Okayama Paper Industries Co., Ltd. (3892) AI Stock Analysis

• Market Cap: ¥7.87B
• Dividend Yield: 3.19%
• Average Volume (3M): 2.27K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.44
• Revenue Growth: -2.03%
• EPS Growth: -23.36%
• Country: JP
• Employees: 196
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 48.05
• Shares Outstanding: 5,500,000
• 10 Day Avg. Volume: 4,590
• 30 Day Avg. Volume: 2,273
• PEG Ratio: -0.27
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -3.24
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,626.00 ▲(3.77% Upside)

Okayama Paper Industries Co., Ltd. has a solid valuation with a low P/E ratio and attractive dividend yield, contributing positively to the stock score. Technical analysis shows a positive trend, although potential overbought conditions warrant caution. Financial performance is mixed, with strong balance sheet stability offset by challenges in revenue growth and cash flow management.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Sustainable Practices

Commitment to sustainability and innovation positions the company to capture opportunities in eco-friendly markets, enhancing its competitive edge and long-term growth potential.

Market Diversification

Diversified market presence reduces dependency on a single market, mitigating risks and ensuring stable revenue streams across various economic conditions.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates potential difficulties in market expansion and customer retention, which could impact long-term profitability and market position.

Cash Flow Challenges

Negative cash flow trends highlight inefficiencies in cash management, potentially affecting the company's ability to fund operations and invest in future growth.

Decreasing Profit Margins

Decreasing profit margins suggest challenges in cost control and pricing power, which may hinder the company's ability to maintain profitability in a competitive market.

Okayama Paper Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Okayama Paper Industries Co., Ltd. engages in manufacture and sale of paper products in Japan and internationally. It provides core paper, paper tube base paper, paper boards, and flat plate, and decorative cardboards; cosmetic cardboard; and digital high speed printing services. Okayama Paper Industries Co., Ltd. was incorporated in 1907 and is headquartered in Okayama, Japan.

How the Company Makes Money

Okayama Paper Industries generates revenue through several key streams, primarily from the sale of its paper products, which include packaging paper, printing paper, and specialty papers. The company benefits from long-term contracts with major clients in various industries, ensuring consistent demand for its products. Additionally, Okayama Paper Industries has established partnerships with suppliers and distributors that enhance its market reach and operational efficiency. Factors contributing to its earnings include a focus on research and development to innovate new products, cost management strategies that optimize production efficiency, and an increasing global demand for sustainable paper solutions.

Okayama Paper Industries Co., Ltd. Financial Statement Overview

Summary

Okayama Paper Industries Co., Ltd. faces challenges in revenue growth and cash flow management, impacting profitability and liquidity. However, the company maintains a strong balance sheet with low leverage, providing a buffer against financial instability.

Income Statement

Okayama Paper Industries Co., Ltd. has shown a decline in revenue growth rate and gross profit margin over the past year, indicating challenges in maintaining sales and cost efficiency. The net profit margin has also decreased, reflecting reduced profitability. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite the revenue decline.

Balance Sheet

The company has a strong equity base with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The return on equity has decreased slightly, but remains positive, showing the company's ability to generate returns on shareholders' investments. The equity ratio is healthy, reflecting a solid financial structure.

Cash Flow

The cash flow statement reveals a significant decline in both operating and free cash flow, with negative growth rates indicating cash management challenges. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.61B	11.52B	11.51B	10.87B	10.08B	9.40B
Gross Profit	2.96B	2.86B	3.32B	2.30B	2.25B	2.33B
EBITDA	1.50B	1.31B	1.99B	913.35M	1.19B	1.13B
Net Income	785.80M	798.70M	1.16B	494.92M	591.13M	616.82M
Balance Sheet
Total Assets	16.35B	16.59B	17.82B	14.99B	14.88B	13.49B
Cash, Cash Equivalents and Short-Term Investments	5.07B	4.47B	6.60B	4.96B	5.03B	4.37B
Total Debt	44.30M	38.69M	48.48M	72.79M	36.55M	117.36M
Total Liabilities	3.69B	3.65B	5.59B	4.46B	4.42B	3.76B
Stockholders Equity	12.66B	12.94B	12.24B	10.53B	10.45B	9.73B
Cash Flow
Free Cash Flow	0.00	-2.06B	1.65B	267.31M	602.44M	47.69M
Operating Cash Flow	0.00	-1.57B	1.92B	551.99M	878.47M	859.22M
Investing Cash Flow	0.00	-395.12M	-185.50M	-197.13M	-119.75M	-752.71M
Financing Cash Flow	0.00	-164.91M	-107.36M	-420.23M	-96.65M	-98.45M

Okayama Paper Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1567.00
• 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:3892, the sentiment is Positive. The current price of 1567 is above the 20-day moving average (MA) of 1536.91, above the 50-day MA of 1535.22, and above the 200-day MA of 1448.16, indicating a bullish trend. The MACD of 9.70 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3892.

Okayama Paper Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3955	79 Outperform	¥9.89B	9.02	―	3.02%	6.70%	12.10%
3945	78 Outperform	¥4.11B	4.13	―	3.35%	1.53%	20.73%
3892	70 Outperform	¥7.87B	9.04	―	3.19%	-2.03%	-23.36%
3895	66 Neutral	¥3.11B	4.71	―	4.42%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9929	56 Neutral	¥4.34B	54.21	―	2.65%	-1.03%	-43.05%
3168	52 Neutral	¥8.09B	―	―	3.51%	0.48%	-138.12%