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

• Market Cap: ¥3.89B
• Dividend Yield: N/A
• Average Volume (3M): 9.15K
• Price to Earnings (P/E): 110.7
• Beta (1Y): 1.26
• Revenue Growth: 13.57%
• EPS Growth: 62.43%
• Country: JP
• Employees: 640
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -27.42
• Shares Outstanding: 10,172,676
• 10 Day Avg. Volume: 6,710
• 30 Day Avg. Volume: 9,153
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥396.00
• Price Target Upside: 1.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥396.00 ▲(1.54% Upside)

AWA PAPER & TECHNOLOGICAL COMPANY, Inc. has a moderate overall stock score driven by financial performance challenges, including high leverage and low profitability. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest caution for potential investors.

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, 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 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	17.12B	17.12B	16.12B	17.31B	15.02B	12.55B
Gross Profit	2.74B	2.74B	2.57B	2.73B	2.61B	1.89B
EBITDA	1.00B	1.00B	1.08B	743.46M	1.08B	589.02M
Net Income	36.71M	35.87M	52.45M	242.67M	282.82M	-444.90M
Balance Sheet
Total Assets	27.19B	27.19B	21.25B	16.27B	15.53B	15.74B
Cash, Cash Equivalents and Short-Term Investments	988.73M	988.73M	1.11B	539.97M	555.89M	635.76M
Total Debt	12.60B	12.60B	7.75B	4.12B	4.41B	5.62B
Total Liabilities	19.61B	19.61B	14.36B	9.81B	9.16B	9.64B
Stockholders Equity	5.38B	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: Neutral
• Last Price: 390.00
• 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 Neutral. The current price of 390 is below the 20-day moving average (MA) of 391.95, below the 50-day MA of 392.52, and below the 200-day MA of 410.94, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥108.69B	15.45	5.64%	3.63%	5.74%	-42.24%
3877	75 Outperform	¥23.62B	19.77	3.09%	4.24%	3.05%	-63.52%
3864	73 Outperform	¥30.90B	9.98	5.09%	2.16%	-9.91%	-5.64%
3708	72 Outperform	¥55.04B	5.24	4.58%	2.61%	8.71%	-24.08%
3878	71 Outperform	¥8.23B	11.81	4.92%	1.84%	1.75%	19.70%
3896	53 Neutral	¥3.89B	110.73	―	―	13.57%	62.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%