Hokuetsu Corporation (JP:3865)
:3865
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Hokuetsu Corporation
(3865)
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Rating:57Neutral
Price Target:
¥923.00
▲(1.10% Upside)
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
¥136.24B
Dividend Yield2.71%
Average Volume (3M)187.20K
Price to Earnings (P/E)21.0
Beta (1Y)0.68
Revenue Growth-5.88%
EPS Growth-52.79%
CountryJP
Employees3,749
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)91.28
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)78.5
Revenue Forecast (FY)¥301.50B
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
54
Neutral
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 303.83B | 287.74B | 305.72B | 297.06B | 301.20B | 261.62B |
| Gross Profit | 69.28B | 56.46B | 68.80B | 60.15B | 64.02B | 61.13B |
| EBITDA | 33.31B | 21.13B | 33.04B | 28.29B | 29.28B | 33.55B |
| Net Income | 15.35B | 7.30B | 15.53B | 8.39B | 8.32B | 21.21B |
Balance Sheet | ||||||
| Total Assets | 413.18B | 420.57B | 418.88B | 415.69B | 388.44B | 376.96B |
| Cash, Cash Equivalents and Short-Term Investments | 24.30B | 30.12B | 27.64B | 22.14B | 18.06B | 30.27B |
| Total Debt | 94.23B | 97.35B | 90.63B | 106.31B | 105.13B | 100.41B |
| Total Liabilities | 151.61B | 167.82B | 153.01B | 163.22B | 162.49B | 159.98B |
| Stockholders Equity | 260.81B | 251.89B | 265.13B | 251.79B | 225.30B | 216.33B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -8.07B | 22.10B | 7.77B | -11.48B | 6.49B |
| Operating Cash Flow | 0.00 | 10.19B | 40.93B | 22.32B | 1.75B | 20.19B |
| Investing Cash Flow | 0.00 | -3.28B | -18.82B | -15.49B | -12.75B | -1.65B |
| Financing Cash Flow | 0.00 | -6.25B | -19.12B | -3.80B | -2.10B | -19.19B |
Hokuetsu Corporation Technical Analysis
Negative
913.00
Price Trends
919.97
Negative
924.38
Negative
930.48
Negative
Market Momentum
-15.26
Positive
42.67
Neutral
26.62
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 913 is above the 20-day moving average (MA) of 888.65, below the 50-day MA of 919.97, and below the 200-day MA of 930.48, indicating a bearish trend. The MACD of -15.26 indicates Positive momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 26.62 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥158.40B | 12.48 | 3.57% | 1.31% | 0.86% | 158.75% | |
65 Neutral | ¥135.58B | 26.17 | ― | 3.19% | 9.42% | -35.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥785.71B | 13.87 | 2.55% | 3.51% | 0.67% | 31.73% | |
57 Neutral | ¥136.24B | 20.97 | 3.97% | 2.71% | -5.88% | -52.79% | |
55 Neutral | ¥48.45B | 19.03 | -0.13% | 2.31% | -10.51% | -56.26% | |
49 Neutral | ¥159.06B | 19.04 | 1.66% | 1.53% | -1.57% | ― |
* Basic Materials Sector Average
JP:3865
Hokuetsu Corporation
897.00
-88.66
-8.99%
JP:3864
Mitsubishi Paper Mills
1,095.00
488.30
80.49%
JP:3863
Nippon Paper
1,364.00
323.39
31.08%
JP:3861
Oji Holdings
777.10
125.78
19.31%
JP:3880
Daio Paper Corporation
958.00
123.05
14.74%
JP:8032
Japan Pulp and Paper Co. Ltd.
1,151.00
582.39
102.42%
Hokuetsu Corporation Corporate Events
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 ...
Hokuetsu Names Daio Paper as New Largest Major Shareholder After Share Transfer
Mar 27, 2026
Hokuetsu Corporation has confirmed a shift in its ownership structure, with Daio Paper Corporation becoming its largest major shareholder following the completion of a negotiated share transfer on March 27, 2026. Daio Paper now holds 27,932,900 sh...
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...
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.