Hokuetsu Corporation (3865) AI Stock Analysis

• Market Cap: €167.72B
• Dividend Yield: 2.26%
• Average Volume (3M): 208.78K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.01
• Revenue Growth: 2.92%
• EPS Growth: 84.86%
• Country: JP
• Employees: 3,749
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 24.08
• Shares Outstanding: 188,053,120
• 10 Day Avg. Volume: 212,360
• 30 Day Avg. Volume: 208,783
• PEG Ratio: 0.14
• Price to Book (P/B): 0.94
• 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: €1,004.77
• Price Target Upside: 0.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥1,064.00 ▲(6.61%Upside)

The overall stock score is primarily driven by Hokuetsu Corporation's strong financial performance, which is offset by bearish technical indicators. While the company shows solid profitability and cash flow generation, the technical analysis suggests caution due to negative market momentum. The valuation is reasonable, but not enough to counteract the current technical weakness.

Hokuetsu Corporation Business Overview & Revenue Model

Company Description

Hokuetsu Corporation, listed under the ticker 3865, is a prominent player in the pulp and paper industry. The company is primarily engaged in the production and sale of various types of paper products, including printing and communication papers, specialty papers, and packaging materials. Hokuetsu Corporation operates across multiple sectors, including paper manufacturing, forestry, and logistics, and is committed to sustainable practices and innovation in its product offerings.

How the Company Makes Money

Hokuetsu Corporation generates revenue through the sale of its diverse range of paper products. The company operates a vertically integrated business model, which includes managing forestry resources, producing pulp, and manufacturing various paper grades. Key revenue streams include sales from printing and communication papers, which are used in books, magazines, and office stationery, and specialty papers, which cater to niche markets such as thermal and carbonless papers. Additionally, Hokuetsu Corporation earns revenue from packaging materials, servicing industries such as food, healthcare, and consumer goods. Strategic partnerships and investments in sustainable production technologies also contribute to the company's earnings, enabling it to meet the increasing demand for environmentally friendly products.

Hokuetsu Corporation Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
301.25B	297.06B	301.20B	261.62B	222.45B	264.62B
	Gross Profit
67.44B	60.15B	64.02B	61.13B	38.48B	51.48B
	EBIT
19.46B	15.27B	17.29B	20.45B	1.70B	11.21B
	EBITDA
22.98B	19.73B	29.28B	33.56B	16.31B	29.78B
	Net Income Common Stockholders
12.59B	8.40B	8.32B	21.21B	14.17B	8.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.97B	22.14B	18.06B	30.27B	29.85B	21.38B
	Total Assets
419.86B	415.63B	388.44B	376.96B	363.07B	344.73B
	Total Debt
99.57B	106.16B	105.13B	100.41B	115.44B	109.47B
	Net Debt
77.60B	84.02B	87.07B	70.14B	85.59B	88.09B
	Total Liabilities
162.80B	163.23B	162.50B	159.99B	167.66B	163.87B
	Stockholders Equity
256.38B	251.72B	225.30B	216.33B	194.80B	180.26B
Cash Flow		Free Cash Flow
0.00	7.77B	-11.48B	6.49B	7.40B	28.11B
	Operating Cash Flow
0.00	22.32B	1.75B	20.19B	23.76B	43.97B
	Investing Cash Flow
0.00	-15.49B	-12.75B	-1.65B	-19.57B	-20.20B
	Financing Cash Flow
0.00	-3.80B	-2.10B	-19.19B	4.36B	-17.26B

Hokuetsu Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 998.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3865, the sentiment is Negative. The current price of 998 is below the 20-day moving average (MA) of 1030.30, below the 50-day MA of 1091.44, and below the 200-day MA of 1386.41, indicating a bearish trend. The MACD of -33.05 indicates Negative momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of 30.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3865.

Hokuetsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3861	73 Outperform	$687.45B	14.66	4.18%	3.44%	9.02%	-7.71%
3708	72 Outperform	¥42.70B	12.10		3.23%	9.57%	-20.71%
8032	70 Outperform	¥89.93B	9.83		4.14%	3.80%	-22.03%
3863	63 Neutral	$122.70B	27.00	0.90%	0.89%	1.30%	-80.06%
3865	60 Neutral	€167.72B	10.81	5.99%	2.26%	2.92%	84.86%
3880	54 Neutral	¥136.32B	―	-4.63%	1.81%	-0.41%	-348.23%
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%

Hokuetsu Corporation Corporate Events

Hokuetsu Corporation Announces Executive Personnel Changes

Hokuetsu Corporation has announced executive personnel changes following a Board of Directors meeting. The new management structure, effective after the upcoming Ordinary General Meeting of Shareholders, includes appointments for key positions such as President and CEO, Senior Managing Directors, and Directors, indicating a strategic alignment to enhance operational efficiency and governance.

Hokuetsu Corporation Revamps Acquisition Response Strategy

Hokuetsu Corporation has decided to abolish its existing Contingency Response Policy, which was aimed at defending against large-scale acquisitions by specific shareholder groups, and replace it with a new policy that provides an advance warning mechanism applicable to a broader range of potential acquirers. This strategic shift is intended to enhance the company’s long-term corporate value and better align with shareholder interests, reflecting changes in the regulatory environment and the company’s shareholder composition.

Hokuetsu Corporation Proposes Amendment to Director Terms

Hokuetsu Corporation announced a proposal to amend its Articles of Incorporation, specifically changing the term of office for directors from two years to one year. This amendment aims to enhance management accountability, adapt swiftly to business environment changes, and strengthen shareholder trust.

Hokuetsu Corporation Announces New Substitute Audit Candidate

Hokuetsu Corporation has announced the appointment of Shoji Suzuki as a candidate for the substitute audit position following the resignation of Shu Mizuguchi. This appointment will be submitted for approval at the upcoming shareholders’ meeting, potentially impacting the company’s audit processes and corporate governance.