Japan Pulp and Paper Co. Ltd. (8032) AI Stock Analysis

• Market Cap: ¥76.02B
• Dividend Yield: 3.19%
• Average Volume (3M): 212.03K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.56
• Revenue Growth: 4.06%
• EPS Growth: -73.92%
• Country: JP
• Employees: 4,157
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -1.99
• Shares Outstanding: 120,215,510
• 10 Day Avg. Volume: 153,100
• 30 Day Avg. Volume: 212,026
• PEG Ratio: -0.44
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 4.30
• 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): 12,050.84
• Revenue Forecast (FY): ¥78.59T

• Rating: 75 Outperform
• Price Target: ¥809.00 ▼(-0.74% Downside)

Japan Pulp and Paper Co. Ltd. has a solid overall stock score driven by stable financial performance and positive technical indicators. The company's valuation is reasonable, with an attractive dividend yield. The lack of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Stable Financial Performance

Stable financial performance with moderate revenue growth and strong cash flow generation indicates the company's ability to maintain operations and invest in growth opportunities, supporting long-term sustainability.

Strong Cash Flow Generation

Strong cash flow generation allows the company to reinvest in its business, pay down debt, and return capital to shareholders, enhancing financial flexibility and stability over time.

Diverse Revenue Streams

Diversification into chemical products and logistics services reduces reliance on traditional paper products, potentially increasing resilience against industry-specific downturns and enhancing long-term growth prospects.

Negative Factors

Decline in Net Income

A decline in net income and low return on equity suggest difficulties in maintaining profitability, which could impact the company's ability to generate shareholder value and invest in future growth.

Low Return on Equity

Low return on equity reflects limited efficiency in generating profits from shareholders' investments, which may hinder the company's attractiveness to investors and affect its ability to raise capital.

Pressure on Profit Margins

Decreasing net profit margins indicate rising costs or pricing pressures, which could limit the company's ability to sustain profitability and invest in growth initiatives, affecting long-term financial health.

Japan Pulp and Paper Co. Ltd. Business Overview & Revenue Model

Company Description

Japan Pulp and Paper Co. Ltd. (8032) is a leading company in the pulp and paper industry in Japan, engaged in the manufacturing, processing, and distribution of various paper products and packaging materials. The company operates across several segments, including paper and pulp, chemical products, and logistics. Its core products range from printing and writing papers to packaging materials and specialty papers, catering to diverse industries such as publishing, education, and retail.

How the Company Makes Money

Japan Pulp and Paper Co. Ltd. generates revenue primarily through the sale of its paper products and packaging solutions, which account for a significant portion of its income. The company has established long-term relationships with various industries, providing them with tailored products to meet specific needs. Additionally, Japan Pulp and Paper has diversified its revenue streams by engaging in the manufacturing of chemical products derived from pulp production and offering logistics services that enhance its supply chain efficiency. Strategic partnerships with suppliers and customers also play a crucial role in maintaining a steady flow of revenue, as they allow the company to optimize its operations and expand market reach.

Japan Pulp and Paper Co. Ltd. Financial Statement Overview

Summary

Japan Pulp and Paper Co. Ltd. demonstrates stable financial performance with moderate revenue growth and strong cash flow generation. However, the decline in net income and low return on equity indicate challenges in profitability and shareholder returns. The balance sheet is solid, but there is room for improvement in reducing debt levels.

Income Statement

The company has shown moderate revenue growth with a 3.8% increase from the previous year. Gross profit margin is steady at around 16.5%, while the net profit margin decreased to 1.4% from 1.9%. EBIT and EBITDA margins are relatively stable, indicating consistent operational efficiency. However, the decline in net income suggests some pressure on profitability.

Balance Sheet

The debt-to-equity ratio stands at 0.84, reflecting a balanced approach to leverage. The return on equity is low at 5.6%, indicating modest returns to shareholders. The equity ratio of 34.2% suggests a reasonable level of financial stability, but there is room for improvement in reducing debt levels to enhance financial health.

Cash Flow

The company's free cash flow has grown by 3.9%, signifying improved cash management. The operating cash flow to net income ratio is strong at 2.78, highlighting efficient cash generation relative to net income. Free cash flow to net income ratio of 2.28 further supports strong cash flow performance, despite fluctuations in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	564.10B	554.52B	534.23B	545.28B	444.76B	462.92B
Gross Profit	93.74B	91.47B	87.41B	86.32B	72.45B	63.48B
EBITDA	23.08B	26.72B	30.87B	50.87B	30.48B	19.76B
Net Income	5.82B	7.57B	10.36B	25.39B	11.50B	3.65B
Balance Sheet
Total Assets	384.49B	392.23B	372.64B	385.13B	338.94B	321.99B
Cash, Cash Equivalents and Short-Term Investments	15.72B	19.58B	17.81B	31.14B	13.01B	11.64B
Total Debt	92.28B	112.64B	103.92B	119.19B	117.93B	121.30B
Total Liabilities	240.31B	246.67B	234.30B	256.83B	238.62B	232.11B
Stockholders Equity	132.60B	134.07B	127.60B	118.43B	92.90B	83.57B
Cash Flow
Free Cash Flow	0.00	17.28B	16.63B	-8.01B	9.51B	23.12B
Operating Cash Flow	0.00	21.01B	20.89B	304.00M	14.01B	28.38B
Investing Cash Flow	0.00	-11.22B	-2.92B	23.67B	-4.08B	-4.44B
Financing Cash Flow	0.00	-9.34B	-31.68B	-10.09B	-9.83B	-19.90B

Japan Pulp and Paper Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 815.00
• 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:8032, the sentiment is Positive. The current price of 815 is above the 20-day moving average (MA) of 786.20, above the 50-day MA of 749.16, and above the 200-day MA of 655.90, indicating a bullish trend. The MACD of 24.30 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8032.

Japan Pulp and Paper Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8032	75 Outperform	¥76.02B	36.84	―	3.19%	4.06%	-73.92%
3708	71 Outperform	¥58.02B	14.30	―	2.69%	6.26%	-11.38%
9274	64 Neutral	¥50.88B	7.60	―	4.53%	-0.37%	-19.68%
3863	62 Neutral	¥131.82B	7.48	3.57%	1.31%	1.64%	-10.74%
3877	62 Neutral	¥27.04B	37.23	―	3.70%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3880	59 Neutral	¥149.93B	-45.62	-1.54%	1.55%	-2.89%	-15.89%

Japan Pulp and Paper Co. Ltd. Corporate Events

Japan Pulp & Paper Reports Decline in Profits Amid Revenue Growth

Japan Pulp & Paper Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in revenue by 3.1% compared to the previous year. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 47.1%, 54.6%, and 83.9% respectively. The company also announced revisions to its dividend policy and financial forecasts for the fiscal year ending March 31, 2026, indicating a challenging financial outlook.

Japan Pulp & Paper Co. Ltd. Completes Share Buyback and Alters Shareholder Structure

Japan Pulp & Paper Co. Ltd. has completed the acquisition of its own shares and announced the retirement of treasury shares, aiming to enhance capital efficiency and adapt to changes in the business environment. This move results in a change in the company’s major and largest shareholders, with Oji Holdings Corporation reducing its stake, impacting the company’s shareholder structure.

Japan Pulp & Paper Announces Share Buyback and Retirement Plan

Japan Pulp & Paper Co. Ltd. has announced a decision by its Board of Directors to acquire and retire its own shares to improve capital efficiency and adapt to changing business conditions. This move includes acquiring up to 10 million shares through the Tokyo Stock Exchange’s off-auction trading system, with a maximum cost of JPY 7.58 billion. The company will retire 30 million shares, potentially altering its major shareholders, though it will not significantly impact its relationship with Oji Holdings Corporation.

Japan Pulp & Paper Co. Ltd. Announces Dividend Policy Change and Forecast Increase

Japan Pulp & Paper Co. Ltd. announced a change in its dividend policy by introducing the Dividend on Equity (DOE) index to enhance shareholder returns and stabilize its business foundation. The company revised its dividend forecast, increasing the year-end dividend per share to JPY 20, resulting in an expected annual dividend of JPY 34 per share for the fiscal year ending March 31, 2026.

Japan Pulp & Paper Revises Financial Forecasts Amid Market Challenges

Japan Pulp & Paper Co., Ltd. has revised its financial forecasts for the fiscal year ending March 31, 2026, due to deteriorating profitability in its Non-Japan Wholesaling segment and challenges in the Raw Materials & Environment segment. The company cites sluggish demand, increased competition, and higher procurement costs as factors contributing to the expected decline in profits across all levels, impacting its operations and market positioning.

Japan Pulp & Paper Reports Decline in Profits Despite Revenue Growth

Japan Pulp & Paper Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 3.1% increase in revenue to ¥287,131 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 47.1%, 54.6%, and 83.9%, respectively. The company also announced revisions to its dividend forecasts and financial result forecasts for the fiscal year ending March 31, 2026, indicating a challenging financial outlook.