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Japan Pulp and Paper Co. Ltd. (JP:8032)
:8032
Japanese Market

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

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Japan Pulp and Paper Co. Ltd.

(8032)

Rating:70Outperform
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. (8032) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionJapan 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 MoneyJapan 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
72
Positive
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
68
Positive
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
55
Neutral
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
528.22B534.23B545.28B444.76B462.92B534.78B
Gross Profit
87.39B87.41B86.32B72.45B63.48B70.17B
EBIT
14.73B17.40B20.26B14.06B8.90B10.92B
EBITDA
23.93B30.87B29.54B24.05B18.61B20.28B
Net Income Common Stockholders
9.06B10.36B25.39B11.50B3.65B5.05B
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.37B17.81B31.14B13.01B11.64B7.63B
Total Assets
403.98B372.64B385.13B338.94B321.99B341.94B
Total Debt
108.27B103.92B119.19B117.93B121.30B136.41B
Net Debt
84.90B86.11B88.05B104.92B109.66B128.79B
Total Liabilities
261.33B234.30B256.83B238.62B232.11B254.69B
Stockholders Equity
130.99B127.60B118.43B92.90B83.57B80.45B
Cash FlowFree Cash Flow
0.0016.63B-8.01B9.51B23.12B14.08B
Operating Cash Flow
0.0020.89B304.00M14.01B28.38B22.49B
Investing Cash Flow
0.00-2.92B23.67B-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 Price601.00
Price Trends
50DMA
594.64
Positive
100DMA
601.28
Positive
200DMA
622.53
Negative
Market Momentum
MACD
-0.05
Negative
RSI
54.93
Neutral
STOCH
72.22
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥89.49B9.78
4.16%3.80%-22.03%
51
Neutral
$2.03B-1.13-21.36%3.65%2.87%-30.54%
$889.10M28.930.90%0.88%
DEDPR
€833.98M-4.63%1.79%
78
Outperform
¥46.53B6.16
4.68%3.97%-21.41%
75
Outperform
¥22.40B12.27
4.17%2.95%-52.19%
72
Outperform
¥42.41B12.03
3.24%9.57%-20.71%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8032
Japan Pulp and Paper Co. Ltd.
604.00
-2.51
-0.41%
NIJPF
Nippon Paper
7.36
1.06
16.83%
DE:DPR
Daio Paper Corporation
4.84
0.00
0.00%
JP:3708
Tokushu Tokai Paper Co., Ltd.
3,720.00
209.30
5.96%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,675.00
176.90
11.81%
JP:9274
KPP GROUP HOLDINGS CO.,LTD.
732.00
-50.30
-6.43%

Japan Pulp and Paper Co. Ltd. Corporate Events

Japan Pulp & Paper Co., Ltd. Reports Fiscal Year 2025 Financial Results
Jun 6, 2025

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
May 28, 2025

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
May 14, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.