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

• Market Cap: ¥7.21B
• Dividend Yield: 2.08%
• Average Volume (3M): 6.74K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.39
• Revenue Growth: 1.53%
• EPS Growth: -36.83%
• Country: JP
• Employees: 196
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): 169.64
• Shares Outstanding: 5,500,000
• 10 Day Avg. Volume: 1,390
• 30 Day Avg. Volume: 6,743
• PEG Ratio: 0.00
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.41
• 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

• Rating: 83 Outperform
• Price Target: ¥1,698.00 ▲(17.51%Upside)

The overall stock score is driven primarily by strong financial performance, including robust revenue growth, profitability, and cash flow management. The attractive valuation metrics further enhance the score. Technical analysis indicates positive price trends, though momentum is neutral. The absence of earnings call and corporate events data did not impact the score.

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

Company Description

Okayama Paper Industries Co., Ltd. (3892) is a Japanese company primarily engaged in the manufacturing and sale of paper products. The company operates in the pulp and paper industry, producing a wide range of paper products, including but not limited to, printing paper, industrial paper, and packaging materials. Known for its commitment to quality and sustainability, Okayama Paper Industries serves various sectors, including publishing, packaging, and industrial applications.

How the Company Makes Money

Okayama Paper Industries Co., Ltd. makes money through the production and sale of various paper products. The company's revenue streams are predominantly derived from selling its paper products to businesses in the publishing, packaging, and industrial sectors. Additionally, the company might engage in strategic partnerships or collaborations that allow it to expand its market reach or improve its production efficiencies. The company's focus on high-quality and sustainable paper solutions can also play a significant role in maintaining customer loyalty and ensuring a steady demand for its products.

Okayama Paper Industries Co., Ltd. Financial Statement Overview

Summary

The company showcases strong revenue growth of 5.9%, improved gross and net profit margins, and robust cash flow performance with a free cash flow growth rate of 518.0%. The low leverage and improved equity position further underscore its financial stability.

Income Statement

Okayama Paper Industries Co., Ltd. shows strong performance with a significant increase in total revenue from ¥10,841.73 million in 2022 to ¥11,511.85 million in 2023, reflecting a revenue growth rate of approximately 5.9%. The gross profit margin improved from 20.5% to 28.8%, indicating enhanced operational efficiency. Net profit margin increased from 4.5% to 10.1%, demonstrating strong profitability. Additionally, EBIT and EBITDA margins improved significantly, showcasing robust core business operations.

Balance Sheet

The company's balance sheet is strong, with a substantial increase in stockholders' equity from ¥10,534.47 million in 2023 to ¥12,236.47 million in 2024. The debt-to-equity ratio is low at 0.004, indicating low leverage. The equity ratio improved to 68.6%, highlighting financial stability. The return on equity increased from 4.7% to 9.5%, reflecting improved shareholder returns. Overall, the balance sheet is stable with minimal debt risk.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of approximately 518.0%, driven by increased operating cash flows. The operating cash flow to net income ratio is robust at 1.66, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is exceptionally strong at 1.43, highlighting effective cash management. Overall, the company exhibits excellent cash flow performance, supporting future investments and debt repayment.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
11.64B	11.51B	10.87B	10.08B	9.40B	10.03B
	Gross Profit
3.10B	3.32B	2.30B	2.25B	2.33B	2.84B
	EBIT
1.32B	1.68B	613.83M	687.68M	824.60M	1.35B
	EBITDA
1.57B	1.99B	1.01B	1.19B	1.20B	1.67B
	Net Income Common Stockholders
912.14M	1.16B	494.92M	591.13M	616.82M	972.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.21B	6.60B	4.96B	5.03B	4.37B	4.36B
	Total Assets
17.63B	17.82B	14.99B	14.88B	13.49B	13.59B
	Total Debt
0.00	48.48M	72.79M	36.55M	117.36M	108.22M
	Net Debt
-5.21B	-6.55B	-4.89B	-4.99B	-4.25B	-4.25B
	Total Liabilities
5.14B	5.59B	4.46B	4.42B	3.76B	4.34B
	Stockholders Equity
12.49B	12.24B	10.53B	10.45B	9.73B	9.25B
Cash Flow		Free Cash Flow
0.00	1.65B	267.31M	602.44M	47.69M	785.68M
	Operating Cash Flow
0.00	1.92B	551.99M	878.47M	859.22M	1.09B
	Investing Cash Flow
0.00	-185.50M	-197.13M	-119.75M	-752.71M	-247.49M
	Financing Cash Flow
0.00	-107.36M	-420.23M	-96.65M	-98.45M	-87.14M

Okayama Paper Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1445.00
• 50DMA: Positive
• 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:3892, the sentiment is Positive. The current price of 1445 is below the 20-day moving average (MA) of 1447.96, above the 50-day MA of 1419.44, and above the 200-day MA of 1337.04, indicating a neutral trend. The MACD of 2.54 indicates Positive momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 71.30 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
3892	83 Outperform	¥7.21B	8.51		2.08%	1.53%	-36.83%
3945	79 Outperform	¥3.79B	3.76		0.60%	2.76%	16.03%
3955	78 Outperform	¥10.35B	10.59		2.95%	3.97%	4.71%
3895	68 Neutral	¥3.49B	5.13		0.45%	1.50%	-0.74%
3168	63 Neutral	¥7.67B	22.30		3.70%	14.31%	57.25%
9929	57 Neutral	¥4.18B	35.00		2.77%	-0.57%	-14.16%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%