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

• Market Cap: ¥21.63B
• Dividend Yield: 4.32%
• Average Volume (3M): 38.67K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.84
• Revenue Growth: 2.95%
• EPS Growth: -52.19%
• Country: JP
• Employees: 1,299
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -61.46
• Shares Outstanding: 13,354,688
• 10 Day Avg. Volume: 36,870
• 30 Day Avg. Volume: 38,673
• PEG Ratio: 0.03
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.12
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,762.00 ▲(8.77%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. Business Overview & Revenue Model

Company Description

Chuetsu Pulp & Paper Co., Ltd. engages in the production, processing, and sales of paper, pulp, and related by-products. It provides printing, information, wrapping, processing, and bamboo papers, as well as newspapers and paperboards. The company is also involved in the forestry, lumbering, and timber processing activities; manufacture, processing, and sales of chemicals; selling, management, brokerage, and leasing of real estate properties; management of sports facilities; and mining, warehousing, and transportation activities, as well as electricity supply activities. In addition, it engages in the trading and greening business construction. Chuetsu Pulp & Paper Co., Ltd. was incorporated in 1947 and is headquartered in Takaoka, Japan.

How the Company Makes Money

Chuetsu 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

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

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

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.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
111.08B	111.01B	107.83B	105.67B	90.10B	81.94B
	Gross Profit
17.16B	16.92B	17.70B	14.61B	13.87B	13.81B
	EBIT
5.07B	4.84B	6.17B	2.59B	2.35B	-347.00M
	EBITDA
10.52B	8.29B	11.19B	8.42B	8.62B	5.91B
	Net Income Common Stockholders
3.09B	1.76B	3.70B	3.05B	1.27B	-1.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.82B	9.01B	10.67B	8.11B	14.86B	15.57B
	Total Assets
125.57B	121.89B	128.92B	122.75B	122.03B	123.49B
	Total Debt
37.19B	37.19B	41.69B	44.01B	47.85B	53.45B
	Net Debt
31.38B	28.19B	31.02B	35.90B	32.99B	37.87B
	Total Liabilities
67.61B	65.94B	73.32B	71.12B	73.41B	76.04B
	Stockholders Equity
57.98B	56.89B	55.60B	51.61B	48.58B	47.41B
Cash Flow		Free Cash Flow
0.00	4.00B	5.53B	-3.32B	4.44B	1.19B
	Operating Cash Flow
0.00	10.36B	13.56B	2.66B	8.26B	5.96B
	Investing Cash Flow
0.00	-6.01B	-7.91B	-5.12B	-3.15B	-3.90B
	Financing Cash Flow
0.00	-6.01B	-3.10B	-4.79B	-5.89B	6.28B

Chuetsu Pulp & Paper Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1620.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1620 is above the 20-day moving average (MA) of 1599.90, above the 50-day MA of 1507.34, and above the 200-day MA of 1396.28, indicating a bullish trend. The MACD of 40.34 indicates Positive momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 40.57 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3877	75 Outperform	¥21.63B	11.86		4.32%	2.95%	-52.19%
8032	73 Outperform	¥89.04B	9.73		4.18%	3.80%	-22.03%
3708	72 Outperform	¥42.24B	11.97		3.26%	9.57%	-20.71%
3864	66 Neutral	¥27.52B	6.25	4.96%	2.56%	-9.06%	4.05%
3863	63 Neutral	$120.85B	26.60	0.90%	0.96%	1.30%	-80.06%
3880	54 Neutral	¥134.16B	―	-4.63%	1.84%	-0.41%	-348.23%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Reports Mixed Financial Results with Optimistic Outlook

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.