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

• Market Cap: ¥89.49B
• Dividend Yield: 4.16%
• Average Volume (3M): 187.51K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.62
• Revenue Growth: 3.80%
• EPS Growth: -22.03%
• Country: JP
• Employees: 4,157
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 4.82
• Shares Outstanding: 150,215,520
• 10 Day Avg. Volume: 185,610
• 30 Day Avg. Volume: 187,506
• PEG Ratio: -0.17
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 70 Outperform
• Price Target: ¥661.00 ▲(9.98%Upside)

Japan Pulp and Paper Co. Ltd. has a solid financial foundation with strong cash flow and attractive valuation metrics, which are major strengths. However, technical indicators show bearish momentum, and the decline in net income poses a challenge. Despite these issues, the company presents a good value proposition for investors focused on dividend yield.

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

Company Description

Japan Pulp and Paper Company Limited engages in the manufacture, import, export, distribution, wholesale, and sale of papers, paperboards, pulp, and paper-related products worldwide. It offers household paper products and goods, processed papers, container materials, recovered papers, industrial chemicals, building materials, capacitor papers, electronic components and materials, containerboards, laminated papers, industrial waste papers, and packaging materials and ink, as well as paper films used for manufacturing electronic components, as well as corrugated carton boxes and packages, materials for recycling papers. The company also provides digital printers, films and other media, and harvesting equipment; and warehousing and transportation, paper converting, shipping pallet recovery and recycling, cargo handling, and business management services. In addition, it is involved in the sale of computer systems, design and development of software, and Internet retailing operations, as well as offers enterprise AI products, application development tools, public cloud services, package software, and education/consulting services on new technologies, as well as information management solutions. Further, the company engages in the recycling of waste papers, waste plastic, and waste construction materials into recycled fuels. Additionally, it generates renewable energy from wood fiber biomass energy generation plants and solar power generation plants. Japan Pulp and Paper Company Limited was founded in 1845 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Pulp and Paper Co. Ltd. generates revenue primarily through the sale and distribution of paper and pulp products. The company's key revenue streams include the wholesale of paper products to businesses, the sale of recovered paper and recycling services, and the distribution of non-paper materials, such as films and chemicals used in packaging and industrial applications. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its global reach and operational efficiency. Factors contributing to its earnings include its ability to leverage a robust distribution network, its focus on sustainability and recycling, and its adaptability to market demands in the global paper industry.

Japan Pulp and Paper Co. Ltd. Financial Statement Overview

Summary

Japan Pulp and Paper Co. Ltd. demonstrates stable profitability and operational efficiency, with a strong equity position. However, recent revenue declines and cash flow fluctuations present challenges. The company's leverage is under control, but maintaining cash flow stability will be crucial for future growth and financial health.

Income Statement

The gross profit margin for TTM is approximately 16.54%, reflecting healthy profitability. The net profit margin for TTM stands at 1.72%, indicating a moderate level of profitability. Comparing annual data, the revenue growth rate from 2022 to 2023 shows a decline of about 1.98%, which is a concern. However, the company has maintained consistent EBIT and EBITDA margins over time, with TTM figures at 2.79% and 4.53% respectively, indicating stable operational efficiency.

Balance Sheet

The debt-to-equity ratio for TTM is 0.83, indicating manageable leverage. Return on equity (ROE) for TTM is 6.92%, which is moderate. The equity ratio for TTM is 32.42%, showing a healthy proportion of equity financing relative to total assets. Overall, the balance sheet reflects financial stability with a balanced approach to debt.

Cash Flow

Due to unavailable TTM cash flow data, annual analysis shows a significant decline in free cash flow from 2022 to 2023. The lack of operating and free cash flow data for TTM limits complete analysis. Historically, the operating cash flow to net income ratio has shown variability, indicating fluctuating cash generation relative to earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
528.22B	534.23B	545.28B	444.76B	462.92B	534.78B
	Gross Profit
87.39B	87.41B	86.32B	72.45B	63.48B	70.17B
	EBIT
14.73B	17.40B	20.26B	14.06B	8.90B	10.92B
	EBITDA
23.93B	30.87B	29.54B	24.05B	18.61B	20.28B
	Net Income Common Stockholders
9.06B	10.36B	25.39B	11.50B	3.65B	5.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.37B	17.81B	31.14B	13.01B	11.64B	7.63B
	Total Assets
403.98B	372.64B	385.13B	338.94B	321.99B	341.94B
	Total Debt
108.27B	103.92B	119.19B	117.93B	121.30B	136.41B
	Net Debt
84.90B	86.11B	88.05B	104.92B	109.66B	128.79B
	Total Liabilities
261.33B	234.30B	256.83B	238.62B	232.11B	254.69B
	Stockholders Equity
130.99B	127.60B	118.43B	92.90B	83.57B	80.45B
Cash Flow		Free Cash Flow
0.00	16.63B	-8.01B	9.51B	23.12B	14.08B
	Operating Cash Flow
0.00	20.89B	304.00M	14.01B	28.38B	22.49B
	Investing Cash Flow
0.00	-2.92B	23.67B	-4.08B	-4.44B	-13.24B
	Financing Cash Flow
0.00	-31.68B	-10.09B	-9.83B	-19.90B	-9.71B

Japan Pulp and Paper Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 601.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 601 is above the 20-day moving average (MA) of 600.20, above the 50-day MA of 594.64, and below the 200-day MA of 622.53, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, 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	70 Outperform	¥89.49B	9.78		4.16%	3.80%	-22.03%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%
NIJPF		$889.10M	28.93	0.90%	0.88%	―	―
DPR		€833.98M	―	-4.63%	1.79%	―	―
9274	78 Outperform	¥46.53B	6.16		4.68%	3.97%	-21.41%
3877	75 Outperform	¥22.40B	12.27		4.17%	2.95%	-52.19%
3708	72 Outperform	¥42.41B	12.03		3.24%	9.57%	-20.71%

Japan Pulp and Paper Co. Ltd. Corporate Events

Japan Pulp & Paper Co., Ltd. Reports Fiscal Year 2025 Financial Results

Japan Pulp & Paper Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in revenue by 3.8% to ¥554,524 million, despite a decline in operating profit by 13.4% and a significant drop in profit attributable to owners of the parent by 26.9%. The company also conducted a stock split, which impacted earnings per share calculations. The results indicate challenges in maintaining profitability despite revenue growth, highlighting potential operational adjustments or market conditions affecting the company’s financial performance.

Japan Pulp and Paper Co. Ltd. Launches Employee Share Incentive Plan

Japan Pulp and Paper Co. Ltd. announced the disposal of treasury shares to its employees through a performance-based restricted share incentive plan. This initiative is designed to help employees build assets and align their interests with the company’s long-term goals by granting them restricted shares, thereby fostering a commitment to improving corporate value.

Japan Pulp & Paper Reports Financial Results and Future Outlook

Japan Pulp & Paper Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 3.8% increase in revenue to ¥554,524 million. However, the company experienced a decline in operating profit by 13.4% and profit attributable to owners of the parent by 26.9%. The company conducted a stock split in October 2024, impacting earnings per share calculations. Despite these challenges, the company forecasts a 9.5% increase in operating profit for the next fiscal year, reflecting strategic adjustments and potential market recovery.