Pack Corporation (3950) AI Stock Analysis

• Market Cap: ¥74.02B
• Dividend Yield: 6.86%
• Average Volume (3M): 105.98K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.56
• Revenue Growth: 2.85%
• EPS Growth: -9.13%
• Country: JP
• Employees: 1,196
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 18.06
• Shares Outstanding: 59,700,000
• 10 Day Avg. Volume: 92,560
• 30 Day Avg. Volume: 105,983
• PEG Ratio: 0.29
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 9.69
• 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: 80 Outperform
• Price Target: ¥1,330.00 ▲(8.13% Upside)

Pack Corporation's strong financial performance, characterized by consistent revenue growth, healthy profit margins, and a robust balance sheet, is the most significant factor driving the stock score. The technical analysis supports a positive short-term trend, while the attractive valuation with a low P/E ratio and high dividend yield further enhances the stock's appeal.

Pack Corporation Business Overview & Revenue Model

Company Description

The Pack Corporation manufactures and sells paper packaging products in Japan and internationally. The company offers paper bags, plastic bags, parcel delivery bags, sewn bags, garment bags, and other bags; paper boxes, paper trays, clear cases, and other types of boxes in various shapes; and corrugated shipping boxes, large corrugated boxes for packing major appliances, and cushioning materials. It also provides gift boxes, drawstring bags, wrapping papers, seals, tags, ribbons, and other products for store supplies; film and flexible packaging products for food products, daily necessities, hygiene products, pharmaceuticals, and other product categories; and eco products. In addition, the company offers offset rotary printing and gravure printing services for shopping bags, decorative corrugated boards, paper containers, and other products; and printing services for paper containers, paper bags, wrapping papers, posters, pamphlets, flyers, product catalogs, magazines, books, shopping bags, packaging, seals, and others. The Pack Corporation was founded in 1878 and is headquartered in Osaka, Japan.

How the Company Makes Money

Pack Corporation makes money primarily through the manufacturing and sales of its diverse range of packaging products. The company's revenue model is based on selling packaging materials to businesses across multiple industries, including food and beverage, consumer goods, and industrial sectors. Key revenue streams include the sale of both standard and customized packaging solutions. Significant factors contributing to its earnings include a strong focus on sustainability, which attracts environmentally conscious clients, and strategic partnerships with major corporations that require consistent and reliable packaging supplies. Additionally, the company's investment in research and development drives innovation, allowing it to maintain a competitive edge and cater to the evolving market demands.

Pack Corporation Financial Statement Overview

Summary

Pack Corporation exhibits a strong financial position with consistent revenue growth, healthy profit margins, and a solid balance sheet characterized by low leverage. Cash flow improvements further bolster the company's financial health, positioning it well within the packaging and containers industry.

Income Statement

Pack Corporation has demonstrated a consistent revenue growth trend with a notable increase of 3.8% from 2023 to 2024. The gross profit margin remains strong at 25.2%, showcasing effective cost management. Net profit margin improved to 6.2%, indicating enhanced profitability. The EBIT margin is sound at 7.9%, and the EBITDA margin of 10.3% suggests efficient operations, contributing to a high score.

Balance Sheet

The company's balance sheet is robust, with a very low debt-to-equity ratio of 0.0011, reflecting minimal leverage and financial risk. Return on equity (ROE) is strong at 8.5%, indicating effective use of shareholder funds to generate profits. The equity ratio is high at 72.1%, highlighting a sound financial position with substantial equity supporting total assets.

Cash Flow

Cash flow analysis reflects positive developments, with a significant free cash flow turnaround from negative to positive in 2024. Free cash flow to net income ratio is favorable at 0.37, though operating cash flow to net income ratio of 1.12 is moderate, indicating stable operational cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.23B	101.46B	97.71B	89.06B	80.18B	78.44B
Gross Profit	24.84B	25.60B	24.77B	21.68B	19.01B	18.32B
EBITDA	9.97B	10.43B	10.02B	7.92B	6.24B	5.42B
Net Income	5.75B	6.32B	5.65B	4.06B	2.82B	2.39B
Balance Sheet
Total Assets	98.53B	103.29B	98.85B	94.36B	87.42B	83.56B
Cash, Cash Equivalents and Short-Term Investments	26.39B	23.67B	24.42B	28.66B	27.08B	22.33B
Total Debt	521.00M	82.00M	34.00M	59.00M	85.00M	30.00M
Total Liabilities	23.42B	28.81B	27.69B	29.00B	25.39B	23.82B
Stockholders Equity	75.11B	74.48B	71.16B	65.37B	62.02B	59.71B
Cash Flow
Free Cash Flow	0.00	2.33B	-2.84B	1.84B	3.48B	157.00M
Operating Cash Flow	0.00	7.10B	4.44B	5.38B	7.22B	3.15B
Investing Cash Flow	0.00	-5.44B	-3.96B	-3.76B	-3.46B	-5.01B
Financing Cash Flow	0.00	-3.04B	-1.41B	-1.12B	-1.03B	-1.21B

Pack Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3950, the sentiment is Positive. The current price of 1230 is above the 20-day moving average (MA) of 1223.50, above the 50-day MA of 1205.28, and above the 200-day MA of 1118.03, indicating a bullish trend. The MACD of 7.40 indicates Negative momentum. The RSI at 64.87 is Neutral, neither overbought nor oversold. The STOCH value of 95.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3950.

Pack Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	80 Outperform	¥74.02B	12.28	―	6.86%	2.85%	-9.13%
7482	78 Outperform	¥29.28B	13.46	―	4.20%	5.42%	15.41%
7917	78 Outperform	€82.11B	12.07	7.53%	3.14%	5.44%	45.99%
7942	75 Outperform	¥63.58B	10.45	―	4.29%	0.83%	-9.16%
7504	72 Outperform	¥54.76B	15.28	―	2.92%	12.39%	9.81%
3946	68 Neutral	¥55.06B	7.49	―	3.70%	4.40%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Pack Corporation Corporate Events

The Pack Corporation Reports Mixed Financial Results for First Half of 2025

The Pack Corporation reported its consolidated financial results for the first half of 2025, showing a slight increase in net sales by 1.6% compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners, with respective decreases of 18.8%, 17.0%, and 19.0%. The company also conducted a stock split, which affected the earnings per share calculations. Despite the challenges in profitability, the equity-to-asset ratio improved to 76.2%, indicating a stronger financial position. The forecast for the full fiscal year ending December 31, 2025, anticipates a modest increase in net sales by 1.5%, but a decrease in profits, reflecting ongoing challenges in the market.