Superbag Company, Limited (3945) AI Stock Analysis

• Market Cap: ¥3.48B
• Dividend Yield: 3.33%
• Average Volume (3M): 3.42K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.41
• Revenue Growth: 1.53%
• EPS Growth: 20.73%
• Country: JP
• Employees: 399
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 182.00
• Shares Outstanding: 1,686,154
• 10 Day Avg. Volume: 2,310
• 30 Day Avg. Volume: 3,423
• PEG Ratio: 0.22
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 7.20
• 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: 78 Outperform
• Price Target: ¥2,661.00 ▼(-8.40% Downside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Superbag Company, Limited scores well due to its strong valuation and positive technical indicators. The financial performance is solid, though cash flow challenges need addressing. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Improved leverage and stronger equity base

A lower debt-to-equity ratio and stronger equity ratio materially improve financial flexibility and reduce interest burden, enabling durable capital allocation for operations and investments. The 20.66% ROE indicates management has translated equity into profitable returns, supporting sustainable shareholder value over months.

Turnaround to positive net profitability and revenue growth

Recovery from past losses into a positive net margin and continued revenue growth shows structural operational recovery and demand resilience. Sustained profitable operations over quarters suggest the business model is working again and provides a firmer base for reinvestment or deleveraging over the medium term.

Stable gross margin indicating efficient cost control

Stable gross margins reflect consistent input-cost management or pricing power within core operations, insulating the company from cyclical swings. This margin stability supports long-term cash generation potential and helps maintain operating profitability even if top-line growth moderates.

Negative Factors

Declining operating cash flow and weak cash conversion

A falling operating cash flow and FCF-to-net-income below 1 indicate limited cash conversion, constraining the firm's ability to fund capex, pay dividends, or repay debt without relying on external financing. Over months this weakness can limit strategic flexibility and increase funding risk.

Operating margin compression (EBIT decline)

Falling EBIT margin signals rising operating costs or weaker pricing power that can erode profitability even with modest revenue growth. If persistent, margin compression reduces internal funds for growth, weakens capacity to invest in competitiveness, and raises sensitivity to future cost shocks.

Slight contraction in total assets could constrain growth

A shrinking asset base may reflect lower production capacity or reduced investment and can cap expansion or responsiveness to new demand. Over a multi-month horizon, constrained asset growth limits ability to scale sales, upgrade equipment, or broaden product offerings without new capital.

Superbag Company, Limited Business Overview & Revenue Model

Company Description

Superbag Company, Limited manufactures and markets paper and plastic shopping bags in Japan and internationally. It operates through Paper Products, Chemicals, and Other Businesses segments. The company was formerly known as Fukuda Trading Co., Ltd. and changed its name to Superbag Company, Limited in June 1963. Superbag Company, Limited was founded in 1905 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Superbag Company, Limited Financial Statement Overview

Summary

Superbag Company, Limited has shown a commendable recovery in profitability and financial stability. The income statement reflects positive growth, and the balance sheet shows improved leverage and equity utilization. However, challenges in cash generation could impact future investments and growth.

Income Statement

Superbag Company, Limited has shown a consistent recovery in its financial performance over the past few years. The gross profit margin has remained stable, indicating efficient cost management. The net profit margin improved significantly from a negative position in 2022 to a positive 3.54% in 2025, reflecting a turnaround in profitability. Revenue growth has been positive, with a 2.76% increase in 2025 compared to 2024. However, the EBIT margin has decreased from 3.85% in 2024 to 3.27% in 2025, suggesting some pressure on operating efficiency. Overall, the income statement reflects a positive growth trajectory with some areas needing improvement.

Balance Sheet

The balance sheet of Superbag Company, Limited indicates a solid equity base with an equity ratio of 32.32% in 2025. The debt-to-equity ratio has improved to 0.66, down from 0.91 in 2024, showing a reduction in leverage and a stronger financial position. Return on equity has improved significantly to 20.66% in 2025, indicating effective use of equity to generate profits. Despite these strengths, the total assets have decreased slightly over the years, which could limit future growth potential.

Cash Flow

The cash flow statement shows a mixed picture. Operating cash flow has decreased from 2024 to 2025, indicating potential challenges in cash generation from operations. Free cash flow has also declined, but remains positive, suggesting the company can still fund its operations and investments. The free cash flow to net income ratio is 0.48 in 2025, showing that not all net income is being converted into free cash flow. While the company has managed to maintain positive cash flows, the downward trend in operating cash flow is a concern.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	27.73B	27.58B	26.84B	25.25B	25.13B	26.25B
Gross Profit	5.53B	5.50B	5.42B	4.80B	4.26B	4.88B
EBITDA	1.37B	1.37B	1.41B	808.00M	-250.00M	263.00M
Net Income	979.00M	976.00M	866.00M	473.00M	-642.00M	-383.00M
Balance Sheet
Total Assets	14.50B	14.90B	15.60B	14.35B	13.97B	14.55B
Cash, Cash Equivalents and Short-Term Investments	2.71B	2.83B	2.58B	2.19B	2.35B	1.59B
Total Debt	2.85B	3.13B	3.76B	3.96B	4.20B	4.67B
Total Liabilities	9.79B	10.17B	11.44B	11.37B	11.51B	11.49B
Stockholders Equity	4.70B	4.72B	4.14B	2.97B	2.44B	2.91B
Cash Flow
Free Cash Flow	0.00	468.00M	684.00M	-80.00M	339.00M	-275.00M
Operating Cash Flow	0.00	801.00M	1.04B	60.00M	500.00M	-118.00M
Investing Cash Flow	0.00	239.00M	-327.00M	30.00M	705.00M	19.00M
Financing Cash Flow	0.00	-763.00M	-357.00M	-255.00M	-575.00M	-147.00M

Superbag Company, Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2905.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3945, the sentiment is Negative. The current price of 2905 is above the 20-day moving average (MA) of 2545.40, above the 50-day MA of 2676.36, and above the 200-day MA of 2661.31, indicating a bearish trend. The MACD of -91.12 indicates Positive momentum. The RSI at 23.06 is Positive, neither overbought nor oversold. The STOCH value of 6.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3945.

Superbag Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3945	78 Outperform	¥3.48B	3.80	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥8.32B	8.81	―	3.00%	-2.03%	-23.36%
3895	64 Neutral	¥3.41B	5.54	―	4.43%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3955	58 Neutral	¥8.86B	10.13	―	3.00%	4.22%	13.08%
9929	56 Neutral	¥4.56B	26.76	―	2.62%	-1.03%	-43.05%
3168	51 Neutral	¥18.09B	4.90	―	3.37%	0.48%	-138.12%