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

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JP:8032

Japan Pulp and Paper Co. Ltd.

(8032)

Rating:77Outperform
Price Target:
¥691.00
▼(-4.03% Downside)
The stock exhibits a stable financial performance with strong cash flow and a solid balance sheet. Technical indicators point to a positive momentum, supported by a potentially attractive valuation with a low P/E ratio and high dividend yield. The absence of notable recent corporate events or earnings call data means these factors did not influence the score.

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 Co. Ltd. (8032) is a global trading company based in Japan, specializing in the distribution and sale of paper, paperboard, and related products. The company operates across various sectors, including the pulp and paper industry, recycling, and the distribution of packaging materials and machinery. With a wide-ranging network that spans multiple countries, Japan Pulp and Paper Co. Ltd. is dedicated to innovation and sustainability in its offerings.
How the Company Makes MoneyJapan Pulp and Paper Co. Ltd. generates revenue primarily through the sale and distribution of paper and paper-related products. It operates a diversified business model that includes the import and export of paper and pulp, the recycling of paper products, and the distribution of packaging materials and machinery. The company's earnings are bolstered by a robust global distribution network and strategic partnerships with major manufacturers and suppliers in the industry. Additionally, Japan Pulp and Paper Co. Ltd. is involved in the recycling sector, which not only contributes to its revenue but also aligns with global sustainability trends, enhancing its market position and customer base.

Japan Pulp and Paper Co. Ltd. Financial Statement Overview

Summary
Japan Pulp and Paper Co. Ltd. demonstrates a stable financial position with steady revenue growth and strong cash flow generation. Operational margins are consistent, but the decline in net income poses a profitability challenge. The balance sheet is solid, with opportunities for improving financial leverage by reducing debt.
Income Statement
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue554.52B554.52B534.23B545.28B444.76B462.92B
Gross Profit91.47B91.47B87.41B86.32B72.45B63.48B
EBITDA26.72B26.72B30.87B50.87B30.48B19.76B
Net Income7.57B7.57B10.36B25.39B11.50B3.65B
Balance Sheet
Total Assets392.23B392.23B372.64B385.13B338.94B321.99B
Cash, Cash Equivalents and Short-Term Investments19.58B19.58B17.81B31.14B13.01B11.64B
Total Debt112.64B112.64B103.92B119.19B117.93B121.30B
Total Liabilities246.67B246.67B234.30B256.83B238.62B232.11B
Stockholders Equity134.07B134.07B127.60B118.43B92.90B83.57B
Cash Flow
Free Cash Flow0.0017.28B16.63B-8.01B9.51B23.12B
Operating Cash Flow0.0021.01B20.89B304.00M14.01B28.38B
Investing Cash Flow0.00-11.22B-2.92B23.67B-4.08B-4.44B
Financing Cash Flow0.00-9.34B-31.68B-10.09B-9.83B-19.90B

Japan Pulp and Paper Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price720.00
Price Trends
50DMA
659.62
Positive
100DMA
630.63
Positive
200DMA
625.41
Positive
Market Momentum
MACD
15.22
Negative
RSI
76.02
Negative
STOCH
91.11
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 720 is above the 20-day moving average (MA) of 689.30, above the 50-day MA of 659.62, and above the 200-day MA of 625.41, indicating a bullish trend. The MACD of 15.22 indicates Negative momentum. The RSI at 76.02 is Negative, neither overbought nor oversold. The STOCH value of 91.11 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥107.21B15.24
3.47%5.74%-42.24%
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
$961.70M19.561.56%0.68%
€849.54M-4.33%
78
Outperform
¥54.34B7.44
3.42%3.21%-16.62%
75
Outperform
¥23.59B19.75
3.97%3.05%-63.52%
72
Outperform
¥49.12B14.03
2.79%8.71%-24.08%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8032
Japan Pulp and Paper Co. Ltd.
720.00
100.97
16.31%
NIJPF
Nippon Paper
8.33
2.01
31.80%
DE:DPR
Daio Paper Corporation
4.92
-0.24
-4.65%
JP:3708
Tokushu Tokai Paper Co., Ltd.
4,305.00
755.56
21.29%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,765.00
516.90
41.41%
JP:9274
KPP GROUP HOLDINGS CO.,LTD.
849.00
209.46
32.75%

Japan Pulp and Paper Co. Ltd. Corporate Events

Japan Pulp & Paper Co. Reports Revenue Growth but Faces Profit Declines
Aug 7, 2025

Japan Pulp & Paper Co., Ltd. reported a 7.1% increase in revenue for the three months ended June 30, 2025, compared to the same period in 2024. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 43.8%, 45.2%, and 60.0% respectively. The company’s equity ratio slightly improved to 34.5% as of June 30, 2025. Despite the revenue growth, the financial results indicate challenges in profitability, which may impact the company’s market positioning and stakeholder confidence.

Japan Pulp and Paper Completes Treasury Share Disposal for Employee Incentive Plan
Jul 31, 2025

Japan Pulp and Paper Co. Ltd. has completed the disposal of treasury shares for an Employee Shareholding Association Performance-based Restricted Share Incentive Plan. This move, resolved in May 2025, involved a slight adjustment in the number of shares disposed due to finalized membership promotions and consent confirmations, impacting the total disposal amount.

Japan Pulp and Paper Co. Ltd. Updates on German Acquisitions
Jun 27, 2025

Japan Pulp and Paper Co., Ltd. announced changes to its acquisition details of three companies in Germany, including Inapa Deutschland GmbH. The company disclosed the acquisition price of EUR28.1 million and highlighted the expected future earnings from these acquisitions, indicating a strategic move to strengthen its market position in Europe.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 25, 2025