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

• Market Cap: ¥107.50B
• Dividend Yield: 3.67%
• Average Volume (3M): 131.00K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.56
• Revenue Growth: 5.74%
• EPS Growth: -42.24%
• Country: JP
• Employees: 4,157
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 9.46
• Shares Outstanding: 150,215,520
• 10 Day Avg. Volume: 128,010
• 30 Day Avg. Volume: 130,996
• 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: ¥691.00
• Price Target Upside: -4.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥691.00 ▼(-4.29% 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. 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 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 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

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: 722.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 722 is above the 20-day moving average (MA) of 715.32, above the 50-day MA of 694.84, and above the 200-day MA of 623.62, indicating a bullish trend. The MACD of 7.57 indicates Positive momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 66.92 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	77 Outperform	¥107.50B	15.29	―	3.67%	5.74%	-42.24%
3708	72 Outperform	¥56.48B	14.82	―	2.78%	8.71%	-24.08%
9274	69 Neutral	¥49.22B	6.74	―	4.68%	3.21%	-16.62%
3877	64 Neutral	¥22.19B	18.58	―	4.51%	3.05%	-63.52%
3863	62 Neutral	$132.52B	17.58	1.56%	1.31%	1.81%	-72.04%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3880	52 Neutral	€144.29B	―	-4.33%	1.61%	-2.23%	-8527.56%

Japan Pulp and Paper Co. Ltd. Corporate Events

Japan Pulp & Paper Co. Reports Revenue Growth but Faces Profit Declines

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

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

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

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.