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

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JP:3877

Chuetsu Pulp & Paper Co., Ltd.

(3877)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥2,167.00
▲(6.96% Upside)
Action:Reiterated
Date:05/16/26
Overall score is driven by attractive valuation (low P/E and strong dividend yield) and solid technical strength (price above key moving averages with positive MACD). These positives are offset by weaker financial performance—especially the sharp deterioration and volatility in cash generation alongside recent margin compression.
Positive Factors
Improved Balance Sheet
Material deleveraging and a larger equity base provide durable financial flexibility. Lower leverage reduces refinancing and liquidity risk through cycles, enabling the company to sustain operations, fund necessary mill maintenance and capital expenditure, and support distributions during weaker years.
Negative Factors
Volatile Cash Generation
Inconsistent conversion of earnings into cash and FCF near zero reduce capacity to self-fund capex, smooth dividends, or absorb shocks. Persistent volatility in cash generation constrains strategic flexibility and raises refinancing or external funding risk in tougher cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Balance Sheet
Material deleveraging and a larger equity base provide durable financial flexibility. Lower leverage reduces refinancing and liquidity risk through cycles, enabling the company to sustain operations, fund necessary mill maintenance and capital expenditure, and support distributions during weaker years.
Read all positive factors

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

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...
How the Company Makes Money
The company primarily makes money by manufacturing and selling pulp and paper products. Its core revenue stream is sales of paper produced at its mills to downstream customers (e.g., converters, packaging-related users, and other industrial/commer...

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

Summary
Balance sheet is a relative strength (lower leverage and a solid equity base), but operating performance has softened with margin compression and flat-to-down revenue. Cash flow is the main concern: operating cash flow fell sharply and free cash flow was near breakeven in the latest year, reducing near-term flexibility.
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue111.33B110.39B111.01B107.83B105.67B90.10B
Gross Profit16.75B14.74B17.15B17.70B14.64B13.92B
EBITDA10.54B8.89B11.01B12.10B8.42B8.62B
Net Income1.18B2.44B1.76B3.70B3.05B1.27B
Balance Sheet
Total Assets116.73B119.09B122.67B129.57B123.11B122.03B
Cash, Cash Equivalents and Short-Term Investments3.94B4.88B9.01B10.67B8.11B14.86B
Total Debt35.74B33.35B37.19B41.69B44.01B47.85B
Total Liabilities61.25B59.13B66.72B73.96B71.48B73.41B
Stockholders Equity56.43B59.95B56.89B55.60B51.62B48.59B
Cash Flow
Free Cash Flow0.0026.00M4.00B5.53B-3.32B4.44B
Operating Cash Flow0.004.67B10.36B13.56B2.66B8.26B
Investing Cash Flow0.00-4.00B-6.01B-7.91B-5.12B-3.15B
Financing Cash Flow0.00-4.79B-6.01B-3.10B-4.79B-5.89B

Chuetsu Pulp & Paper Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2026.00
Price Trends
50DMA
1917.13
Positive
100DMA
1939.88
Positive
200DMA
1818.83
Positive
Market Momentum
MACD
15.54
Positive
RSI
51.74
Neutral
STOCH
14.71
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 2026 is above the 20-day moving average (MA) of 1968.25, above the 50-day MA of 1917.13, and above the 200-day MA of 1818.83, indicating a neutral trend. The MACD of 15.54 indicates Positive momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 14.71 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥62.63B12.822.67%0.65%22.48%
67
Neutral
¥158.40B12.483.57%1.31%0.86%158.75%
65
Neutral
¥135.58B26.173.19%9.42%-35.70%
64
Neutral
¥25.90B9.463.72%-0.56%44.99%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
¥785.71B13.872.55%3.51%0.67%31.73%
49
Neutral
¥159.06B19.041.66%1.53%-1.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,968.00
477.25
32.01%
JP:3863
Nippon Paper
1,364.00
323.39
31.08%
JP:3861
Oji Holdings
777.10
125.78
19.31%
JP:3880
Daio Paper Corporation
958.00
123.05
14.74%
JP:3708
Tokushu Tokai Paper Co., Ltd.
1,725.00
563.49
48.51%
JP:8032
Japan Pulp and Paper Co. Ltd.
1,151.00
582.39
102.42%

Chuetsu Pulp & Paper Co., Ltd. Corporate Events

Chuetsu Pulp & Paper Overhauls Board and Executive Lineup Ahead of June Shareholders’ Meeting
May 14, 2026
Chuetsu Pulp Paper has announced a slate of management changes, including the planned retirement of Chairman Hisashi Uematsu as director and the adjustment of President Ryoji Fukumoto’s responsibilities to include oversight of the Tokyo Off...
Chuetsu Pulp & Paper Lifts Dividend as Profit Outlook Softens
May 14, 2026
Chuetsu Pulp Paper reported fiscal 2026 consolidated net sales of ¥110.4 billion, down slightly year on year, while operating and ordinary profit fell sharply as margins weakened, but profit attributable to owners of parent jumped 38.6% to &...
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 16, 2026