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Hokuetsu Corporation
(3865)
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Rating:57Neutral
Price Target:
¥923.00
▼(-0.22% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by mixed financial performance (cyclical profits and volatile/free cash flow, despite improving leverage). Technical indicators add pressure with the stock trading below major moving averages and negative MACD. Valuation helps offset these risks with a low P/E and a moderate dividend yield.
Positive Factors
Improving Leverage
Debt-to-equity falling to ~0.34 by FY2025 materially reduces financial leverage and interest burden, improving resilience to cyclical downturns. Lower leverage increases capacity for capital allocation (capex, dividends, debt paydown) and borrowing flexibility over the medium term.
Negative Factors
Cyclical Profitability & Margin Compression
Material margin compression from the FY2022 peak indicates profitability is cyclical and fragile. Persistent margin swings reduce earnings visibility, force conservative capital allocation in weak periods, and make it harder to sustain returns on capital across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Leverage
Debt-to-equity falling to ~0.34 by FY2025 materially reduces financial leverage and interest burden, improving resilience to cyclical downturns. Lower leverage increases capacity for capital allocation (capex, dividends, debt paydown) and borrowing flexibility over the medium term.
Read all positive factors
Hokuetsu Corporation (3865) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥141.62B
Dividend Yield2.91%
Average Volume (3M)187.20K
Price to Earnings (P/E)21.9
Beta (1Y)0.75
Revenue Growth-5.23%
EPS Growth-55.21%
CountryJP
Employees3,728
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)43.59
Shares Outstanding163,053,120
10 Day Avg. Volume151,710
30 Day Avg. Volume187,203
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.61
Price to Sales (P/S)0.53
P/FCF Ratio-18.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥820.00Price Target Upside-11.35% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)45.3
Revenue Forecast (FY)¥313.00B
Hokuetsu Corporation Business Overview & Revenue Model
Company Description
Hokuetsu Corporation, founded in Tokyo, Japan, in 1907, is a global producer and supplier of an extensive range of paper and paperboard products. The company's reach extends across Japan, the United States, China, the wider Asian region, and other...
How the Company Makes Money
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Hokuetsu Corporation Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 287.74B | 305.72B | 297.06B | 301.20B | 261.62B |
| Gross Profit | 56.46B | 68.80B | 60.15B | 64.02B | 61.13B |
| EBITDA | 26.40B | 35.61B | 19.72B | 26.55B | 41.10B |
| Net Income | 7.30B | 15.53B | 8.39B | 8.32B | 21.21B |
Balance Sheet | |||||
| Total Assets | 420.57B | 418.88B | 415.69B | 388.44B | 376.96B |
| Cash, Cash Equivalents and Short-Term Investments | 30.12B | 27.64B | 22.14B | 18.06B | 30.27B |
| Total Debt | 97.35B | 90.63B | 106.31B | 105.13B | 100.41B |
| Total Liabilities | 167.82B | 153.01B | 163.22B | 162.49B | 159.98B |
| Stockholders Equity | 251.89B | 265.13B | 251.79B | 225.30B | 216.33B |
Cash Flow | |||||
| Free Cash Flow | -8.07B | 22.10B | 7.77B | -11.48B | 6.49B |
| Operating Cash Flow | 10.19B | 40.93B | 22.32B | 1.75B | 20.19B |
| Investing Cash Flow | -3.28B | -18.82B | -15.49B | -12.75B | -1.65B |
| Financing Cash Flow | -6.25B | -19.12B | -3.80B | -2.10B | -19.19B |
Hokuetsu Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | ¥143.27B | 26.85 | ― | 3.19% | 9.61% | -3.44% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥743.59B | 12.35 | 5.27% | 4.08% | 0.22% | 208.36% | |
57 Neutral | ¥141.62B | 21.89 | 2.79% | 2.81% | -5.23% | -55.21% | |
57 Neutral | ¥51.21B | 9.39 | 2.17% | 2.31% | -8.09% | 76.25% | |
52 Neutral | ¥164.06B | 17.08 | 2.43% | 0.99% | 2.22% | 27.47% | |
49 Neutral | ¥161.55B | 20.10 | 3.83% | 1.53% | 1.33% | ― |
* Basic Materials Sector Average
JP:3865
Hokuetsu Corporation
895.00
-94.55
-9.55%
JP:3864
Mitsubishi Paper Mills
1,152.00
502.11
77.26%
JP:3863
Nippon Paper
1,420.00
273.64
23.87%
JP:3861
Oji Holdings
875.60
129.22
17.31%
JP:3880
Daio Paper Corporation
973.00
123.26
14.51%
JP:8032
Japan Pulp and Paper Co. Ltd.
1,247.00
593.72
90.88%
Hokuetsu Corporation Corporate Events
Hokuetsu Sets Terms for 2026 Director Stock Options
Jul 16, 2026
Hokuetsu Corporation has set the pay-in amount for its 2026 stock acquisition rights to be granted as stock options to internal directors, excluding outside directors. Each stock acquisition right is priced at 371,000 yen, corresponding to 742 yen...
Hokuetsu Introduces Long-Term Stock Option Plan for Directors
Jun 26, 2026
Hokuetsu Corporation’s board has approved the issuance of 70 stock acquisition rights as stock options for directors, each tied to 500 shares of common stock, with an exercise price of 1 yen per share and an exercise period running from July...
Hokuetsu Profit Hit by Weak Pulp and Paper Demand but Equity Affiliates Lift Earnings
May 26, 2026
Hokuetsu Corporation reported that net sales and operating profit for the fiscal year ended March 2026 declined year-on-year, reflecting a global softening in pulp market conditions, weaker domestic demand for paper, and a slowdown in export marke...
Hokuetsu Reappoints Substitute Auditors to Bolster Governance Stability
May 15, 2026
Hokuetsu Corporation’s board has approved the nomination of two substitute corporate auditors, Shigeo Aruga and Shoji Suzuki, to be put to a shareholder vote at the company’s 188th Annual General Meeting on June 26, 2026. Both candidat...
Hokuetsu Revamps Board Lineup With New Directors and Advisor Roles
May 15, 2026
Hokuetsu Corporation has announced executive personnel changes approved by its Board of Directors, effective following the Ordinary General Meeting of Shareholders scheduled for June 26, 2026. Two senior executives, Senior Managing Director Shigeh...
Hokuetsu Unveils 2030 Medium-term Plan with ¥150 Billion Investment and Sustainability Focus
May 15, 2026
Hokuetsu Corporation has unveiled its Medium-term Management Plan 2030, covering April 2026 to March 2030, targeting consolidated net sales of 350 billion yen, operating profit of 24 billion yen, profit attributable to owners of parent of 17 billi...
Hokuetsu Profit Slumps but Dividend Rises as Sales Dip and Outlook Stays Cautious
May 15, 2026
Hokuetsu Corporation reported a challenging fiscal year ended March 31, 2026, with consolidated net sales down 5.9% to ¥287.7 billion and profit attributable to owners of parent falling 53.0% to ¥7.3 billion, as operating profit dropped ...
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.