Oji Holdings (3861) AI Stock Analysis

• Market Cap: ¥706.86B
• Dividend Yield: 3.36%
• Average Volume (3M): 4.93M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.57
• Revenue Growth: 9.02%
• EPS Growth: -8.77%
• Country: JP
• Employees: 38,322
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -3.86
• Shares Outstanding: 1,014,381,840
• 10 Day Avg. Volume: 5,330,100
• 30 Day Avg. Volume: 4,927,600
• PEG Ratio: -0.26
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.85
• 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: ¥784.43
• Price Target Upside: 9.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥758.00 ▲(6.22%Upside)

The overall stock score of 73 reflects strong technical momentum and fair valuation, despite mixed financial performance. The company's stable revenue growth is offset by challenges in maintaining profitability and managing rising debt levels.

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 its diverse portfolio of products and services in various sectors. The primary revenue streams include the sale of pulp and paper products, which encompasses printing and writing papers that are used in offices, books, and educational materials. The packaging sector generates income through the production and sale of corrugated containers and packaging materials, which are essential for logistics and shipping industries. Additionally, the company earns revenue from its functional materials segment, which includes specialty papers and films used in industrial applications. Oji Holdings also benefits from its forest resources division by managing and selling timber and related products. Moreover, the company has a real estate segment that contributes to its earnings through property development and management. Strategic partnerships and investments in sustainable practices and innovations further support the company's financial growth.

Oji Holdings Financial Statement Overview

Summary

Oji Holdings displays consistent revenue growth, but faces challenges with declining profitability margins and cash flow stability. Although the balance sheet remains stable, rising debt levels pose a future risk.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.79T	1.85T	1.70T	1.71T	1.47T	1.36T
Gross Profit	341.97B	338.85B	324.08B	340.00B	343.95B	327.43B
EBITDA	171.16B	187.18B	166.15B	165.02B	202.64B	151.53B
Net Income	58.77B	46.17B	50.81B	56.48B	87.51B	49.63B
Balance Sheet
Total Assets	2.60T	2.64T	2.44T	2.30T	2.05T	1.98T
Cash, Cash Equivalents and Short-Term Investments	27.99B	65.86B	62.86B	57.07B	55.82B	136.25B
Total Debt	875.76B	903.39B	736.72B	788.34B	650.51B	647.68B
Total Liabilities	1.49T	1.50T	1.35T	1.33T	1.18T	1.12T
Stockholders Equity	1.08T	1.10T	1.07T	937.08B	851.39B	751.18B
Cash Flow
Free Cash Flow	0.00	-49.51B	87.88B	-75.85B	44.93B	32.43B
Operating Cash Flow	0.00	94.42B	202.90B	18.26B	143.59B	127.11B
Investing Cash Flow	0.00	-154.91B	-118.00B	-123.27B	-92.57B	-91.56B
Financing Cash Flow	0.00	60.97B	-84.90B	101.79B	-136.00B	19.93B

Oji Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 713.60
• 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 713.6 is above the 20-day moving average (MA) of 699.05, above the 50-day MA of 677.06, and above the 200-day MA of 604.87, indicating a bullish trend. The MACD of 11.18 indicates Positive momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 49.11 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	73 Outperform	¥706.86B	15.07	4.18%	3.36%	9.02%	-8.77%
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.17%	-4.78%	-42.91%
NIJPF		$822.86M	27.48	0.90%	<0.01%	―	―
HPE		€1.03B	10.81	5.99%	2.12%	―	―
DPR		€778.66M	―	-4.63%	1.76%	―	―
9274	78 Outperform	¥47.10B	6.24		4.89%	3.97%	-21.00%
8032	77 Outperform	¥93.06B	10.17		4.00%	3.80%	-22.03%

Oji Holdings Corporate Events

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.

Oji Holdings Unveils Medium-Term Management Plan 2027 Summary

Oji Holdings Corporation has announced a summary of its Medium-Term Management Plan 2027, which will begin in fiscal year 2025. The full details of this plan are set to be released on May 30, 2025, indicating the company’s strategic direction and potential impact on its operations and market positioning.

Oji Holdings Announces Treasury Share Repurchase

Oji Holdings Corporation announced the repurchase of 4,158,300 treasury shares for JPY 2.63 billion, as part of a resolution by its Board of Directors. This move is part of a larger plan to repurchase up to 100 million shares by December 2025, reflecting the company’s strategic financial management and potential impact on shareholder value.