industrial Materials, Functional Materials, Forest Resources and Environment Marketing, and Printing and Communications Media. The Household and Industrial Materials segment offers containerboards, corrugated containers, boxboard and folding cartons, packaging papers, paper bags, household paper, and disposable diapers. This segment also provides tissue paper, toilet rolls, kitchen towels, wet wipes, and face masks. The Functional Materials segment offers specialty paper, thermal paper, adhesive products, and films. The Forest Resources and Environment Marketing segment provides pulp, energy, forest plantation, lumber processing, and fuels/chemicals, as well as offers other material procurement services. The Printing and Communications Media segment provides newsprint, printing, publication, and communication paper services. It also engages in the real estate, engineering, trading, logistics, businesses, etc. The company was formerly known as Oji Paper Co., Ltd. and changed its name to Oji Holdings Corporation in October 2012. Oji Holdings Corporation was founded in 1873 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Oji Holdings makes money through a diverse revenue model primarily driven by the production and sale of paper and paper-related products. The company's key revenue streams include sales of printing and writing paper, packaging materials, and specialty papers. Additionally, Oji Holdings generates income from its extensive forest resources, leveraging its own plantations to supply raw materials for its manufacturing processes, thus reducing costs and ensuring supply chain stability. The company also engages in significant international operations, expanding its market reach through strategic partnerships and acquisitions, which contribute to its revenue growth. Furthermore, Oji Holdings invests in research and development to innovate and create high-value-added products, enhancing its competitive advantage and profitability.

Oji Holdings Financial Statement Overview

Summary

Oji Holdings exhibits consistent revenue growth but faces challenges in maintaining profitability margins and cash flow stability. Rising debt levels could pose future risks.

Income Statement

The company exhibits moderate growth with revenue increasing from the previous year. Gross profit margin is stable at around 18% over the years, while net profit margin shows a decreasing trend, currently at 2.5%. EBIT and EBITDA margins also reflect a slight decrease, indicating some pressure on operational efficiency. Despite these challenges, the company manages to maintain a positive revenue growth trajectory.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of approximately 0.82, indicating a balanced approach to leveraging. However, the increase in total debt over recent years poses a potential risk. Return on equity has decreased from 9.8% to 4.2%, highlighting a reduction in profitability relative to shareholders' equity. The equity ratio remains stable, reflecting a consistent capital structure.

Cash Flow

Cash flow analysis shows a significant decrease in free cash flow, turning negative in the most recent year, which could indicate challenges in sustaining capital investments. The operating cash flow to net income ratio remains favorable, suggesting efficient cash generation from operations. However, the negative free cash flow to net income ratio signals potential cash constraints.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.85T	1.70T	1.71T	1.47T	1.36T
Gross Profit	338.85B	324.08B	340.00B	343.95B	327.43B
EBITDA	187.18B	166.15B	165.02B	202.64B	151.53B
Net Income	46.17B	50.81B	56.48B	87.51B	49.63B
Balance Sheet
Total Assets	2.64T	2.44T	2.30T	2.05T	1.98T
Cash, Cash Equivalents and Short-Term Investments	65.86B	62.86B	57.07B	55.82B	136.25B
Total Debt	903.39B	736.72B	788.34B	650.51B	647.68B
Total Liabilities	1.50T	1.35T	1.33T	1.18T	1.12T
Stockholders Equity	1.10T	1.07T	937.08B	851.39B	751.18B
Cash Flow
Free Cash Flow	-49.51B	87.88B	-75.85B	44.93B	32.43B
Operating Cash Flow	94.42B	202.90B	18.26B	143.59B	127.11B
Investing Cash Flow	-154.91B	-118.00B	-123.27B	-92.57B	-91.56B
Financing Cash Flow	60.97B	-84.90B	101.79B	-136.00B	19.93B

Oji Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 740.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3861, the sentiment is Positive. The current price of 740.4 is above the 20-day moving average (MA) of 735.20, above the 50-day MA of 703.07, and above the 200-day MA of 619.16, indicating a neutral trend. The MACD of 13.21 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 21.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3861.

Oji Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3861	74 Outperform	$727.96B	15.52	4.18%	3.27%	9.02%	-8.77%
Sector *	44 Neutral	AU$1.50B	-6.14	-41.37%	3.91%	-3.45%	-43.04%
NIJPF	―	$854.10M	28.31	0.90%	0.76%	―	―
HPE	―	€946.93M	9.93	5.99%	2.40%	―	―
DPR	―	€791.17M	―	-4.63%	1.80%	―	―
9274	78 Outperform	¥48.45B	6.42		3.83%	3.97%	-21.00%
8032	77 Outperform	¥93.21B	10.19		3.99%	3.80%	-22.03%

Oji Holdings Corporate Events

Oji Holdings Reports Progress on Treasury Share Repurchase

Oji Holdings Corporation announced the status of its treasury share repurchase, revealing that it acquired 2,490,000 shares at a cost of JPY 1,736,627,240 between June 1 and June 30, 2025. This repurchase is part of a larger plan approved by the Board of Directors to buy back up to 100 million shares, representing 10.1% of the outstanding shares, with a total budget of JPY 50 billion. As of June 30, 2025, the company has repurchased 64,171,300 shares, utilizing JPY 38,739,954,780 of the allocated budget. This strategic move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:3861) stock is a Buy with a Yen770.00 price target. To see the full list of analyst forecasts on Oji Holdings stock, see the JP:3861 Stock Forecast page.

Oji Holdings Updates on Treasury Share Repurchase Progress

Oji Holdings Corporation announced the status of its treasury share repurchase, revealing that it acquired 3,365,500 shares at a cost of JPY 2,242,213,640 between May 1 and May 31, 2025. This move is part of a larger repurchase plan approved in December 2024, aiming to buy back up to 100 million shares, reflecting the company’s strategy to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3861) stock is a Buy with a Yen770.00 price target. To see the full list of analyst forecasts on Oji Holdings stock, see the JP:3861 Stock Forecast page.

Oji Holdings Revises Director Remuneration Plan to Enhance Corporate Value

Oji Holdings Corporation announced a revision to its performance-linked and stock-based remuneration plan for directors, aiming to align director incentives with the company’s business performance and stock value. The revised plan, pending shareholder approval, includes increased performance-linked bonuses and stock-based remuneration, with restrictions on share transfers until directors’ retirement, potentially impacting the company’s operational focus and stakeholder interests.

The most recent analyst rating on (JP:3861) stock is a Buy with a Yen770.00 price target. To see the full list of analyst forecasts on Oji Holdings stock, see the JP:3861 Stock Forecast page.

Oji Holdings Proposes Amendments to Enhance Management Structure

Oji Holdings Corporation has announced proposed amendments to its Articles of Incorporation, aiming to clarify the roles of its corporate officers and enhance flexibility in its management structure. These changes are intended to improve the supervisory functions of its Board of Directors and allow for more dynamic leadership by enabling Directors and Corporate Officers to interchange roles, thereby potentially strengthening the company’s operational efficiency and governance.

The most recent analyst rating on (JP:3861) stock is a Buy with a Yen770.00 price target. To see the full list of analyst forecasts on Oji Holdings stock, see the JP:3861 Stock Forecast page.

Oji Holdings Reports Decline in Income but Expands Consolidation

Oji Holdings Corporation reported a significant decline in comprehensive income for the fiscal year ending March 31, 2025, with a decrease of 41.8% compared to the previous year. Despite this, the company has expanded its scope of consolidation by including 21 new companies, which may impact its future financial performance and market positioning.

The most recent analyst rating on (JP:3861) stock is a Buy with a Yen770.00 price target. To see the full list of analyst forecasts on Oji Holdings stock, see the JP:3861 Stock Forecast page.

Oji Holdings Announces Progress in Share Repurchase Program

Oji Holdings Corporation announced the status of its treasury share repurchase, with 8,927,200 shares acquired at a cost of JPY 5,457,036,010 during April 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 100 million shares by December 2025, aiming to enhance shareholder value and optimize capital structure.