Hokuetsu Corporation (JP:3865)
:3865
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Hokuetsu Corporation
(3865)
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Rating:66Neutral
Price Target:
¥986.00
▲(8.00% Upside)
Action:ReiteratedDate:10/30/25
Hokuetsu Corporation's overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust revenue growth and profitability, along with a low P/E ratio and solid dividend yield, are significant strengths. However, the current technical analysis suggests caution due to negative momentum and oversold conditions.
Positive Factors
Strong cash generation
Rising operating cash flow and impressive free cash flow growth provide durable financial flexibility. That strengthens the firm's ability to fund capex, sustain dividends, pay down liabilities, and invest in efficiency initiatives without relying on external financing, improving resilience over months.
Negative Factors
Declining revenue and EPS growth
Negative topline and EPS growth metrics point to recent demand weakness or margin pressures that can persist without corrective action. Continued revenue and earnings contraction limits reinvestment capacity and increases reliance on cost fixes, creating medium-term performance risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Rising operating cash flow and impressive free cash flow growth provide durable financial flexibility. That strengthens the firm's ability to fund capex, sustain dividends, pay down liabilities, and invest in efficiency initiatives without relying on external financing, improving resilience over months.
Read all positive factors
Hokuetsu Corporation (3865) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥141.30B
Dividend Yield2.71%
Average Volume (3M)187.20K
Price to Earnings (P/E)9.2
Beta (1Y)0.74
Revenue Growth-0.03%
EPS Growth120.35%
CountryJP
Employees3,749
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)24.22
Shares Outstanding163,053,120
10 Day Avg. Volume151,710
30 Day Avg. Volume187,203
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.78
Price to Sales (P/S)0.67
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)39.8
Revenue Forecast (FY)¥291.60B
Hokuetsu Corporation Business Overview & Revenue Model
Company Description
Hokuetsu Corporation manufactures and sells paper products in Japan, the United State, China, rest of Asia, and internationally. It operates in two segments, Paper and Pulp Business, and Packaging and Paper Processing Business. The company offers ...
How the Company Makes Money
null...
Hokuetsu Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 303.83B | 305.72B | 297.06B | 301.20B | 261.62B | 222.45B |
| Gross Profit | 69.28B | 68.80B | 60.15B | 64.02B | 61.13B | 38.48B |
| EBITDA | 33.31B | 33.04B | 28.29B | 29.28B | 33.55B | 15.77B |
| Net Income | 15.35B | 15.53B | 8.39B | 8.32B | 21.21B | 14.17B |
Balance Sheet | ||||||
| Total Assets | 413.18B | 418.88B | 415.69B | 388.44B | 376.96B | 363.07B |
| Cash, Cash Equivalents and Short-Term Investments | 24.30B | 27.64B | 22.14B | 18.06B | 30.27B | 29.85B |
| Total Debt | 94.23B | 90.63B | 106.31B | 105.13B | 100.41B | 115.44B |
| Total Liabilities | 151.61B | 153.01B | 163.22B | 162.49B | 159.98B | 167.65B |
| Stockholders Equity | 260.81B | 265.13B | 251.79B | 225.30B | 216.33B | 194.81B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 22.10B | 7.77B | -11.48B | 6.49B | 7.40B |
| Operating Cash Flow | 0.00 | 40.93B | 22.32B | 1.75B | 20.19B | 23.76B |
| Investing Cash Flow | 0.00 | -18.82B | -15.49B | -12.75B | -1.65B | -19.57B |
| Financing Cash Flow | 0.00 | -19.12B | -3.80B | -2.10B | -19.19B | 4.36B |
Hokuetsu Corporation Technical Analysis
Negative
913.00
Price Trends
960.02
Negative
919.37
Negative
957.51
Negative
Market Momentum
-14.37
Positive
34.93
Neutral
9.95
Positive
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 913 is below the 20-day moving average (MA) of 986.70, below the 50-day MA of 960.02, and below the 200-day MA of 957.51, indicating a bearish trend. The MACD of -14.37 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 9.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3865.
Hokuetsu Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥141.30B | 9.24 | 3.97% | 2.71% | -0.03% | 120.35% | |
62 Neutral | ¥143.96B | 4.80 | 3.57% | 1.31% | 1.64% | -10.74% | |
62 Neutral | ¥852.97B | 9.64 | 2.55% | 3.51% | 3.91% | -22.16% | |
62 Neutral | ¥120.18B | 6.41 | ― | 3.19% | 4.06% | -73.92% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ¥36.05B | -9.37 | -0.13% | 2.31% | -10.04% | 43.13% | |
59 Neutral | ¥171.35B | 8.74 | 1.66% | 1.53% | -2.89% | -15.89% |
* Basic Materials Sector Average
JP:3865
Hokuetsu Corporation
893.00
-336.27
-27.36%
JP:3864
Mitsubishi Paper Mills
811.00
129.00
18.91%
JP:3863
Nippon Paper
1,246.00
207.11
19.94%
JP:3861
Oji Holdings
861.10
230.38
36.53%
JP:3880
Daio Paper Corporation
1,032.00
181.48
21.34%
JP:8032
Japan Pulp and Paper Co. Ltd.
1,046.00
452.11
76.13%
Hokuetsu Corporation Corporate Events
Hokuetsu Cuts Daio Stake, Ending Equity-Method Affiliation but Deepening Alliance
Mar 19, 2026
Hokuetsu Corporation has sold 11 million shares of Daio Paper Corporation through Daio’s off-auction share repurchase program, completing the transaction on March 19, 2026. Upon settlement on March 24, Daio Paper will no longer be treated as...
Hokuetsu Buys Back and Cancels 10 Million Shares to Support Daio Alliance
Mar 19, 2026
Hokuetsu Corporation has completed the acquisition of 10 million of its own common shares for approximately ¥10.28 billion via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system, and will cancel all of these treasury shares on Marc...
Hokuetsu to Cut Daio Paper Stake via ToSTNeT-3 Buyback, Ending Affiliate Status
Mar 18, 2026
Hokuetsu Corporation’s board has approved tendering 11,000,000 shares of Daio Paper Corporation, an equity-method affiliate, into Daio’s planned off-auction share buyback through the ToSTNeT-3 system. The move is part of a broader plan...
Hokuetsu to Shift Largest Shareholder to Daio Paper via ¥26.3 Billion Secondary Offering
Mar 18, 2026
Hokuetsu Corporation has announced a secondary offering of up to 29,213,800 existing shares via an off-market negotiated transfer from current major shareholders Misuga Kaiun and DAIO KAIUN to Daio Paper at an offering price of 1,028 yen per share...
Hokuetsu Launches Major Share Buyback and Cancellation Tied to Daio Paper Alliance
Mar 18, 2026
Hokuetsu Corporation’s board has approved the acquisition of up to 10 million of its own shares, or about 5.92% of outstanding stock, via the Tokyo Stock Exchange’s ToSTNeT-3 system at the March 18 closing price, mainly by purchasing s...
Daio Paper and Hokuetsu Deepen Alliance With More Balanced Cross-Shareholdings
Mar 18, 2026
Daio Paper Corporation and Hokuetsu Corporation have agreed to deepen their strategic business alliance by signing a new memorandum of understanding that aims to create a more equal capital relationship and expand cooperative initiatives. The move...
Hokuetsu Posts Sharp Profit Decline but Raises Dividend Outlook
Feb 13, 2026
Hokuetsu Corporation reported a sharp earnings decline for the nine months to December 31, 2025, with net sales down 7.3% year on year to 212.7 billion yen and operating profit plunging 64.4%, while profit attributable to owners of the parent fell...
Hokuetsu Finalizes Employee Stock Trust and Treasury Share Disposal Plan
Feb 13, 2026
Hokuetsu Corporation has finalized the structure of an employee stock benefit trust that will supply company shares to its Employee Stock Ownership Association over a planned five-year period starting March 25, 2026. The trust, administered by Miz...
Hokuetsu Reshapes Sales Structure and Management to Bolster Global Paper Business
Jan 27, 2026
Hokuetsu Corporation has announced a reorganization of its sales structure and senior management to better respond to major changes in the paper and pulp business environment. The company will create a new International Paper Export Sales Division...
Hokuetsu Reshapes Top Management to Drive Business Portfolio Transformation
Jan 27, 2026
Hokuetsu Corporation has announced a leadership reshuffle aimed at sustaining long-term management and accelerating the transformation of its business portfolio to bolster competitiveness. Current President and CEO Sekio Kishimoto will become Chai...
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.