Executive Summary
Nippon Paper Industries Co., Ltd. engages in paper manufacturing and related businesses in Japan and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet with questionable track record.
Similar Companies
Share Price & News
How has Nippon Paper Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3863 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.3%
3863
10.6%
JP Forestry
10.7%
JP Market
1 Year Return
-34.6%
3863
-16.4%
JP Forestry
-10.7%
JP Market
Return vs Industry: 3863 underperformed the JP Forestry industry which returned -14.6% over the past year.
Return vs Market: 3863 underperformed the JP Market which returned -8.2% over the past year.
Shareholder returns
| 3863 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 10.6% | 10.7% |
| 30 Day | -1.6% | 8.1% | -5.2% |
| 90 Day | -16.7% | -6.3% | -16.6% |
| 1 Year | -33.0%-34.6% | -14.5%-16.4% | -8.4%-10.7% |
| 3 Year | -18.5%-23.7% | -0.6%-5.7% | 2.3%-4.8% |
| 5 Year | -6.5%-17.6% | 16.1%5.7% | 6.4%-5.0% |
Price Volatility Vs. Market
How volatile is Nippon Paper Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Nippon Paper Industries undervalued compared to its fair value and its price relative to the market?
12.63x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 3863 (¥1583) is trading above our estimate of fair value (¥1172.6)
Significantly Below Fair Value: 3863 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 3863 is poor value based on its PE Ratio (13x) compared to the Forestry industry average (9.6x).
PE vs Market: 3863 is poor value based on its PE Ratio (13x) compared to the JP market (12.7x).
Price to Earnings Growth Ratio
PEG Ratio: 3863 is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: 3863 is good value based on its PB Ratio (0.5x) compared to the JP Forestry industry average (0.6x).
Next Steps
Future Growth
How is Nippon Paper Industries forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
6.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3863's forecast earnings growth (6.9% per year) is above the savings rate (-0.09%).
Earnings vs Market: 3863's earnings (6.9% per year) are forecast to grow slower than the JP market (9.3% per year).
High Growth Earnings: 3863's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3863's revenue (0.5% per year) is forecast to grow slower than the JP market (3.3% per year).
High Growth Revenue: 3863's revenue (0.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 3863's Return on Equity is forecast to be low in 3 years time (4.8%).
Next Steps
Past Performance
How has Nippon Paper Industries performed over the past 5 years?
-46.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3863 has high quality earnings.
Growing Profit Margin: 3863 became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: 3863's earnings have declined by -46.4% per year over the past 5 years.
Accelerating Growth: 3863 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: 3863 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (33.5%).
Return on Equity
High ROE: 3863's Return on Equity (4.2%) is considered low.
Next Steps
Financial Health
How is Nippon Paper Industries's financial position?
Financial Position Analysis
Short Term Liabilities: 3863's short term assets (¥511.0B) exceed its short term liabilities (¥489.0B).
Long Term Liabilities: 3863's short term assets (¥511.0B) exceed its long term liabilities (¥499.7B).
Debt to Equity History and Analysis
Debt Level: 3863's debt to equity ratio (168.9%) is considered high.
Reducing Debt: 3863's debt to equity ratio has increased from 155.6% to 168.9% over the past 5 years.
Debt Coverage: 3863's debt is not well covered by operating cash flow (6.5%).
Interest Coverage: 3863's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Inventory Level: 3863 has a high level of physical assets or inventory.
Debt Coverage by Assets: 3863's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Nippon Paper Industries's current dividend yield, its reliability and sustainability?
2.60%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 3863's dividend (2.53%) is higher than the bottom 25% of dividend payers in the JP market (1.66%).
High Dividend: 3863's dividend (2.53%) is low compared to the top 25% of dividend payers in the JP market (3.7%).
Stability and Growth of Payments
Stable Dividend: 3863 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 3863 has only been paying a dividend for 7 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.8%), 3863's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Toru Nozawa (60yo)
1.17s
Tenure
Mr. Toru Nozawa President & Representative Director at Nippon Paper Industries Co. Ltd. since 2019. Mr. Nozawa served as General Manager of Financial Division of Nippon Paper Industries Co., Ltd. since Jun ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Representative Director | 1.17yrs | no data | 0.0083% ¥14.8m | |
| GM of Technical & Engineering Division & Energy Business Division and Executive Officer | 3.17yrs | no data | no data | |
| Managing Executive Officer | 1.67yrs | no data | 0.0071% ¥12.7m | |
| Senior Managing Executive Officer | 4.67yrs | no data | 0.0080% ¥14.2m | |
| Executive VP Corporate Officer | 10.17yrs | no data | 0.017% ¥29.5m | |
| Managing Executive Officer | 1.17yrs | no data | no data | |
| Managing Executive Officer | 1.17yrs | no data | no data | |
| Senior Managing Corporate Officer | 1.17yrs | no data | no data | |
| Executive Officer | 1.17yrs | no data | 0.0038% ¥6.8m |
1.2yrs
Average Tenure
61yo
Average Age
Experienced Management: 3863's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Representative Director | 1.17yrs | no data | 0.0083% ¥14.8m | |
| Managing Executive Officer | 1.67yrs | no data | 0.0071% ¥12.7m | |
| Senior Managing Executive Officer | 4.67yrs | no data | 0.0080% ¥14.2m | |
| Executive VP Corporate Officer | 10.17yrs | no data | 0.017% ¥29.5m | |
| Executive Officer | 1.17yrs | no data | 0.0038% ¥6.8m | |
| Outside Director | 3.67yrs | no data | 0.00087% ¥1.5m | |
| Chairman | 1.17yrs | no data | 0.023% ¥41.1m | |
| Outside Member of Audit & Supervisory Board | 8.17yrs | no data | no data | |
| Outside Director | 6.67yrs | no data | no data | |
| Outside Director | 0.67yr | no data | no data |
4.2yrs
Average Tenure
65yo
Average Age
Experienced Board: 3863's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Nippon Paper Industries Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nippon Paper Industries Co., Ltd.
- Ticker: 3863
- Exchange: TSE
- Founded: 1949
- Industry: Paper Products
- Sector: Materials
- Market Cap: JP¥177.769b
- Shares outstanding: 115.51m
- Website: https://www.nipponpapergroup.com
Number of Employees
Location
- Nippon Paper Industries Co., Ltd.
- 4-6, Kanda-Surugadai
- Chiyoda-ku
- Tokyo
- 101-0062
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3863 | TSE (The Tokyo Stock Exchange) | Yes | Common Shares | JP | JPY | Jan 1992 |
| 9NI | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1992 |
Biography
Nippon Paper Industries Co., Ltd. engages in paper manufacturing and related businesses in Japan and internationally. The company operates through Paper and Paperboard Business; Livelihood-Related Business; Energy Business; Lumber, Construction Material, Civil Engineering and Construction-Related Business; and Other Business. It offers newsprint, printing and writing, and business communication papers; household paper products, including facial and bath tissues, paper towel, pre-moistened and industrial-use wipes, personal-care product; adult diapers and underwear; wrap and kitchen paper products; wrapping paper, paperboards, paper packs, linerboard and corrugated medium, and converting paper products; and functionality specialty paper products. The company also provides cartons, filling machines, and maintenance services; dissolving pulp, functional chemicals and coating resins, and functional films; logs and lumber products, and building materials; and cellulose nanofibers. In addition, it is involved in energy, agricultural, warehouse, transport, and freight shipment businesses; and the operation of sports clubs and leisure facilities. Nippon Paper Industries Co., Ltd. was founded in 1949 and is headquartered in Tokyo, Japan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 16:21 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.