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

• Market Cap: ¥3.92B
• Dividend Yield: N/A
• Average Volume (3M): 15.99K
• Price to Earnings (P/E): 109.3
• Beta (1Y): 1.29
• Revenue Growth: 6.26%
• EPS Growth: -31.63%
• Country: JP
• Employees: 640
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 21.11
• Shares Outstanding: 10,172,676
• 10 Day Avg. Volume: 4,950
• 30 Day Avg. Volume: 15,986
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ¥388.00 ▼(-1.27%Downside)

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. 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

The company generates revenue primarily through the sale of its paper and technological products. Its key revenue streams include direct sales to industrial clients who use the company's specialty papers in various applications, such as automotive, electronics, and construction industries. AWA PAPER & TECHNOLOGICAL COMPANY, Inc. also collaborates with other companies and engages in partnerships to enhance its product offerings and expand its market reach, which contributes to its earnings. Additionally, the company may engage in research and development activities to innovate and improve its product lines, further driving sales and profitability.

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
	EBIT
216.52M	432.42M	354.77M	376.15M	269.39M	-153.83M
	EBITDA
896.41M	1.00B	1.08B	743.46M	1.08B	589.02M
	Net Income Common Stockholders
-252.62M	35.87M	52.45M	242.67M	282.82M	-444.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
839.00M	988.73M	1.11B	539.97M	555.89M	635.76M
	Total Assets
25.95B	27.19B	21.25B	16.27B	15.53B	15.74B
	Total Debt
13.27B	12.60B	7.75B	4.12B	4.41B	5.62B
	Net Debt
12.43B	11.61B	6.86B	3.58B	3.86B	4.99B
	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: 393.00
• 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 393 is below the 20-day moving average (MA) of 394.85, below the 50-day MA of 398.52, and below the 200-day MA of 435.43, indicating a bearish trend. The MACD of -2.58 indicates Negative momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 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
3877	75 Outperform	¥21.27B	11.66		4.39%	2.95%	-52.19%
8032	73 Outperform	¥90.23B	9.86		4.13%	3.80%	-22.03%
3708	72 Outperform	¥42.01B	11.90		3.28%	9.57%	-20.71%
3878	67 Neutral	¥6.84B	9.26		2.22%	2.20%	30.07%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
3896	49 Neutral	¥3.92B	109.34		―	6.26%	-31.63%
MPX		€161.82M	5.88	4.96%	2.63%	―	―