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

• Market Cap: ¥22.16B
• Dividend Yield: 3.77%
• Average Volume (3M): 34.67K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.75
• Revenue Growth: -2.18%
• EPS Growth: -77.82%
• Country: JP
• Employees: 1,299
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 83.09
• 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: 62 Neutral
• Price Target: ¥2,170.00 ▲(8.99% Upside)

Chuetsu Pulp & Paper's stock score is primarily influenced by its stable financial performance and strong technical momentum. However, the high P/E ratio suggests potential overvaluation, and overbought technical indicators may indicate a short-term pullback. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Stable Financial Health

The company's stable financial health, with consistent revenue growth and manageable debt, indicates a solid foundation for long-term operations and resilience against market fluctuations.

Improved Leverage Management

Improved leverage management through a declining debt-to-equity ratio enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Efficient Cash Generation

Efficient cash generation from operations supports the company's ability to fund ongoing activities, reinvest in the business, and provide returns to shareholders, ensuring long-term sustainability.

Negative Factors

Declining Profit Margins

Declining profit margins suggest increased expenses or inefficiencies, which could impact profitability and require strategic adjustments to maintain competitiveness and shareholder value.

Reduced Free Cash Flow

A negative free cash flow growth rate limits the company's ability to reinvest in growth initiatives and return capital to shareholders, potentially hindering future expansion and value creation.

Declining ROE

A declining ROE indicates reduced efficiency in generating profits from shareholders' equity, which may concern investors and necessitate improvements in operational performance and strategic focus.

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

Company Description

Chuetsu Pulp & Paper Co., Ltd. (3877) is a Japanese company primarily engaged in the manufacturing and sale of paper products and pulp. The company operates across various sectors, including paper manufacturing, paperboard production, and real estate. Its core products encompass a wide range of paper items such as printing paper, packaging materials, and specialty paper, catering to various industries including publishing, packaging, and consumer goods.

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: Positive
• Last Price: 1991.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 1991 is above the 20-day moving average (MA) of 1901.30, above the 50-day MA of 1767.96, and above the 200-day MA of 1603.32, indicating a bullish trend. The MACD of 75.75 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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
8032	75 Outperform	¥110.78B	33.03	―	3.28%	4.06%	-73.92%
3708	71 Outperform	¥55.32B	14.52	―	2.74%	6.26%	-11.38%
3864	64 Neutral	€26.81B	8.66	3.95%	2.33%	-10.04%	43.13%
3877	62 Neutral	¥22.16B	18.56	―	3.77%	-2.18%	-77.82%
3863	62 Neutral	¥128.24B	7.26	3.57%	1.35%	1.64%	-10.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3880	59 Neutral	€137.64B	-14.11	-1.54%	1.55%	-2.89%	-15.89%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Reports Q2 Financial Decline, Adjusts Full-Year Forecast

Chuetsu Pulp & Paper Co., Ltd. reported a decline in its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, with net sales, operating profit, and ordinary profit all experiencing significant decreases compared to the previous year. The company has revised its financial forecasts for the full year, anticipating a slight decrease in net sales and a substantial drop in operating profit, but expects a notable increase in profit attributable to owners of the parent, indicating potential strategic adjustments to improve profitability.