Nippon Paper Industries Co., Ltd. Fundamental Analysis (JPX: 3863.T)
Nippon Paper Industries Co., Ltd. Fundamental Analysis (JPX: 3863.T)
Nippon Paper Industries Co., Ltd. (JPX: 3863.T) shows weak financial fundamentals with a PE ratio of 16.41, profit margin of 0.79%, and ROE of 1.94%. The company generates $1214.5B in annual revenue with weak year-over-year growth of 1.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 3863.T's fundamental strength across five key dimensions:
Efficiency Score
Weak3863.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent3863.T trades at attractive valuation levels.
Growth Score
Weak3863.T faces weak or negative growth trends.
Financial Health Score
Moderate3863.T shows balanced financial health with some risks.
Profitability Score
Weak3863.T struggles to sustain strong margins.
Key Financial Metrics
Is 3863.T Expensive or Cheap?
P/E Ratio
3863.T trades at 16.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 3863.T's PEG of 0.60 indicates potential undervaluation.
Price to Book
The market values Nippon Paper Industries Co., Ltd. at 0.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.09 times EBITDA. This is generally considered low.
How Well Does 3863.T Make Money?
Net Profit Margin
For every $100 in sales, Nippon Paper Industries Co., Ltd. keeps $0.79 as profit after all expenses.
Operating Margin
Core operations generate 1.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.94 in profit for every $100 of shareholder equity.
ROA
Nippon Paper Industries Co., Ltd. generates $0.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nippon Paper Industries Co., Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nippon Paper Industries Co., Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
3863.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 3863.T Stacks Against Its Sector Peers
| Metric | 3863.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.41 | 27.39 | Better (Cheaper) |
| ROE | 1.94% | 1206.00% | Weak |
| Net Margin | 0.79% | 372.00% | Weak |
| Debt/Equity | 1.63 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.39 | 3.14 | Neutral |
| ROA | 0.55% | 2761.00% | Weak |
3863.T outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nippon Paper Industries Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.50%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-68.00%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
8.81%
Industry Style: Cyclical, Commodity, Value
Growing