Kyodo Paper Holdings Co., Ltd. (9849) AI Stock Analysis

• Market Cap: ¥3.06B
• Dividend Yield: 1.09%
• Average Volume (3M): 480.00
• Price to Earnings (P/E): 62.0
• Beta (1Y): 0.12
• Revenue Growth: 1.67%
• EPS Growth: 15.59%
• Country: JP
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -23.27
• Shares Outstanding: 735,344
• 10 Day Avg. Volume: 390
• 30 Day Avg. Volume: 480
• PEG Ratio: -2.19
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -11.36
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ―

Kyodo Paper Holdings Co., Ltd. exhibits strong financial health with a debt-free balance sheet and robust cash flow generation. However, the stock faces challenges due to negative valuation metrics and bearish technical indicators. The decline in revenue and return on equity further limits the stock's attractiveness. Despite its strong fundamentals, the stock's current valuation and technical outlook suggest it may not be an ideal investment at this time.

Positive Factors

Balance Sheet Health

A debt-free balance sheet provides Kyodo Paper with significant financial flexibility, allowing it to invest in growth opportunities without the burden of interest payments, enhancing long-term stability.

Cash Flow Generation

Strong cash flow generation indicates efficient operations and provides the company with the ability to reinvest in its business, pay dividends, or weather economic downturns, supporting sustainable growth.

Operational Efficiency

Maintaining positive EBIT and EBITDA margins reflects Kyodo Paper's operational efficiency, which is crucial for sustaining profitability and competitiveness in the paper industry.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive pressures, which could impact the company's ability to grow and maintain its market position over time.

Return on Equity

The decline in return on equity indicates reduced profitability from shareholders' investments, which may signal inefficiencies or competitive challenges affecting long-term shareholder value.

Profit Margins

Low net profit margins suggest limited pricing power or high costs, which could constrain the company's ability to generate profits and invest in future growth initiatives.

Kyodo Paper Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Kyodo Paper Holdings Co., Ltd. (9849) is a Japanese company engaged in the manufacturing and distribution of paper products. The company operates primarily within the paper and pulp industry, offering a wide range of products such as printing paper, packaging materials, and other specialized paper products. Kyodo Paper Holdings is known for its commitment to sustainability and innovation in paper production, catering to both domestic and international markets.

How the Company Makes Money

Kyodo Paper Holdings Co., Ltd. generates revenue through the sale of its paper products, which include printing paper, packaging materials, and other specialized paper items. The company's revenue model is based on producing and distributing these products to various industries, including publishing, packaging, and other commercial sectors. Significant partnerships with suppliers and distributors help the company maintain its competitive edge in the market. Additionally, the company's focus on sustainable practices and efficient production processes can contribute to cost savings and enhance profitability.

Kyodo Paper Holdings Co., Ltd. Financial Statement Overview

Summary

Kyodo Paper Holdings Co., Ltd. demonstrates a sound financial position with consistent operational performance. The company benefits from strong cash flow generation and a debt-free balance sheet, which provides financial flexibility. However, the decline in revenue and return on equity suggests areas for potential improvement. Overall, the company is well-positioned within the conglomerates industry, with strong fundamentals and growth potential.

Income Statement

Kyodo Paper Holdings Co., Ltd. shows a stable financial performance with a TTM gross profit margin of 13.03% and a net profit margin of 0.35%. However, revenue has decreased slightly by 1.75% from the previous year. Despite this, the company maintains a positive EBIT margin of 0.56% and EBITDA margin of 1.26%, indicating operational efficiency.

Balance Sheet

The company has a strong balance sheet with zero total debt, resulting in a debt-to-equity ratio of 0. The equity ratio is a robust 39.91%, reflecting a strong capital structure and financial stability. The return on equity has decreased to 1.48%, indicating a need for improved profitability.

Cash Flow

There is a significant improvement in cash flow with a free cash flow growth rate of 97.64% over the last year. The operating cash flow to net income ratio stands at 5.67, showing strong cash generation relative to net income. The free cash flow to net income ratio of 5.06 highlights efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.01B	16.89B	16.73B	17.02B	14.09B	13.22B
Gross Profit	2.03B	1.93B	2.18B	2.24B	1.74B	1.66B
EBITDA	212.27M	183.73M	211.00M	267.99M	288.80M	113.68M
Net Income	51.18M	28.02M	58.81M	101.23M	171.73M	39.37M
Balance Sheet
Total Assets	9.54B	9.52B	9.98B	10.20B	9.69B	8.45B
Cash, Cash Equivalents and Short-Term Investments	939.41M	807.83M	1.06B	869.38M	781.81M	1.54B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	5.66B	5.62B	6.00B	6.37B	6.00B	4.95B
Stockholders Equity	3.88B	3.90B	3.98B	3.83B	3.69B	3.50B
Cash Flow
Free Cash Flow	0.00	-283.14M	297.80M	150.68M	-429.29M	28.38M
Operating Cash Flow	0.00	-257.76M	333.31M	163.54M	-325.24M	98.29M
Investing Cash Flow	0.00	43.84M	-100.29M	-36.28M	-256.72M	735.92M
Financing Cash Flow	0.00	-41.74M	-38.90M	-39.69M	-172.63M	-33.63M

Kyodo Paper Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4530.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9849, the sentiment is Negative. The current price of 4530 is below the 20-day moving average (MA) of 4537.75, below the 50-day MA of 4589.70, and below the 200-day MA of 4650.38, indicating a bearish trend. The MACD of -17.96 indicates Negative momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9849.

Kyodo Paper Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8020	79 Outperform	¥259.73B	9.10	―	3.36%	1.50%	9.82%
3204	78 Outperform	¥4.50B	5.61	―	2.67%	-3.33%	30.77%
8014	73 Outperform	¥95.73B	9.85	―	3.83%	-2.33%	-16.42%
3106	72 Outperform	¥120.70B	10.66	―	3.30%	-1.63%	67.13%
7119	70 Outperform	¥14.76B	23.72	―	2.58%	2.13%	135.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9849	54 Neutral	¥3.06B	62.02	―	1.09%	1.67%	15.59%