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

• Market Cap: ¥22.16B
• Dividend Yield: 4.5%
• Average Volume (3M): 34.67K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.75
• Revenue Growth: 3.05%
• EPS Growth: -63.52%
• Country: JP
• Employees: 1,299
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -4.86
• Shares Outstanding: 13,354,688
• 10 Day Avg. Volume: 25,520
• 30 Day Avg. Volume: 34,670
• PEG Ratio: -0.20
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 4.56
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,910.00 ▲(14.71% Upside)

Chuetsu Pulp & Paper's stock is supported by stable financial performance and positive technical indicators. The fair valuation with a strong dividend yield enhances its appeal. However, declining profit margins and ROE are areas of concern that need addressing for sustained growth.

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 through multiple key streams, primarily from the production and sale of its diverse paper products. The company capitalizes on the demand for both consumer and industrial-grade paper, leveraging its expertise in pulp processing and paper manufacturing. Significant revenue is derived from partnerships with businesses in the publishing and packaging sectors, which require reliable and high-quality paper products. Additionally, the company benefits from strategic collaborations with suppliers and distributors that enhance its market reach and operational efficiency. Factors contributing to its earnings include fluctuations in raw material prices, innovation in product offerings, and the overall demand for sustainable and eco-friendly paper solutions.

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

Summary

Chuetsu Pulp & Paper shows stable revenue growth and manageable debt levels. However, declining profit margins and ROE indicate a need for improved 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.33B	111.01B	107.83B	105.67B	90.10B	81.94B
Gross Profit	16.57B	16.92B	17.70B	14.61B	13.87B	13.81B
EBITDA	7.11B	8.29B	11.19B	9.19B	8.26B	5.91B
Net Income	1.18B	1.76B	3.70B	3.05B	1.27B	-1.05B
Balance Sheet
Total Assets	116.73B	121.89B	128.92B	122.75B	122.03B	123.49B
Cash, Cash Equivalents and Short-Term Investments	3.94B	9.01B	10.67B	8.11B	14.86B	15.57B
Total Debt	35.74B	37.19B	41.69B	44.01B	47.85B	53.45B
Total Liabilities	61.25B	65.94B	73.32B	71.12B	73.41B	76.04B
Stockholders Equity	56.43B	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: Neutral
• Last Price: 1665.00
• 50DMA: Negative
• 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 Neutral. The current price of 1665 is below the 20-day moving average (MA) of 1684.10, below the 50-day MA of 1694.03, and above the 200-day MA of 1549.54, indicating a neutral trend. The MACD of -5.06 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 23.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
8032	75 Outperform	¥107.21B	31.97	―	3.68%	4.06%	-73.92%
3877	75 Outperform	¥22.16B	18.56	―	4.50%	3.05%	-63.52%
3708	71 Outperform	¥55.32B	14.52	―	2.81%	8.71%	-24.08%
3864	64 Neutral	€26.81B	8.66	3.75%	2.47%	-9.91%	-5.64%
3863	62 Neutral	¥123.16B	6.97	3.57%	1.32%	1.64%	-10.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3880	54 Neutral	€137.64B	-14.11	-4.33%	1.67%	-2.23%	-8527.56%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Reports Q1 Financial Results Amid Profit Decline

Chuetsu Pulp & Paper Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026. The company saw a slight increase in net sales by 1.2% year-on-year, but experienced a significant decline in operating and ordinary profits. The profit attributable to owners of the parent also decreased, reflecting challenges in maintaining profitability. Despite these setbacks, the company maintains its dividend forecast for the fiscal year, indicating a stable outlook for shareholders.