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Mitsubishi Paper Mills (JP:3864)
:3864
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Mitsubishi Paper Mills (3864) AI Stock Analysis

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JP:3864

Mitsubishi Paper Mills

(Frankfurt:3864)

Rating:66Neutral
Price Target:
¥685.00
▲(1.63%Upside)
The overall score is driven by a solid valuation with a low P/E ratio and reasonable dividend yield, suggesting potential undervaluation. Financial performance is stable, but challenges in revenue and cash flow growth present risks. Technical analysis indicates neutral momentum, providing a balanced outlook.

Mitsubishi Paper Mills (3864) vs. iShares MSCI Japan ETF (EWJ)

Mitsubishi Paper Mills Business Overview & Revenue Model

Company DescriptionMitsubishi Paper Mills (3864) is a prominent Japanese company specializing in the production and sale of paper products and related technologies. The company operates in various sectors including paper manufacturing, imaging, and information systems, as well as functional materials. It offers a diverse range of products such as printing papers, communication papers, specialty papers, and imaging media, catering to both industrial and consumer markets.
How the Company Makes MoneyMitsubishi Paper Mills generates revenue primarily through the sale of its paper products, which include printing and communication papers used extensively in publishing and office environments. A significant portion of their earnings comes from specialty papers and imaging media, which are utilized in sectors such as photography, medical imaging, and high-end printing applications. The company also earns income from its functional materials division, which develops and sells advanced technologies and materials for a variety of industries, including electronics and automotive. Strategic partnerships and collaborations with global companies further enhance its reach and contribute to revenue growth. Additionally, Mitsubishi Paper Mills focuses on innovation and sustainability, which helps in maintaining competitive advantages and opening new revenue opportunities.

Mitsubishi Paper Mills Financial Statement Overview

Summary
Mitsubishi Paper Mills shows financial stability with improving profit margins and a solid capital structure. However, challenges in maintaining sales growth and declining free cash flow indicate potential hurdles in revenue growth and cash generation. Moderate leverage and decent margins provide a foundation for future growth.
Income Statement
65
Positive
The company has shown a recovery with improving profit margins. The gross profit margin for 2025 is at 14.3%, and the net profit margin is at 2.5%, indicating profitability despite a decline in total revenue from 2024 to 2025. EBIT and EBITDA margins are stable at 2.6% and 8.9% respectively. However, revenue has decreased year-over-year, reflecting challenges in maintaining sales growth.
Balance Sheet
70
Positive
The balance sheet is relatively stable with a debt-to-equity ratio of 0.85, indicating moderate leverage. The company has improved its equity base with an equity ratio of 40.9%, reflecting a solid capital structure. Return on equity is modest at 5.1%, suggesting moderate returns to shareholders.
Cash Flow
60
Neutral
The cash flow position is stable, with an operating cash flow to net income ratio of 1.12, indicating decent cash conversion efficiency. However, free cash flow has declined, and the free cash flow to net income ratio is low at 0.51, showing potential constraints in generating free cash after capital expenditures. The free cash flow growth rate is negative, highlighting challenges in cash generation.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue175.94B193.46B209.54B181.92B162.32B
Gross Profit25.16B28.15B27.25B25.77B22.59B
EBITDA15.61B15.57B7.86B10.63B7.79B
Net Income4.34B4.17B-571.00M1.10B-2.53B
Balance Sheet
Total Assets208.22B235.38B227.06B215.88B209.44B
Cash, Cash Equivalents and Short-Term Investments6.24B10.01B8.32B9.05B15.70B
Total Debt72.33B85.06B100.17B93.36B99.08B
Total Liabilities122.93B144.43B155.02B146.27B146.54B
Stockholders Equity85.26B90.93B72.03B69.61B62.90B
Cash Flow
Free Cash Flow2.23B11.80B-7.27B-4.56B9.08B
Operating Cash Flow4.85B13.49B-2.72B1.70B13.01B
Investing Cash Flow4.80B3.83B-3.56B-2.56B-2.10B
Financing Cash Flow-13.40B-16.26B5.21B-6.09B-4.51B

Mitsubishi Paper Mills Technical Analysis

Technical Analysis Sentiment
Positive
Last Price674.00
Price Trends
50DMA
628.68
Positive
100DMA
655.09
Positive
200DMA
593.19
Positive
Market Momentum
MACD
6.10
Negative
RSI
67.42
Neutral
STOCH
95.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3864, the sentiment is Positive. The current price of 674 is above the 20-day moving average (MA) of 640.15, above the 50-day MA of 628.68, and above the 200-day MA of 593.19, indicating a bullish trend. The MACD of 6.10 indicates Negative momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 95.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3864.

Mitsubishi Paper Mills Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥22.76B12.48
4.11%2.95%-53.11%
74
Outperform
$732.22B15.624.18%3.25%9.02%-8.77%
71
Outperform
$128.94B28.380.90%0.90%1.30%-80.06%
70
Outperform
€171.75B11.075.99%2.20%2.92%84.86%
70
Neutral
¥180.63B9.984.42%2.84%5.31%-43.89%
66
Neutral
¥29.96B6.804.96%2.28%-9.06%4.04%
57
Neutral
€139.97B-4.63%1.66%-0.41%-348.22%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3864
Mitsubishi Paper Mills
674.00
64.41
10.57%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,707.00
402.82
30.89%
JP:3865
Hokuetsu Corporation
1,043.00
-57.98
-5.27%
JP:3880
Daio Paper Corporation
857.00
34.58
4.20%
JP:3863
Nippon Paper
1,131.00
235.59
26.31%
JP:3861
Oji Holdings
744.70
185.83
33.25%

Mitsubishi Paper Mills Corporate Events

Mitsubishi Paper Mills Restructures German Subsidiary, Records Losses
Jul 29, 2025

Mitsubishi Paper Mills Limited has announced a business restructuring at its German subsidiary, Mitsubishi Hi-tec Paper Europe GmbH, which includes a voluntary retirement program affecting approximately 140 employees. The restructuring has resulted in the recording of an extraordinary loss of approximately 1.6 billion yen due to severance payments and reemployment support expenses, impacting the company’s financial results for the second quarter of FY2026/3.

Mitsubishi Paper Mills Announces Shareholder Relations and Business Transactions
Jun 27, 2025

Mitsubishi Paper Mills Limited announced its relationship with Oji Holdings Corporation, which holds 33% of its voting rights. The company ensures independence in its operations despite this significant shareholding. Transactions with affiliated companies, such as MPM Oji Eco Energy Co., Ltd. and OCM Fiber Trading Co., Ltd., involve power generation and the purchase of imported chips, reflecting the company’s strategic business engagements.

Mitsubishi Paper Mills to Receive Subsidiary Dividend Boost
Jun 27, 2025

Mitsubishi Paper Mills Limited announced that it will receive a dividend of 3,525 million yen from its subsidiary, Mitsubishi Oji Paper Sales Co., Ltd., as part of its non-consolidated year-end closing for the fiscal year ending March 2026. This dividend will be recorded as non-operating income in the company’s non-consolidated financial statements, but it will not affect the consolidated financial results, highlighting a stable financial strategy without impacting overall group performance.

Mitsubishi Paper Mills Announces Restructuring of German Subsidiary
Jun 5, 2025

Mitsubishi Paper Mills Limited is restructuring its German subsidiary, Mitsubishi Hi-tec Paper Europe GmbH, due to economic stagnation in Europe and intense competition in the thermal paper sector. The restructuring includes a voluntary retirement program for approximately 140 employees, with reemployment support available, and is expected to impact the company’s financial forecast for FY2026/3.

Mitsubishi Paper Mills Announces Increased Dividends Amid Growth Plans
May 30, 2025

Mitsubishi Paper Mills Limited has announced a decision by its Board of Directors to distribute dividends from surplus, with a record date of March 31, 2025. The dividend per share has been increased to 15 yen from the previous year’s 10 yen, reflecting stable earnings and anticipated growth in the functional materials business as outlined in the new Medium-Term Management Plan.

Mitsubishi Paper Mills Unveils Ambitious Medium-Term Management Plan
May 14, 2025

Mitsubishi Paper Mills Limited has announced a medium-term management plan for fiscal years 2026 to 2028, aiming to enhance its technological capabilities and environmental contributions. The plan sets ambitious targets, including achieving net sales of 250 billion yen and an operating income of 20 billion yen by 2028, reflecting the company’s strategic focus on growth and sustainability.

Mitsubishi Paper Mills Receives Dividend from Subsidiary
May 14, 2025

Mitsubishi Paper Mills Limited announced the receipt of a 1,921 million yen dividend from its subsidiary, Mitsubishi Oji Paper Sales Co., Ltd., for the fiscal year ending March 31, 2025. This dividend, along with others totaling 3,597 million yen, is recognized as non-operating income in the company’s non-consolidated financial statements, with no impact on consolidated results.

Mitsubishi Paper Mills Updates Director Compensation Plan
May 14, 2025

Mitsubishi Paper Mills Limited announced a renewal and partial amendment of its performance-linked share-based remuneration plan for its directors and executives. The plan aims to align the interests of the directors with shareholders by tying compensation to company performance and stock value, encouraging long-term corporate value enhancement. The proposed changes include shifting performance assessment indicators from consolidated operating income to both consolidated net sales and operating income, reinforcing the focus on medium- to long-term performance improvements.

Mitsubishi Paper Mills Discontinues Anti-Takeover Policies
May 14, 2025

Mitsubishi Paper Mills Limited has decided to discontinue its anti-takeover policies, effective after the upcoming Annual General Meeting in June 2025. This decision follows a review of current trends in Japan and discussions with stakeholders, reflecting a shift towards contingency-based measures. The company remains committed to protecting corporate value and shareholder interests by ensuring adequate information and preparedness in the event of large-scale share purchases.

Mitsubishi Paper Mills Addresses Data Falsification and Implements Preventive Measures
May 14, 2025

Mitsubishi Paper Mills Limited has received an investigation report from a special committee regarding falsification of inspection data and failure to perform required inspections at its subsidiary, Mitsubishi Paper Engineering Co., Ltd. The investigation revealed multiple instances of data falsification across various facilities, affecting products such as pressboard, filter products, copier paper, and chemical-based paper. Despite these issues, no problems affecting the basic functions of delivered products were identified. The company has acknowledged management, organizational, and compliance issues as causes and has implemented measures to prevent recurrence, aiming to restore trust with stakeholders.

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: Jul 25, 2025