Chuetsu Pulp & Paper Co Ltd
Chuetsu Pulp & Paper maintains a debt-to-equity ratio of 0.65 and a current ratio of 1.05, indicating moderate liquidity risk. The company's price-to-book ratio is 0.45, suggesting that the market values the firm below its book value. Free cash flow is negative at -2.12 billion JPY, reflecting capital expenditure outpacing operating cash flow. Profitability metrics show a return on equity of 3.1% and a return on assets of 1.44%, both below the industry median for Paper Products. The company's operating margin is 1.41% (1.565 billion JPY operating income on 111.009 billion JPY revenue), which is weak compared to peers. Gross margin of 15.4% (17.099 billion JPY gross profit) is also below the industry average. The company's revenue is concentrated in its core Paper and Pulp Manufacturing segment, which accounts for the majority of its operations. The Power Generation and Others segments contribute to diversification but do not offset the cyclical nature of the paper market. No specific geographic concentration is disclosed, but the company is based in Japan, which may expose it to regional demand fluctuations. Outlook for the current fiscal year shows a revenue of 111.009 billion JPY, with no specific growth rate provided. The company's capital expenditure of -6.356 billion JPY indicates ongoing investment in operations. However, the free cash flow remains negative, which may limit its ability to fund growth without external financing. The company faces moderate liquidity risk due to a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. The company's ESG governance score of 36.6 and social score of 11.3 indicate room for improvement in non-financial performance. Recent events include the publication of the latest financial results, which show a net income of 1.761 billion JPY. The company's ESG controversies score of 100.0 suggests potential reputational or regulatory risks that could impact future performance.
Business. Chuetsu Pulp & Paper Co., Ltd. is engaged in the manufacture and sale of paper and pulp products, including newsprint, printing paper, packaging materials, and specialty papers, as well as electricity generation and other diversified activities.
Classification. Chuetsu Pulp & Paper is classified under the Basic Materials economic sector, Applied Resources business sector, and Paper Products industry with a confidence level of 0.92.
- Chuetsu Pulp & Paper has a weak return on equity and return on assets compared to industry peers.
- The company's liquidity position is moderate, with a current ratio of 1.05 and a negative net cash position.
- Free cash flow is negative, indicating that capital expenditures exceed operating cash flow.
- The company's ESG governance and social scores are below average, suggesting potential non-financial risks.
- Revenue is concentrated in the Paper and Pulp Manufacturing segment, which may expose the company to market volatility.
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- Net cash is negative after subtracting total debt.