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

• Market Cap: ¥3.21B
• Dividend Yield: N/A
• Average Volume (3M): 20.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 11.79%
• EPS Growth: -1.56%
• Country: JP
• Employees: 640
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -18.78
• Shares Outstanding: 10,172,676
• 10 Day Avg. Volume: 27,680
• 30 Day Avg. Volume: 20,860
• PEG Ratio: -3.63
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -0.84
• 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: 50 Neutral
• Price Target: ¥351.00 ▲(9.01% Upside)

The overall stock score reflects moderate financial performance with significant challenges in profitability and cash flow management. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The lack of earnings call data and corporate events further limits positive outlook.

Positive Factors

Revenue Growth

The company's ability to grow revenue indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Innovative Technological Solutions

Investment in R&D for technological solutions enhances production efficiency and sustainability, providing a competitive edge and attracting eco-conscious clients.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single market, enhancing resilience and stability in varying economic conditions.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Low Profitability

Low profitability margins suggest challenges in cost management and pricing power, which could hinder long-term financial health and competitiveness.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues and limits the company's ability to fund operations and growth without external financing.

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

Company Description

Awa Paper & Technological Company, Inc. manufactures and sells papers worldwide. It provides air filter media, polyolefin sheets, base papers, cabin filter media, heat radiation sheets and fins, carbon fiber reinforced plastics, ceramic sheets, and cushion papers, as well as graphitic, carbon fiber, activated carbon fiber, and activated carbon. The company also offers filter media, friction materials, fuel filter media, glass fiber papers, impregnated papers, formaldehyde decomposition and absorption sheets, reverse osmosis membrane backing papers, polyester sheets, and membrane bioreactors, as well as nano coat, oil, and process filter medias. Its products are used in various applications, such as liquid processing, gas processing, engines, automobiles, national land development, industrial, information and communication, building materials, air conditioning, home electronics, medical and welfare, agricultural, and general consumer goods. The company was founded in 1916 and is headquartered in Tokushima, Japan.

How the Company Makes Money

AWA PAPER & TECHNOLOGICAL COMPANY generates revenue primarily through the sale of its paper products, which include a variety of specialty papers tailored to specific industry needs. Key revenue streams include direct sales to businesses, contracts with large manufacturers, and partnerships with distributors and retailers to expand market reach. Additionally, the company invests in research and development to create innovative technological solutions that improve production processes, which are offered as value-added services to existing clients. Significant partnerships with industry leaders and participation in sustainability initiatives also contribute to its earnings by enhancing brand reputation and attracting eco-conscious clients.

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. Financial Statement Overview

Summary

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. shows moderate financial performance with revenue growth but faces challenges in profitability and cash flow management. High leverage and low return on equity indicate financial risks that need addressing to ensure long-term stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.74B	17.12B	16.12B	17.31B	15.02B	12.55B
Gross Profit	2.66B	2.74B	2.57B	2.73B	2.61B	1.89B
EBITDA	1.06B	1.00B	1.08B	743.46M	1.08B	589.02M
Net Income	-75.92M	35.87M	52.45M	242.67M	282.82M	-444.90M
Balance Sheet
Total Assets	26.70B	27.19B	21.25B	16.27B	15.53B	15.74B
Cash, Cash Equivalents and Short-Term Investments	842.64M	988.73M	1.11B	539.97M	555.89M	635.76M
Total Debt	14.04B	12.60B	7.75B	4.12B	4.41B	5.62B
Total Liabilities	19.65B	19.61B	14.36B	9.81B	9.16B	9.64B
Stockholders Equity	4.99B	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: 322.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 322 is below the 20-day moving average (MA) of 330.80, below the 50-day MA of 346.66, and below the 200-day MA of 382.93, indicating a bearish trend. The MACD of -6.06 indicates Negative momentum. The RSI at 34.54 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, 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	75 Outperform	¥77.42B	36.84	―	3.19%	4.06%	-73.92%
3708	71 Outperform	¥58.50B	14.30	―	2.67%	6.26%	-11.38%
3864	64 Neutral	¥28.89B	8.65	3.95%	2.31%	-10.04%	43.13%
3878	64 Neutral	¥7.97B	14.07	―	1.90%	-0.17%	-37.01%
3877	62 Neutral	¥27.04B	37.23	―	3.72%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3896	50 Neutral	¥3.21B	-14.55	―	―	11.79%	-1.56%