Awa Paper & Technological Co., Inc. (3896) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tomoegawa Corp.

Nippon Kodoshi Corp.

Awa Paper & Technological Co., Inc.

Mitsubishi Paper Mills Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Okayama Paper Industries Co., Ltd.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Nichiban Co., Ltd.

Nippon Paper Industries Co., Ltd.

Hokuetsu Corp.

Why is Awa Paper & Technological Co., Inc. ?

Poor Management Efficiency with a low ROCE of 2.65%

The company has been able to generate a Return on Capital Employed (avg) of 2.65% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.84% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 2.65% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 6.84% over the last 5 years

The company has declared positive results in Jun'2026 after 4 consecutive negative quarters

ROCE(HY) Highest at 19.6%
INVENTORY TURNOVER RATIO(HY) Highest at 4.04 times
NET SALES(Q) Highest at JPY 5,187.22 MM

With ROCE of 0.79%, it has a very attractive valuation with a 0.93 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.50%, its profits have fallen by -2117.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Awa Paper & Technological Co., Inc. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Awa Paper & Technological Co., Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Awa Paper & Technological Co., Inc.

-100.0%

-0.46

57.38%

Japan Nikkei 225

56.3%

1.91

29.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.84%

EBIT Growth (5y)

72.24%

EBIT to Interest (avg)

6.14

Debt to EBITDA (avg)

6.40

Net Debt to Equity (avg)

2.15

Sales to Capital Employed (avg)

1.05

Tax Ratio

22.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.71%

ROE (avg)

5.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.76

EV to EBIT

117.50

EV to EBITDA

12.80

EV to Capital Employed

0.93

EV to Sales

0.91

PEG Ratio

Dividend Yield

ROCE (Latest)

0.79%

ROE (Latest)

-1.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

24What is working for the Company

ROCE(HY)

Highest at 19.6%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.04 times

NET SALES(Q)

Highest at JPY 5,187.22 MM

PRE-TAX PROFIT(Q)

At JPY 185.37 MM has Grown at 180.36%

NET PROFIT(Q)

At JPY 99.86 MM has Grown at 136.49%

RAW MATERIAL COST(Y)

Fallen by -69.21% (YoY

CASH AND EQV(HY)

Highest at JPY 3,540.71 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 81.73 MM has Grown at 20.15%

Here's what is working for Awa Paper & Technological Co., Inc.

Net Sales

Highest at JPY 5,187.22 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 185.37 MM has Grown at 180.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 99.86 MM has Grown at 136.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.04 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At JPY 5,187.22 MM has Grown at 20.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 3,540.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -69.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Awa Paper & Technological Co., Inc.

Interest

At JPY 81.73 MM has Grown at 20.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)