AWA PAPER & TECHNOLOGICAL COMPANY, Inc. (3896) AI Stock Analysis

• Market Cap: ¥3.73B
• Dividend Yield: N/A
• Average Volume (3M): 6.77K
• Price to Earnings (P/E): 104.6
• Beta (1Y): 1.27
• Revenue Growth: 6.26%
• EPS Growth: -31.63%
• Country: JP
• Employees: 640
• Sector: Basic Materials
• Sector Strength: 75
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 21.11
• Shares Outstanding: 10,172,676
• 10 Day Avg. Volume: 7,870
• 30 Day Avg. Volume: 6,770
• PEG Ratio: -2.02
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 80.96
• 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: ¥388.00
• Price Target Upside: 3.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ¥388.00 ▲(3.19%Upside)

AWA PAPER & TECHNOLOGICAL COMPANY, Inc.'s stock score is primarily influenced by its moderate financial performance and bearish technical indicators. The company's high leverage and low profitability pose financial risks. Additionally, a high P/E ratio suggests overvaluation, which, combined with weak technical signals, limits the stock's attractiveness.

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

Company Description

AWA 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 Money

AWA 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.24B	17.12B	16.12B	17.31B	15.02B	12.55B
Gross Profit	2.52B	2.74B	2.57B	2.73B	2.61B	1.89B
EBITDA	896.41M	1.00B	1.08B	743.46M	1.08B	589.02M
Net Income	-252.62M	35.87M	52.45M	242.67M	282.82M	-444.90M
Balance Sheet
Total Assets	25.95B	27.19B	21.25B	16.27B	15.53B	15.74B
Cash, Cash Equivalents and Short-Term Investments	839.00M	988.73M	1.11B	539.97M	555.89M	635.76M
Total Debt	13.27B	12.60B	7.75B	4.12B	4.41B	5.62B
Total Liabilities	18.87B	19.61B	14.36B	9.81B	9.16B	9.64B
Stockholders Equity	5.07B	5.38B	5.13B	4.95B	4.54B	4.27B
Cash Flow
Free Cash Flow	0.00	-4.92B	-2.97B	85.90M	1.29B	-439.75M
Operating Cash Flow	0.00	160.87M	792.17M	762.45M	1.52B	199.17M
Investing Cash Flow	0.00	-5.18B	-3.77B	-360.68M	-316.05M	-472.63M
Financing Cash Flow	0.00	4.82B	3.51B	-459.53M	-1.29B	220.88M

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 376.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3896, the sentiment is Negative. The current price of 376 is below the 20-day moving average (MA) of 385.25, below the 50-day MA of 395.82, and below the 200-day MA of 427.02, indicating a bearish trend. The MACD of -5.25 indicates Positive momentum. The RSI at 31.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3896.

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8032	77 Outperform	¥94.25B	10.27		3.96%	3.80%	-22.03%
3877	75 Outperform	¥22.28B	12.16		4.19%	2.95%	-53.11%
3708	72 Outperform	¥44.71B	12.54		3.08%	9.57%	-20.99%
Sector *	70 Outperform	¥175.46B	11.07	6.29%	3.46%	3.91%	3.49%
3878	66 Neutral	¥7.35B	9.95		2.07%	2.20%	28.34%
3864	65 Neutral	€28.98B	6.51	4.96%	2.30%	-9.06%	4.04%
3896	49 Neutral	¥3.73B	104.61		―	6.26%	-31.63%