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

• Market Cap: ¥22.76B
• Dividend Yield: 4.1%
• Average Volume (3M): 33.29K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.81
• Revenue Growth: 2.95%
• EPS Growth: -53.11%
• Country: JP
• Employees: 1,299
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -61.46
• Shares Outstanding: 13,354,688
• 10 Day Avg. Volume: 33,790
• 30 Day Avg. Volume: 33,293
• PEG Ratio: -0.27
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,762.00
• Price Target Upside: 3.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,762.00 ▲(3.77%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. is a Japanese company engaged primarily in the production and sale of paper, paperboard, and related products. The company operates within the pulp and paper industry, offering a wide range of products including printing paper, packaging paper, and specialty paper. Chuetsu Pulp & Paper is known for its commitment to sustainability, utilizing advanced technologies to enhance production efficiency and reduce environmental impact. The company serves various sectors including publishing, packaging, and industrial applications, providing high-quality paper solutions to meet diverse customer needs.

How the Company Makes Money

Chuetsu Pulp & Paper Co., Ltd. generates revenue through the manufacturing and sale of a variety of paper and paperboard products. The company's core revenue streams include sales of printing and writing paper, packaging paper, and specialty paper products, which are distributed to both domestic and international markets. Additionally, the company benefits from its integrated production facilities that allow for cost-effective production processes. Partnerships and collaborations with other companies in the industry enhance its market presence and distribution capabilities. Chuetsu Pulp & Paper's commitment to innovation and sustainability also plays a significant role in maintaining its competitive edge in the industry, attracting environmentally conscious clients and expanding its market share.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	111.01B	107.83B	105.67B	90.10B	81.94B
Gross Profit	16.92B	17.70B	14.61B	13.87B	13.81B
EBITDA	8.29B	11.19B	8.42B	8.62B	5.91B
Net Income	1.76B	3.70B	3.05B	1.27B	-1.05B
Balance Sheet
Total Assets	121.89B	128.92B	122.75B	122.03B	123.49B
Cash, Cash Equivalents and Short-Term Investments	9.01B	10.67B	8.11B	14.86B	15.57B
Total Debt	37.19B	41.69B	44.01B	47.85B	53.45B
Total Liabilities	65.94B	73.32B	71.12B	73.41B	76.04B
Stockholders Equity	56.89B	55.60B	51.61B	48.58B	47.41B
Cash Flow
Free Cash Flow	4.00B	5.53B	-3.32B	4.44B	1.19B
Operating Cash Flow	10.36B	13.56B	2.66B	8.26B	5.96B
Investing Cash Flow	-6.01B	-7.91B	-5.12B	-3.15B	-3.90B
Financing Cash Flow	-6.01B	-3.10B	-4.79B	-5.89B	6.28B

Chuetsu Pulp & Paper Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1698.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1698 is above the 20-day moving average (MA) of 1669.75, above the 50-day MA of 1630.96, and above the 200-day MA of 1462.27, indicating a bullish trend. The MACD of 26.91 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 73.41 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
8032	77 Outperform	¥97.97B	10.71		3.82%	3.80%	-22.03%
3877	75 Outperform	¥22.76B	12.48		4.10%	2.95%	-53.11%
3708	72 Outperform	¥45.11B	12.78		3.07%	9.57%	-20.99%
3863	71 Outperform	¥128.94B	28.38	0.90%	0.90%	1.30%	-80.06%
Sector *	71 Outperform	¥178.90B	10.14	6.29%	3.17%	3.86%	-0.18%
3864	66 Neutral	€29.25B	6.64	4.96%	2.28%	-9.06%	4.04%
3880	57 Neutral	€139.97B	―	-4.63%	1.66%	-0.41%	-348.22%

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.