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AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (JP:3896)
:3896
Japanese Market
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AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (3896) AI Stock Analysis

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JP:3896

AWA PAPER & TECHNOLOGICAL COMPANY, Inc.

(3896)

Rating:61Neutral
Price Target:
¥412.00
▲(4.04%Upside)
The stock's overall score reflects moderate financial performance with significant leverage risks, lackluster technical indicators, and an unattractive valuation. The high P/E ratio and absence of dividend yield suggest the stock is overvalued, while its financial health requires improvements in profitability and cash flow management.

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (3896) vs. iShares MSCI Japan ETF (EWJ)

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Business Overview & Revenue Model

Company DescriptionAWA PAPER & TECHNOLOGICAL COMPANY, Inc. operates in the paper industry, specializing in the development, production, and sale of paper products and related technologies. The company focuses on delivering innovative solutions that cater to various sectors, including industrial, consumer, and specialty markets. With a commitment to sustainability and quality, AWA PAPER & TECHNOLOGICAL COMPANY, Inc. offers a diverse range of products that meet the evolving demands of its customers.
How the Company Makes MoneyAWA PAPER & TECHNOLOGICAL COMPANY, Inc. generates revenue primarily through the sale of its paper products and related technologies. The company's key revenue streams include the production and distribution of specialty paper products for industrial applications, consumer paper goods, and customized solutions for niche markets. Additionally, AWA PAPER & TECHNOLOGICAL COMPANY, Inc. may engage in strategic partnerships and collaborations to enhance its product offerings and market reach, further contributing to its earnings. The company's focus on innovation and sustainability also plays a crucial role in attracting and retaining clients, thereby supporting its financial growth.

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Financial Statement Overview

Summary
AWA PAPER & TECHNOLOGICAL COMPANY, Inc. shows moderate financial performance with potential growth in revenue but faces challenges in profitability and cash flow management. High leverage and low return on equity point to financial risks that need addressing to ensure long-term stability and shareholder value.
Income Statement
68
Positive
AWA PAPER & TECHNOLOGICAL COMPANY, Inc. has demonstrated moderate revenue growth with a recent increase from 16.1 billion to 17.1 billion. The gross profit margin is stable at around 16%, while the net profit margin is relatively low at 0.2%. EBIT and EBITDA margins are modest, indicating room for efficiency improvements. Recent annual revenue growth suggests positive momentum, but the low net income and fluctuating profitability metrics suggest challenges in achieving sustainable profit levels.
Balance Sheet
62
Positive
The company's balance sheet shows a high debt-to-equity ratio of 2.34, indicating significant leverage which could pose risks if cash flows fluctuate. Return on equity is low at 0.67%, reflecting limited profitability relative to shareholder investment. The equity ratio is stable but modest at 19.8%, suggesting moderate financial stability. The firm needs to manage its debt level and improve ROE to enhance financial health.
Cash Flow
55
Neutral
The cash flow statement reveals a negative free cash flow trend due to high capital expenditures. Although operating cash flow remains positive, the free cash flow to net income ratio is negative, indicating challenges in generating cash relative to net income. The operating cash flow to net income ratio is positive yet low, suggesting potential liquidity pressures. Cash flow management needs improvement to support financial flexibility.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue17.12B16.12B17.31B15.02B12.55B
Gross Profit2.74B2.57B2.73B2.61B1.89B
EBITDA1.00B1.08B743.46M1.08B589.02M
Net Income35.87M52.45M242.67M282.82M-444.90M
Balance Sheet
Total Assets27.19B21.25B16.27B15.53B15.74B
Cash, Cash Equivalents and Short-Term Investments988.73M1.11B539.97M555.89M635.76M
Total Debt12.60B7.75B4.12B4.41B5.62B
Total Liabilities19.61B14.36B9.81B9.16B9.64B
Stockholders Equity5.38B5.13B4.95B4.54B4.27B
Cash Flow
Free Cash Flow-4.92B-2.97B85.90M1.29B-439.75M
Operating Cash Flow160.87M792.17M762.45M1.52B199.17M
Investing Cash Flow-5.18B-3.77B-360.68M-316.05M-472.63M
Financing Cash Flow4.82B3.51B-459.53M-1.29B220.88M

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price396.00
Price Trends
50DMA
388.84
Positive
100DMA
397.94
Positive
200DMA
422.81
Negative
Market Momentum
MACD
2.69
Negative
RSI
59.90
Neutral
STOCH
73.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3896, the sentiment is Positive. The current price of 396 is above the 20-day moving average (MA) of 383.95, above the 50-day MA of 388.84, and below the 200-day MA of 422.81, indicating a neutral trend. The MACD of 2.69 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3896.

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥97.97B10.71
3.82%3.80%-22.03%
75
Outperform
¥22.76B12.48
4.11%2.95%-53.11%
72
Outperform
¥45.57B12.91
3.05%9.57%-20.99%
71
Outperform
¥7.07B9.58
2.15%2.20%28.34%
71
Outperform
¥176.25B10.176.29%3.16%3.73%-0.94%
66
Neutral
¥29.96B6.804.96%2.28%-9.06%4.04%
61
Neutral
¥3.95B110.17
6.26%-31.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
396.00
-92.00
-18.85%
JP:3708
Tokushu Tokai Paper Co., Ltd.
3,970.00
522.25
15.15%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,707.00
402.82
30.89%
JP:3878
Tomoegawa Corporation
700.00
-74.22
-9.59%
JP:8032
Japan Pulp and Paper Co. Ltd.
658.00
87.11
15.26%
JP:3864
Mitsubishi Paper Mills
681.00
71.41
11.71%
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: Jul 24, 2025