Hokuetsu Corporation (3865) AI Stock Analysis

• Market Cap: €171.75B
• Dividend Yield: 2.2%
• Average Volume (3M): 221.69K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.03
• Revenue Growth: 2.92%
• EPS Growth: 84.86%
• Country: JP
• Employees: 3,749
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 24.08
• Shares Outstanding: 188,053,120
• 10 Day Avg. Volume: 154,770
• 30 Day Avg. Volume: 221,690
• PEG Ratio: 0.47
• Price to Book (P/B): 0.64
• 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: €999.15
• Price Target Upside: -4.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,124.00 ▲(7.77%Upside)

Hokuetsu Corporation's strong financial performance is the primary driver of the score, supported by healthy revenue growth and solid cash flow. The valuation is reasonable with a moderate P/E ratio and a decent dividend yield. The technical analysis presents mixed signals, with short-term momentum being neutral to slightly negative. The absence of earnings call and corporate events data does not impact the score.

Hokuetsu Corporation Business Overview & Revenue Model

Company Description

Hokuetsu Corporation, headquartered in Japan, operates primarily in the paper manufacturing industry. The company engages in the production and sale of various paper products, including printing and communication papers, specialty papers, and packaging materials. Hokuetsu is recognized for its commitment to sustainable practices and innovation in paper production, serving a diverse customer base both domestically and internationally.

How the Company Makes Money

Hokuetsu Corporation generates revenue through the sale of its paper products across different segments. The primary revenue streams include printing and communication papers, which are used in publishing, advertising, and office environments; specialty papers that cater to niche markets with specific requirements; and packaging materials that serve industries such as food and consumer goods. The company benefits from its strategic partnerships and investments in advanced technologies, which enhance production efficiency and product quality. Additionally, Hokuetsu's focus on sustainability and eco-friendly practices attracts environmentally conscious customers, contributing to its market competitiveness and financial performance.

Hokuetsu Corporation Financial Statement Overview

Summary

Hokuetsu Corporation demonstrates robust financial health with strong revenue growth and profitability. The company maintains a balanced capital structure and solid cash flow generation, though it should monitor its debt levels.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	305.72B	297.06B	301.20B	261.62B	222.45B
Gross Profit	68.80B	60.15B	64.02B	61.13B	38.48B
EBITDA	35.61B	28.29B	29.28B	33.56B	16.31B
Net Income	15.53B	8.40B	8.32B	21.21B	14.17B
Balance Sheet
Total Assets	418.88B	415.63B	388.44B	376.96B	363.07B
Cash, Cash Equivalents and Short-Term Investments	27.64B	22.14B	18.06B	30.27B	29.85B
Total Debt	88.97B	106.16B	105.13B	100.41B	115.44B
Total Liabilities	153.01B	163.23B	162.50B	159.99B	167.66B
Stockholders Equity	265.13B	251.72B	225.30B	216.33B	194.80B
Cash Flow
Free Cash Flow	22.10B	7.77B	-11.48B	6.49B	7.40B
Operating Cash Flow	40.93B	22.32B	1.75B	20.19B	23.76B
Investing Cash Flow	-18.82B	-15.49B	-12.75B	-1.65B	-19.57B
Financing Cash Flow	-19.12B	-3.80B	-2.10B	-19.19B	4.36B

Hokuetsu Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1043.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1043 is above the 20-day moving average (MA) of 1010.25, above the 50-day MA of 1012.50, and below the 200-day MA of 1299.88, indicating a bearish trend. The MACD of -8.10 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 61.59 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
8032	77 Outperform	¥97.97B	10.71		3.82%	3.80%	-22.03%
3861	74 Outperform	$732.22B	15.62	4.18%	3.25%	9.02%	-8.77%
3708	72 Outperform	¥45.11B	12.78		3.05%	9.57%	-20.99%
3863	71 Outperform	¥128.94B	28.38	0.90%	0.90%	1.30%	-80.06%
Sector *	71 Outperform	¥178.90B	10.14	6.29%	3.17%	3.86%	-0.18%
3865	70 Outperform	€171.75B	11.07	5.99%	2.20%	2.92%	84.86%
3880	57 Neutral	€139.97B	―	-4.63%	1.66%	-0.41%	-348.22%

Hokuetsu Corporation Corporate Events

Hokuetsu Corporation Sets Pay-in Amount for Director Stock Options

Hokuetsu Corporation has announced the pay-in amount for stock acquisition rights allotted to its Directors, excluding Outside Directors, as stock options. This decision, made by the Board of Directors, involves a pay-in amount of 430,000 yen per stock acquisition right, with an exercise period extending from July 15, 2025, to July 14, 2040, potentially impacting the company’s financial structure and stakeholder interests.

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 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.