IMURA & Co.,Ltd. (3955) AI Stock Analysis

• Market Cap: ¥10.81B
• Dividend Yield: 3%
• Average Volume (3M): 5.57K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.39
• Revenue Growth: 4.22%
• EPS Growth: 13.08%
• Country: JP
• Employees: 994
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -8.54
• Shares Outstanding: 10,729,370
• 10 Day Avg. Volume: 4,530
• 30 Day Avg. Volume: 5,566
• PEG Ratio: -0.68
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -76.50
• 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: 79 Outperform
• Price Target: ¥1,249.00 ▲(23.79% Upside)

IMURA & Co., Ltd. receives a strong overall stock score due to its solid financial performance, favorable technical indicators, and attractive valuation. The company's stable balance sheet and low P/E ratio are significant strengths, while technical analysis supports a positive trend. However, attention to revenue growth and capital expenditure management could further enhance its financial health.

Positive Factors

Strong balance sheet / low leverage

Minimal debt and a high equity ratio give IMURA durable financial resilience. This reduces refinancing and liquidity risk, supports consistent operations through cycles, and provides flexibility to fund R&D, targeted capex, or strategic partnerships without pressuring cash flow.

Stable profitability and margins

Consistent ~27% gross margins and steady EBIT/EBITDA margins indicate durable manufacturing economics and pricing power in specialty chemicals. The recent net margin uptick shows operational leverage that can sustain reinvestment and protect competitiveness over the medium term.

Consistent operating cash generation

Healthy operating cash flow relative to income shows the core business converts earnings into cash reliably. This underpins dividend capacity, working capital needs and strategic investment funding, reinforcing long-term financial stability despite episodic capex swings.

Negative Factors

Negative and volatile free cash flow

Fluctuating and recently negative free cash flow suggests capex timing or elevated investment needs. If persistent, this erodes internally available funding for growth and dividends, increasing reliance on external financing and raising long-term financial flexibility risk.

Sluggish revenue growth with recent decline

Modest historical revenue growth and a recent minor decline point to limited top-line momentum. In specialty chemicals, sustained low growth can constrain scale benefits, limit margin expansion opportunities, and necessitate new products or market expansion to drive long-term shareholder returns.

Moderate return on equity

A moderate ROE indicates the company generates only middling returns on shareholder capital. Over time this may limit value creation versus higher-return peers unless management improves operational efficiency, accelerates growth, or reallocates capital to higher-return initiatives.

IMURA & Co.,Ltd. Business Overview & Revenue Model

Company Description

IMURA & Co.,Ltd. engages in the manufacture and sale of paper and other products in Japan. The company operates through Package Solutions, Mailing Services, and Others segments. It offers paper products, such as envelopes and bags. The company is also involved in the planning and production of print and direct mail; and provision of sealing products, shipping, storage, and information processing businesses. In addition, it engages in the advertising agency business; sale of computers and peripheral equipment; and development and production of software, as well as provides inkjet printing services. The company was formerly known as Imura Envelope Co., Inc. and changed its name to IMURA & Co.,Ltd. in January 2023. IMURA & Co.,Ltd. was founded in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

IMURA & Co., Ltd. generates revenue through the production and sale of its chemical products, which are sold to a diverse range of clients in the pharmaceutical, cosmetic, and industrial sectors. The company’s revenue model is based on direct sales, long-term contracts, and partnerships with other businesses that require specialized chemical formulations. Key revenue streams include bulk sales of raw materials, customized chemical solutions, and licensing agreements for proprietary technologies. Additionally, IMURA & Co., Ltd. benefits from strategic collaborations with research institutions and industry partners, which help to expand its product offerings and market reach, ultimately contributing to its earnings.

IMURA & Co.,Ltd. Financial Statement Overview

Summary

IMURA & Co., Ltd. demonstrates solid financial performance with strong profitability and a stable balance sheet. The income statement indicates good profitability, though revenue growth needs improvement. The balance sheet reflects financial stability with low leverage risk, while cash flow shows strong operational cash flows but concerns about capital expenditure management.

Income Statement

The company shows consistent gross profit margins around 27%, with a slight increase in net profit margin in the latest year, reaching 3.7%. Revenue growth is relatively stable, though there was a recent minor decline. The EBIT and EBITDA margins are steady, reflecting robust operational efficiency. Overall, the income statement indicates good profitability with some room for improvement in revenue growth.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio due to minimal debt levels. The equity ratio is high, indicating solid financial stability. Return on Equity (ROE) is moderate, suggesting efficient use of equity to generate profits. Overall, the balance sheet reflects financial stability and low leverage risk.

Cash Flow

Operating cash flow remains positive, but free cash flow fluctuates, turning negative in the latest period. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. However, the negative free cash flow highlights potential challenges in managing capital expenditures. Overall, the cash flow statement shows strong operational cash flows with some concerns about capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.93B	20.90B	20.87B	21.74B	20.23B	21.24B
Gross Profit	5.97B	5.64B	5.61B	5.76B	5.14B	5.06B
EBITDA	2.65B	2.11B	2.11B	2.10B	2.04B	1.58B
Net Income	1.09B	771.00M	950.00M	1.02B	994.00M	660.00M
Balance Sheet
Total Assets	24.51B	23.35B	20.56B	19.67B	19.35B	18.67B
Cash, Cash Equivalents and Short-Term Investments	2.86B	2.82B	3.14B	2.76B	3.98B	2.92B
Total Debt	2.04B	2.19B	68.00M	78.00M	89.00M	98.00M
Total Liabilities	6.91B	6.59B	4.33B	4.34B	4.55B	4.61B
Stockholders Equity	17.53B	16.59B	16.21B	15.32B	14.78B	14.05B
Cash Flow
Free Cash Flow	0.00	-128.00M	458.00M	-541.00M	1.00B	856.00M
Operating Cash Flow	0.00	1.71B	1.97B	807.00M	1.56B	1.60B
Investing Cash Flow	0.00	-3.03B	-1.24B	-1.34B	-189.00M	-877.00M
Financing Cash Flow	0.00	1.05B	-314.00M	-694.00M	-325.00M	-101.00M

IMURA & Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1009.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3955, the sentiment is Positive. The current price of 1009 is below the 20-day moving average (MA) of 1009.00, above the 50-day MA of 997.56, and above the 200-day MA of 978.08, indicating a bullish trend. The MACD of 10.92 indicates Negative momentum. The RSI at 89.07 is Negative, neither overbought nor oversold. The STOCH value of 61.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3955.

IMURA & Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3955	79 Outperform	¥10.81B	10.77	―	3.00%	4.22%	13.08%
3945	78 Outperform	¥4.28B	4.30	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥8.54B	10.67	―	3.00%	-2.03%	-23.36%
3895	66 Neutral	¥3.33B	5.04	―	4.43%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9929	56 Neutral	¥4.46B	55.77	―	2.62%	-1.03%	-43.05%
3168	54 Neutral	¥11.03B	64.26	―	3.37%	0.48%	-138.12%