Heiwa Paper Co., Ltd. (9929) AI Stock Analysis

• Market Cap: ¥4.32B
• Dividend Yield: 2.68%
• Average Volume (3M): 1.99K
• Price to Earnings (P/E): 43.3
• Beta (1Y): 0.22
• Revenue Growth: -0.62%
• EPS Growth: -28.02%
• Country: JP
• Employees: 195
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -1.03
• Shares Outstanding: 10,116,917
• 10 Day Avg. Volume: 1,700
• 30 Day Avg. Volume: 1,993
• PEG Ratio: -2.54
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -15.90
• 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: ¥457.00
• Price Target Upside: 2.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥457.00 ▲(2.70% Upside)

Heiwa Paper Co., Ltd. receives a moderate score due to its stable financial performance and neutral technical indicators. The strong balance sheet supports future growth, but profitability and cash flow challenges need addressing. The stock's high P/E ratio suggests overvaluation, though the dividend yield offers some compensation. The absence of earnings call data and notable corporate events limits additional insights.

Heiwa Paper Co., Ltd. Business Overview & Revenue Model

Company Description

Heiwa Paper Co.,Ltd. engages in paper trading activities in Japan and internationally. The company imports, develops, sells, and exports specialty papers, high-grade papers, industrial papers, and other paper materials. It also provides fancy papers, fine boards, printing papers, and basic papers; and engages in the development and commercialization of paper products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Heiwa Paper Co., Ltd. generates revenue through the production and sale of its paper products. The company supplies its products to a broad range of industries, including publishing houses, packaging companies, and other industrial sectors that require specialized paper solutions. By maintaining strong relationships with distributors and end-users, Heiwa Paper Co., Ltd. ensures a steady demand for its products. Additionally, the company may engage in strategic partnerships and collaborations to enhance its market reach and product offerings, further contributing to its revenue streams. Key factors influencing its earnings include raw material costs, production efficiency, and market demand for paper products.

Heiwa Paper Co., Ltd. Financial Statement Overview

Summary

Heiwa Paper Co., Ltd. shows operational stability with consistent revenue and gross profit margins. However, profitability is constrained by low net income and free cash flow challenges. The balance sheet is strong, supporting future growth with a solid equity base. Improvements in net income and free cash flow are needed to enhance financial health.

Income Statement

The income statement reveals modest revenue stability with slight fluctuations over the years. The gross profit margin has been consistent, indicating a steady control over cost of goods sold. However, the net profit margin has been under pressure, largely due to volatile net income figures, which is a concern for profitability. EBIT and EBITDA margins have shown resilience, suggesting some operational efficiency.

Balance Sheet

The balance sheet is robust with a healthy equity base. The debt-to-equity ratio is moderate, reflecting balanced leverage usage. The equity ratio indicates strong asset financing through equity. Return on equity is low due to fluctuating net income, which is a point of concern. Overall, the financial position appears stable with manageable debt levels.

Cash Flow

The cash flow statement indicates challenges in generating free cash flow, as evidenced by negative figures in recent years. Operating cash flow has been relatively stable, but the conversion to free cash flow is weak, impacting financial flexibility. The operating cash flow to net income ratio suggests that operating activities are generating reasonable cash relative to earnings, but improvements are needed in capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.99B	16.03B	16.12B	16.07B	15.62B	14.61B
Gross Profit	3.28B	3.27B	3.29B	3.23B	2.92B	2.63B
EBITDA	302.41M	380.23M	355.80M	1.40B	255.83M	89.01M
Net Income	97.90M	117.03M	136.33M	874.80M	87.26M	-34.78M
Balance Sheet
Total Assets	17.77B	17.97B	18.83B	17.57B	15.77B	15.92B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.67B	2.84B	3.07B	3.32B	3.27B
Total Debt	2.35B	2.45B	2.46B	2.41B	2.15B	2.17B
Total Liabilities	7.89B	8.05B	8.74B	8.16B	7.24B	7.20B
Stockholders Equity	9.87B	9.92B	10.10B	9.41B	8.53B	8.72B
Cash Flow
Free Cash Flow	0.00	-264.78M	77.62M	-1.14B	226.19M	260.10M
Operating Cash Flow	0.00	260.77M	122.83M	121.11M	234.00M	314.25M
Investing Cash Flow	0.00	-554.34M	-13.21M	-408.28M	-13.88M	36.61M
Financing Cash Flow	0.00	-171.47M	-344.65M	43.13M	-123.12M	-85.71M

Heiwa Paper Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 445.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9929, the sentiment is Positive. The current price of 445 is above the 20-day moving average (MA) of 442.13, above the 50-day MA of 435.40, and above the 200-day MA of 431.91, indicating a bullish trend. The MACD of 2.66 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9929.

Heiwa Paper Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3945	81 Outperform	¥4.29B	4.27	20.70%	3.20%	1.64%	17.47%
3892	70 Outperform	¥7.88B	8.99	6.17%	2.53%	0.09%	-31.12%
3955	68 Neutral	¥9.66B	8.92	4.65%	3.11%	6.70%	12.10%
3895	66 Neutral	¥3.41B	6.50	9.26%	4.14%	-0.52%	-30.18%
9929	59 Neutral	¥4.32B	43.28	―	2.68%	-0.62%	-28.02%
3168	52 Neutral	¥7.64B	-16.56	5.62%	3.72%	6.77%	-163.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%