Mitsubishi Paper Mills (3864) AI Stock Analysis

• Market Cap: €28.58B
• Dividend Yield: 2.33%
• Average Volume (3M): 228.50K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.90
• Revenue Growth: -9.06%
• EPS Growth: 4.04%
• Country: JP
• Employees: 2,832
• Sector: Industrials
• Sector Strength: 89
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 44.32
• Shares Outstanding: 44,741,432
• 10 Day Avg. Volume: 227,840
• 30 Day Avg. Volume: 228,500
• PEG Ratio: 0.18
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.12
• 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: €702.24
• Price Target Upside: 10.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥678.00 ▲(6.27%Upside)

The overall stock score reflects a solid financial foundation, with improving profitability and a strong capital structure. Valuation metrics suggest the stock is undervalued, which could appeal to value investors. However, the technical analysis indicates some bearish momentum, highlighting potential short-term volatility.

Mitsubishi Paper Mills Business Overview & Revenue Model

Company Description

Mitsubishi Paper Mills Limited, together with its subsidiaries, produces, processes, and sells paper, pulp, and photosensitive materials in Japan, Europe, rest of Asia, North America, and internationally. The company operates in four segments: Paper and Pulp, Imaging Media, Speciality Materials, and Warehouse and Transportation. It offers writing and printing papers, photo-sensitive printing plates, inkjet papers, photographic materials, direct platemaking systems and graphic arts film materials, inkjet media, rewritable thermal recording materials, battery separators, air filters, production inkjet papers, electronic materials, silver nano particle inks, SF films, dye sensitized solar cells, and functional papers. The company also provides warehousing and carrying services; thermal engineering, heat management, and cooling solutions; Mydome, a thick nonwoven fabric; and SaiVis, a screen film. In addition, it is involved in engineering business. The company was formerly known as Mitsubishi Paper Mills Company and changed its name to Mitsubishi Paper Mills Limited in November 1917. Mitsubishi Paper Mills Limited was founded in 1898 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mitsubishi Paper Mills generates revenue primarily through the sale of its diverse range of paper products, which include printing paper, specialty paper, and imaging media. The company caters to industries such as printing, packaging, and imaging by providing high-quality and innovative solutions. Key revenue streams include the domestic and international sale of these paper products, with a significant portion of earnings coming from export markets. Mitsubishi Paper Mills also benefits from strategic partnerships and collaborations with other companies and industries, enhancing its product offerings and market reach. Additionally, the company's commitment to sustainability and environmentally friendly practices positions it favorably in markets that prioritize eco-friendly products, further contributing to its financial performance.

Mitsubishi Paper Mills Financial Statement Overview

Summary

Mitsubishi Paper Mills is showing signs of financial stability with improving profitability and a solid capital structure. However, declining revenue and free cash flow indicate potential challenges in sales and cash generation. The moderate leverage and decent margins provide a foundation for future growth, but the company needs to address revenue growth and cash flow improvements to enhance financial performance.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	181.45B	175.94B	193.46B	209.54B	181.92B	162.32B
Gross Profit	26.07B	25.16B	28.15B	27.25B	25.77B	22.59B
EBITDA	18.82B	15.61B	15.57B	7.86B	10.63B	7.79B
Net Income	7.03B	4.34B	4.17B	-571.00M	1.10B	-2.53B
Balance Sheet
Total Assets	226.26B	208.22B	235.38B	227.06B	215.88B	209.44B
Cash, Cash Equivalents and Short-Term Investments	12.97B	6.24B	10.01B	8.32B	9.05B	15.70B
Total Debt	79.21B	72.33B	85.06B	100.17B	93.36B	99.08B
Total Liabilities	135.12B	122.93B	144.43B	155.02B	146.27B	146.54B
Stockholders Equity	91.13B	85.26B	90.93B	72.03B	69.61B	62.90B
Cash Flow
Free Cash Flow	0.00	2.23B	11.80B	-7.27B	-4.56B	9.08B
Operating Cash Flow	0.00	4.85B	13.49B	-2.72B	1.70B	13.01B
Investing Cash Flow	0.00	4.80B	3.83B	-3.56B	-2.56B	-2.10B
Financing Cash Flow	0.00	-13.40B	-16.26B	5.21B	-6.09B	-4.51B

Mitsubishi Paper Mills Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 638.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 638 is above the 20-day moving average (MA) of 617.55, below the 50-day MA of 656.88, and above the 200-day MA of 583.43, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 88.49 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	€9.21B	16.20	3.99%	3.38%	2.85%	-16.23%
3864	65 Neutral	€28.58B	6.49	4.96%	2.33%	-9.06%	4.04%
NIJPF		$818.26M	27.77	0.90%	<0.01%	―	―
OJIPF		$5.01B	16.39	4.18%	0.02%	―	―
HPE		€1.01B	10.63	5.99%	2.16%	―	―
DPR		€796.82M	―	-4.63%	1.69%	―	―
3877	75 Outperform	¥21.75B	11.92		4.30%	2.95%	-53.11%

Mitsubishi Paper Mills Corporate Events

Mitsubishi Paper Mills Announces Shareholder Relations and Business Transactions

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

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

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

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

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

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

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

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

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.