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Chuetsu Pulp & Paper Co., Ltd. (JP:3877)
:3877
Japanese Market

Chuetsu Pulp & Paper Co., Ltd. (3877) AI Stock Analysis

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JP

Chuetsu Pulp & Paper Co., Ltd.

(3877)

Rating:75Outperform
Price Target:
¥1,762.00
▲(5.57%Upside)
The stock score of 75 reflects strong technical indicators and a solid valuation profile, although financial performance is somewhat hampered by declining margins and ROE. The company's stable revenue growth and improved debt management are positives, while operational efficiency needs improvement.

Chuetsu Pulp & Paper Co., Ltd. (3877) vs. iShares MSCI Japan ETF (EWJ)

Chuetsu Pulp & Paper Co., Ltd. Business Overview & Revenue Model

Company DescriptionChuetsu Pulp & Paper Co., Ltd. is a Japan-based company primarily engaged in the manufacture and sale of pulp, paper, and paperboard products. The company operates in various sectors, including industrial paper, packaging, and printing paper. Its core products include newsprint, printing and writing paper, corrugated containerboard, and pulp products, serving a wide range of industries both domestically and internationally.
How the Company Makes MoneyChuetsu Pulp & Paper Co., Ltd. generates revenue primarily through the production and sale of pulp, paper, and related products. The company's key revenue streams include the sale of newsprint, which is used by newspaper publishers, and printing and writing paper, which is utilized by businesses and educational institutions. Additionally, Chuetsu Pulp & Paper supplies corrugated containerboard for packaging solutions, catering to the logistics and consumer goods sectors. The company also engages in the production of pulp, which is sold to other paper manufacturers. Significant partnerships with domestic and international distributors and a strong focus on sustainable and innovative production methods contribute to the company's earnings.

Chuetsu Pulp & Paper Co., Ltd. Financial Statement Overview

Summary
Chuetsu Pulp & Paper shows stable revenue growth and improved leverage management, but declining profit margins and ROE indicate areas for improvement in operational efficiency and profitability.
Income Statement
75
Positive
Chuetsu Pulp & Paper has shown a steady increase in revenue over the years with a slight dip in gross profit margin from 15.1% in 2024 to 15.2% in 2025. The net profit margin has decreased from 3.4% to 1.6% indicating increased expenses or other factors affecting profitability. Revenue growth is positive at 2.9% from 2024 to 2025, suggesting a stable demand for its products. Despite these strengths, the declining EBIT and EBITDA margins over the years highlight a need for operational efficiency improvements.
Balance Sheet
70
Positive
The balance sheet reveals a stable asset base with a slight decline in total assets from 2024 to 2025. The debt-to-equity ratio is moderate, showing a decline from 0.75 in 2024 to 0.65 in 2025, indicating improved leverage management. Return on equity decreased from 6.7% to 3.1%, which may concern investors regarding profitability. The equity ratio is stable, reflecting a balanced approach to financing through equity and debt.
Cash Flow
65
Positive
Cash flow analysis indicates a decline in free cash flow from 2024 to 2025; however, the company maintains a positive free cash flow position. The operating cash flow to net income ratio is strong, suggesting efficient cash generation from operations. However, the free cash flow growth rate is negative, pointing to reduced cash available for reinvestment and shareholder returns.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue111.08B111.01B107.83B105.67B90.10B81.94B
Gross Profit17.16B16.92B17.70B14.61B13.87B13.81B
EBITDA10.52B8.29B11.19B8.42B8.62B5.91B
Net Income3.09B1.76B3.70B3.05B1.27B-1.05B
Balance Sheet
Total Assets125.57B121.89B128.92B122.75B122.03B123.49B
Cash, Cash Equivalents and Short-Term Investments5.82B9.01B10.67B8.11B14.86B15.57B
Total Debt37.19B37.19B41.69B44.01B47.85B53.45B
Total Liabilities67.61B65.94B73.32B71.12B73.41B76.04B
Stockholders Equity57.98B56.89B55.60B51.61B48.58B47.41B
Cash Flow
Free Cash Flow0.004.00B5.53B-3.32B4.44B1.19B
Operating Cash Flow0.0010.36B13.56B2.66B8.26B5.96B
Investing Cash Flow0.00-6.01B-7.91B-5.12B-3.15B-3.90B
Financing Cash Flow0.00-6.01B-3.10B-4.79B-5.89B6.28B

Chuetsu Pulp & Paper Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1669.00
Price Trends
50DMA
1583.62
Positive
100DMA
1501.52
Positive
200DMA
1429.60
Positive
Market Momentum
MACD
16.02
Negative
RSI
68.20
Neutral
STOCH
84.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3877, the sentiment is Positive. The current price of 1669 is above the 20-day moving average (MA) of 1597.00, above the 50-day MA of 1583.62, and above the 200-day MA of 1429.60, indicating a bullish trend. The MACD of 16.02 indicates Negative momentum. The RSI at 68.20 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3877.

Chuetsu Pulp & Paper Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥93.06B10.17
4.00%3.80%-22.03%
75
Outperform
¥21.72B11.91
4.30%2.95%-53.11%
72
Outperform
¥44.07B12.49
3.09%9.57%-20.99%
70
Outperform
¥175.24B11.096.29%3.49%3.95%5.88%
65
Neutral
€28.58B6.494.96%2.33%-9.06%4.04%
62
Neutral
¥120.62B26.550.90%0.96%1.30%-80.06%
53
Neutral
€138.81B-4.63%1.67%-0.41%-348.22%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,669.00
260.25
18.47%
JP:3708
Tokushu Tokai Paper Co., Ltd.
3,855.00
252.30
7.00%
JP:8032
Japan Pulp and Paper Co. Ltd.
633.00
31.30
5.20%
JP:3864
Mitsubishi Paper Mills
652.00
-76.97
-10.56%
JP:3880
Daio Paper Corporation
844.00
-42.61
-4.81%
JP:3863
Nippon Paper
1,053.00
103.11
10.85%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Reports Mixed Financial Results with Optimistic Outlook
May 29, 2025

Chuetsu Pulp & Paper Co., Ltd. reported a modest increase in net sales for the fiscal year ending March 2025, but experienced significant declines in operating and ordinary profits, as well as a sharp drop in profit attributable to owners of the parent. Despite these challenges, the company improved its shareholders’ equity ratio and increased its annual dividend per share, reflecting a commitment to returning value to shareholders. The financial forecast for the upcoming year suggests slight growth in net sales and profits, indicating a cautious optimism about future performance.

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.Date of analysis: May 27, 2025