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

• Market Cap: ¥4.14B
• Dividend Yield: 2.8%
• Average Volume (3M): 2.29K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.21
• Revenue Growth: -0.57%
• EPS Growth: -14.16%
• Country: JP
• Employees: 195
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): 3.78
• Shares Outstanding: 10,116,917
• 10 Day Avg. Volume: 1,940
• 30 Day Avg. Volume: 2,293
• PEG Ratio: <0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.39
• 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

• Rating: 57 Neutral
• Price Target: ¥443.00 ▲(3.26%Upside)

Heiwa Paper Co., Ltd. achieves a moderate overall stock score primarily due to its stable financial performance, characterized by a strong balance sheet but pressured by low profitability and cash flow issues. Technical analysis indicates a neutral stance with no significant momentum, while valuation concerns due to a high P/E ratio further impact the score.

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

Company Description

Heiwa Paper Co., Ltd. (9929) is a Japan-based company primarily engaged in the manufacturing and sale of paper products. The company operates through various segments, focusing on the production of printing paper, industrial paper, and specialty paper. Heiwa Paper is known for its commitment to quality and sustainability, catering to diverse industries including publishing, packaging, and industrial sectors.

How the Company Makes Money

Heiwa Paper Co., Ltd. generates revenue through the sale of its paper products across multiple segments. The company earns income by supplying printing paper to publishers and commercial printers, industrial paper for packaging and other industrial applications, and specialty paper tailored to specific customer needs. By maintaining strong relationships with distributors and ensuring high-quality production standards, Heiwa Paper secures a steady demand for its products. Additionally, the company may engage in strategic partnerships and collaborations to enhance its market reach and operational efficiency, further contributing to its earnings.

Heiwa Paper Co., Ltd. Financial Statement Overview

Summary

Heiwa Paper Co., Ltd. demonstrates stability in operations with consistent revenue and gross profit margins. However, profitability is hindered by low net income and free cash flow challenges. The balance sheet is strong, supporting future growth with a solid equity base. The company should focus on improving net income and free cash flow to enhance overall 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
16.17B	16.03B	16.12B	16.07B	15.62B	14.61B
	Gross Profit
3.25B	3.27B	3.29B	3.23B	2.92B	2.63B
	EBIT
126.49M	142.68M	158.05M	138.33M	161.69M	8.74M
	EBITDA
283.37M	380.23M	355.80M	1.40B	255.83M	89.01M
	Net Income Common Stockholders
114.96M	117.03M	136.33M	874.80M	87.26M	-34.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.44B	2.67B	2.84B	3.07B	3.32B	3.27B
	Total Assets
18.92B	17.97B	18.83B	17.57B	15.77B	15.92B
	Total Debt
2.24B	2.45B	2.46B	2.41B	2.15B	2.17B
	Net Debt
-209.00M	-228.77M	-376.06M	-660.04M	-1.16B	-1.05B
	Total Liabilities
8.93B	8.05B	8.74B	8.16B	7.24B	7.20B
	Stockholders Equity
9.99B	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: Neutral
• Last Price: 429.00
• 50DMA: Positive
• 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:9929, the sentiment is Neutral. The current price of 429 is above the 20-day moving average (MA) of 427.25, above the 50-day MA of 427.70, and below the 200-day MA of 436.72, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3892	83 Outperform	¥7.17B	8.47		2.09%	1.53%	-36.83%
3945	79 Outperform	¥3.73B	3.70		0.61%	2.76%	16.03%
3955	78 Outperform	¥10.21B	10.44		2.95%	3.97%	4.71%
3895	68 Neutral	¥3.49B	5.13		0.45%	1.50%	-0.74%
3168	63 Neutral	¥7.60B	22.09		3.76%	14.31%	57.25%
9929	57 Neutral	¥4.14B	34.68		2.80%	-0.57%	-14.16%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%