Chuetsu Pulp & Paper Co Ltd

Chuetsu Pulp & Paper Co Ltd maintains a liquidity position that is relatively modest, with a price-to-book ratio of 0.44 and a current ratio of 1.15. The company's cash and equivalents amount to ¥10.67 billion, which is insufficient to cover its long-term debt of ¥41.69 billion, resulting in a negative net cash position. This liquidity profile suggests the company may need to rely on operating cash flow or external financing to meet long-term obligations.

Profitability metrics for the company are weak compared to industry norms. The return on equity (ROE) is 0.94%, and the return on assets (ROA) is 0.41%, both of which are below the typical thresholds for the Paper Products industry. The company's operating income of ¥380 million and net income of ¥524 million indicate limited profitability, with a gross profit margin of 16.8%. These figures suggest the company is struggling to convert revenue into profit effectively.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification increases exposure to regional economic fluctuations and supply chain disruptions. The absence of segment-specific revenue breakdowns limits the ability to assess the performance of different product lines or geographic regions.

Growth prospects for the company appear constrained. The most recent actual revenue was ¥111.01 billion, significantly lower than the ¥27.93 billion reported in the latest financial snapshot. This discrepancy may reflect a change in reporting periods or a significant decline in revenue. The company's capital expenditures of ¥8.04 billion suggest ongoing investment in operations, but the high debt-to-equity ratio of 0.75 indicates that a substantial portion of these investments is financed through debt.

The company faces moderate liquidity risk and low dilution risk. The negative net cash position and reliance on operating cash flow to service debt highlight the need for careful financial management. No significant dilution events are currently indicated, and the number of shares outstanding remains unchanged between basic and diluted measures.

Recent financial filings and transcripts do not provide additional insights into the company's strategic direction or operational performance. The absence of detailed disclosures on recent events or management commentary limits the ability to assess the company's response to market conditions.

Revenue grew at a 7.9% CAGR over four years, reaching 111 billion JPY in fiscal 2025.

Long-term debt decreased steadily from 53.4 billion JPY in 2021 to 37.2 billion JPY in 2025.

Cash conversion ratio of 25.89% ranks as best-in-class compared to the paper products cohort median.

Gross profit expanded to 17.1 billion JPY in fiscal 2025, up from 13.8 billion JPY in 2021.

Dilution risk is assessed as low, suggesting stable equity structure for existing shareholders.

Return on equity of 0.94% remains significantly below the 2.21% median for the paper products cohort.

The company faces high credit risk and medium liquidity risk according to current risk assessments.

Revenue ¥28.02B, +1,6% YoY; Operating income −181,4% YoY.

• ▍Revenue ¥28.02B, +1,6% YoY
• ▍Operating income −181,4% YoY
• ▍Net income −74,4% YoY
• ▍Net margin 0.5%

Revenue ¥26.32B, −9,8% YoY; Operating income −48,2% YoY.

• ▍Revenue ¥26.32B, −9,8% YoY
• ▍Operating income −48,2% YoY
• ▍Net income −31,9% YoY
• ▍Net margin 4.0%

Revenue ¥26.73B, +1,2% YoY; Operating income −159,3% YoY.

• ▍Revenue ¥26.73B, +1,2% YoY
• ▍Operating income −159,3% YoY
• ▍Net income −111,7% YoY
• ▍Net margin -0.2%

Revenue ¥27.85B, −0,3% YoY; Operating income −505,5% YoY.

• ▍Revenue ¥27.85B, −0,3% YoY
• ▍Operating income −505,5% YoY
• ▍Net income −253,4% YoY
• ▍Net margin -2.9%

Revenue ¥27.58B; Operating income ¥161.0M.

• ▍Revenue ¥27.58B
• ▍Operating income ¥161.0M
• ▍Net margin 1.9%

Revenue ¥29.17B; Operating income ¥2.68B.

• ▍Revenue ¥29.17B
• ▍Operating income ¥2.68B
• ▍Net margin 5.2%

Revenue ¥26.40B; Operating income ¥268.0M.

• ▍Revenue ¥26.40B
• ▍Operating income ¥268.0M
• ▍Net margin 2.0%

Revenue ¥27.93B; Operating income ¥380.0M.

• ▍Revenue ¥27.93B
• ▍Operating income ¥380.0M
• ▍Net margin 1.9%

Revenue ¥111.01B, +3,0% YoY; Operating income −64,1% YoY.

• ▍Revenue ¥111.01B, +3,0% YoY
• ▍Operating income −64,1% YoY
• ▍Net income −52,4% YoY
• ▍Free cash flow −126,5% YoY
• ▍Net margin 1.6%

Revenue ¥107.83B, +2,0% YoY; Operating income +90,0% YoY.

• ▍Revenue ¥107.83B, +2,0% YoY
• ▍Operating income +90,0% YoY
• ▍Net income +21,4% YoY
• ▍Free cash flow −65,9% YoY
• ▍Net margin 3.4%

Revenue ¥105.67B, +17,3% YoY; Operating income +135,4% YoY.

• ▍Revenue ¥105.67B, +17,3% YoY
• ▍Operating income +135,4% YoY
• ▍Net income +140,5% YoY
• ▍Free cash flow −31,8% YoY
• ▍Net margin 2.9%

Revenue ¥90.10B, +10,0% YoY; Operating income +181,6% YoY.

• ▍Revenue ¥90.10B, +10,0% YoY
• ▍Operating income +181,6% YoY
• ▍Net income +220,4% YoY
• ▍Free cash flow +471,4% YoY
• ▍Net margin 1.4%