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

• Market Cap: ¥3.08B
• Dividend Yield: 1.1%
• Average Volume (3M): 480.00
• Price to Earnings (P/E): 484.1
• Beta (1Y): 0.11
• Revenue Growth: 1.67%
• EPS Growth: 15.59%
• Country: JP
• Employees: 157
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -48.62
• 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: 47 Neutral
• Price Target: ¥4,462.00 ▼(-1.06% Downside)

The score is held back mainly by weak and inconsistent cash flow (including negative operating/free cash flow in FY2025) and an extremely high P/E valuation. These are partially offset by a conservative, zero-debt balance sheet, while technical indicators are broadly neutral with slightly negative momentum.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet provides strong financial flexibility, reducing leverage risk and allowing the company to navigate economic fluctuations more effectively.

Equity Stability

Stable equity and steady assets indicate a solid capital base, which supports long-term operational stability and potential for future growth investments.

EPS Growth

Strong EPS growth suggests effective cost management and potential for increased shareholder value, reflecting positively on the company's operational efficiency.

Negative Factors

Cash Flow Concerns

Negative cash flow indicates challenges in converting earnings to cash, which could hinder reinvestment and operational flexibility, impacting long-term sustainability.

Profitability Issues

Thin profitability margins suggest limited pricing power and operational inefficiencies, which could constrain the company's ability to invest in growth and innovation.

Inconsistent Revenue Growth

Volatile revenue growth reflects market uncertainties and potential demand fluctuations, challenging the company's ability to maintain consistent financial performance.

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

Company Description

Kyodo Paper Holdings sells paper and paper products. It is also involved in paper processing, warehousing, automobile transportation, real estate leasing and management, and non-life insurance agency businesses, as well as the sale of chemical products and office equipment, and industrial equipment. The company was founded in 1947 and is headquartered in Tokyo, Japan.

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

Financials are mixed. The balance sheet is a clear strength with zero reported debt and stable equity (low financial risk), but operating profitability is thin and inconsistent, and cash generation is a key concern with operating and free cash flow turning negative again in FY2025.

Income Statement

Revenue has been volatile, with strong growth in FY2023 but a decline in FY2024 and only a modest rebound in FY2025. Profitability is thin across the period: gross margin is steady (~11–13%), but operating and net margins are very low, and FY2025 shows a move toward breakeven operating results (EBIT negative) with only a small net profit. Overall, the company shows some ability to generate earnings, but weak and inconsistent operating leverage keeps the income statement score below average.

Balance Sheet

The balance sheet looks conservative: total debt is reported as zero across all years, resulting in no leverage pressure and strong financial flexibility. Equity is stable and assets are steady, but returns on equity have trended down meaningfully from FY2022 to FY2025, indicating weakening profitability on the capital base. Net-net, low balance sheet risk is a clear strength, partially offset by declining shareholder returns.

Cash Flow

Cash generation is inconsistent, with operating cash flow turning negative in FY2022 and again in FY2025, and free cash flow also negative in those years. While FY2023–FY2024 show positive free cash flow (and strong growth in FY2023–FY2024), the swing back to cash outflow in FY2025 raises durability concerns. Overall, the company’s earnings are not consistently translating into cash, which is the primary drag on this score.

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: Neutral
• Last Price: 4510.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 4510 is below the 20-day moving average (MA) of 4600.50, below the 50-day MA of 4556.90, and below the 200-day MA of 4607.28, indicating a neutral trend. The MACD of 17.86 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 57.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3106	77 Outperform	¥156.92B	13.41	―	2.66%	-1.63%	67.13%
3204	77 Outperform	¥4.54B	5.47	―	2.70%	-3.33%	30.77%
8014	73 Outperform	¥104.71B	10.22	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥343.93B	12.08	―	3.13%	1.50%	9.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7119	58 Neutral	¥14.76B	18.62	―	2.71%	2.13%	135.50%
9849	47 Neutral	¥3.08B	484.08	―	1.10%	1.67%	15.59%