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

• Market Cap: ¥3.07B
• Dividend Yield: 1.1%
• Average Volume (3M): 480.00
• Price to Earnings (P/E): 238.0
• 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: 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

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: Positive
• Last Price: 4510.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9849, the sentiment is Positive. The current price of 4510 is below the 20-day moving average (MA) of 4538.25, below the 50-day MA of 4535.90, and below the 200-day MA of 4612.90, indicating a neutral trend. The MACD of 11.35 indicates Negative momentum. The RSI at 70.46 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3204	78 Outperform	¥4.22B	5.23	―	2.70%	-3.33%	30.77%
3106	77 Outperform	¥143.62B	12.86	―	2.66%	-1.63%	67.13%
8014	73 Outperform	¥101.02B	10.55	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥315.11B	11.22	―	3.13%	1.50%	9.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7119	58 Neutral	¥14.66B	18.61	―	2.71%	2.13%	135.50%
9849	47 Neutral	¥3.07B	238.03	―	1.10%	1.67%	15.59%