Hokuetsu Corporation (3865) AI Stock Analysis

• Market Cap: €172.93B
• Dividend Yield: 2.16%
• Average Volume (3M): 252.37K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.06
• Revenue Growth: 2.92%
• EPS Growth: 84.86%
• Country: JP
• Employees: 3,749
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 24.08
• Shares Outstanding: 188,053,120
• 10 Day Avg. Volume: 215,670
• 30 Day Avg. Volume: 252,370
• PEG Ratio: -0.29
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.98
• 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: €1,002.04
• Price Target Upside: -2.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,142.00 ▲(10.98%Upside)

Hokuetsu Corporation's strong financial performance, driven by revenue growth and solid cash flow, is the primary contributor to its stock score. Its reasonable valuation with a stable dividend yield further supports the score. However, the lack of positive market momentum slightly tempers the overall outlook.

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 printing and communication papers for books, magazines, catalogs, and brochures; and uncoated printing papers and colored wood-free papers. It also provides white paperboard, coated duplex board, cast coated paper, etc. for various packages, catalogs, POP advertising, and postcards, as well as the covers of publications and others. In addition, the company offers premium printing papers, fancy papers, communication papers, papers for industrial use, specialty processed products, specialty fiber boards, and others; decorative and functional papers; and wood products and glass fiber sheets. Further, it offers paper, food, and liquid package cartons containers, as well as confectionery boxes; processed paper for cosmetics and OTC pharmaceutical packaging; milk and drink cartons under the Tohei Pak brand name; and adhesive postcard papers, abrasive-coated base papers, chip carrier tape base paper, mark sheet paper, business forms, and communication media products. Additionally, the company engages in waste paper wholesale, construction, transportation, warehousing, investment, data processing service, and other businesses. The company was formerly known as Hokuetsu Kishu Paper Co., Ltd. and changed its name to Hokuetsu Corporation in July 2018. Hokuetsu Corporation was founded in 1907 and is headquartered in Tokyo, Japan.

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

Hokuetsu Corporation demonstrates robust financial health, characterized by strong revenue growth and profitability, a balanced capital structure, and solid cash flow generation. However, the high total debt requires monitoring to mitigate potential risks.

Income Statement

Hokuetsu Corporation has shown strong revenue growth, with a noticeable increase from the previous year. The gross profit margin is healthy, and the net profit margin has significantly improved, indicating efficient cost management and increased profitability. The EBIT and EBITDA margins are also robust, reflecting solid operational performance.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, suggesting balanced leverage. The return on equity (ROE) has improved, indicating effective use of equity to generate profits. The equity ratio is strong, highlighting a substantial portion of assets financed by equity. However, the total debt remains high, which could pose a risk if not managed properly.

Cash Flow

Operating cash flow has increased, supporting the company's ability to reinvest and manage liabilities. The free cash flow growth rate is impressive, reflecting strong cash generation capabilities. The ratios of operating and free cash flow to net income suggest a healthy cash flow relative to earnings, providing financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	301.25B	305.72B	297.06B	301.20B	261.62B	222.45B
Gross Profit	67.44B	68.80B	60.15B	64.02B	61.13B	38.48B
EBITDA	22.98B	35.61B	28.29B	29.28B	33.56B	16.31B
Net Income	12.59B	15.53B	8.40B	8.32B	21.21B	14.17B
Balance Sheet
Total Assets	419.86B	418.88B	415.63B	388.44B	376.96B	363.07B
Cash, Cash Equivalents and Short-Term Investments	21.97B	27.64B	22.14B	18.06B	30.27B	29.85B
Total Debt	99.57B	88.97B	106.16B	105.13B	100.41B	115.44B
Total Liabilities	162.80B	153.01B	163.23B	162.50B	159.99B	167.66B
Stockholders Equity	256.38B	265.13B	251.72B	225.30B	216.33B	194.80B
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

• Technical Analysis Sentiment: Positive
• Last Price: 1029.00
• 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 Positive. The current price of 1029 is above the 20-day moving average (MA) of 1020.70, below the 50-day MA of 1039.28, and below the 200-day MA of 1337.32, indicating a neutral trend. The MACD of -2.40 indicates Negative momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 44.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3865.

Hokuetsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3865	72 Outperform	€172.93B	11.14	5.99%	2.16%	2.92%	84.86%
Sector *	62 Neutral	$10.15B	9.75	-0.17%	2.87%	2.22%	-32.49%
NIJPF		$821.86M	27.77	0.90%	<0.01%	―	―
OJIPF		$5.04B	16.39	4.18%	0.02%	―	―
DPR		€799.15M	―	-4.63%	1.70%	―	―
8032	77 Outperform	¥93.06B	10.17		4.01%	3.80%	-22.03%
3708	72 Outperform	¥44.07B	12.49		3.12%	9.57%	-20.99%

Hokuetsu Corporation Corporate Events

Hokuetsu Corporation Issues Stock Options to Align Management with Shareholders

Hokuetsu Corporation has announced the issuance of stock options as a strategic move to align its directors’ interests with those of shareholders, thereby boosting morale and enhancing corporate value over the medium to long term. This initiative is expected to improve the company’s performance and strengthen its market position by incentivizing management to focus on shareholder-focused strategies.

The most recent analyst rating on (JP:3865) stock is a Hold with a Yen1010.00 price target. To see the full list of analyst forecasts on Hokuetsu Corporation stock, see the JP:3865 Stock Forecast page.

Hokuetsu Corporation Adopts New Acquisition Response Policy

Hokuetsu Corporation announced that its shareholders have approved a new Acquisition Response Policy, replacing the previous Contingency Response Policy. This move is aimed at safeguarding the company’s corporate value and aligning with shareholder interests, reflecting a strategic shift in handling large-scale acquisitions of its share certificates.

The most recent analyst rating on (JP:3865) stock is a Hold with a Yen1010.00 price target. To see the full list of analyst forecasts on Hokuetsu Corporation stock, see the JP:3865 Stock Forecast page.

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.