# Hokuetsu Corporation: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第188期(2025/04/01－2026/03/31) (S100YITB)
> Page: https://vizora.meequs.com/en/company/hokuetsu
> Retrieved: 2026-09-30T19:49:43.397Z

## Company

Hokuetsu, founded in 1907, is a company in Paper & Pulp listed on TSE Prime. It has 3,728 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Hokuetsu Corporation |
| Ticker | 3865 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/3865.T) |
| Listing | TSE Prime |
| Head office | 新潟県長岡市西蔵王三丁目5番1号(同所は登記上の本店所在地で実際の業務は下記で行っております。) |
| Representative (per filing) | 代表取締役会長 グループCEO 岸本晢夫 |
| Founded | Apr 1907 |
| Share capital | ¥42B |
| Employees (consolidated) | 3,728 |
| Average salary (parent only) | ¥6.3M |
| Fiscal year end | March |
| Website | www.hokuetsucorp.com (https://www.hokuetsucorp.com/) |
| Corporate number | 6110001023149 |
| EDINET | E00645 |
| Industries (Vizora) | Paper & Pulp, Food Packaging |

> Profile source: annual securities report (S100YITB, filed 2026-06-25). As of filing

## Five-axis industry profile

Primary industry: Paper & Pulp (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 73.5 | 17 |
| Profitability | 26.5 | 17 |
| Cash conversion | 38.2 | 17 |
| Efficiency | 26.5 | 17 |
| Financial strength | 70 | 5 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 91% of Hokuetsu's sales come from Paper pulp, with Packaging and paper processing and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥3 is left as operating profit.
- Revenue changed -5.9% from the prior year, operating profit -61.8%.

## Company structure

- Segment revenue mix: Paper pulp 90.8%、Packaging and paper processing 6.1%、Other 3.1%
- Revenue → net income: ¥287736000000 → ¥7453000000
- Net income → operating cash flow: ¥7453000000 → ¥10192000000（difference ¥2739000000）
- Main uses of operating cash flow: CapEx ¥16690000000 / dividends ¥4051000000 / buybacks ¥10986000000
- Change in cash: ¥1272000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥287.7B |  |
| Operating income | ¥7.54B | Margin 2.6% |
| Net income | ¥7.3B | Margin 2.5% |
| Free cash flow | -¥6.5B |  |
| Largest business | Paper pulp | of segment revenue 90.8% |
| Employees (consolidated) | 3,728 |  |
| EPS | ¥83.9 |  |
| Diluted EPS | ¥83.83 |  |
| Book value per share | ¥990.39 |  |
| Equity ratio | 59.9% |  |
| Shares outstanding | 163,053,000 |  |
| Treasury shares | 3,531,600 |  |
| Shareholders | 7,534 |  |
| Average salary (parent only) | ¥6.3M | Filing company only |
| Cash ratio | 6.3% | Net cash -¥44.5B · Cash ÷ revenue 9.2% |
| Vs. industry median margin | -1.1 pp | Paper & Pulp |
| ROE | 3.3% | Derived from disclosed figures |
| ROA | 1.7% | Derived from disclosed figures |

## Notable figures

- FY2026, buybacks were 2.7× dividends
- FY2026, one segment accounts for 83% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥222454000000 | ¥287736000000 | +29.3% |
| Operating income | ¥1701000000 | ¥7539000000 | +343.2% |
| Operating margin | 0.8% | 2.6% | +1.9 pp |
| Employees | 4,545 people | 3,728 people | -18.0% |
| Cash and equivalents | ¥29846000000 | ¥26421000000 | -11.5% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 紙パルプ事業 → 紙パルプ事業 | 87.3% |
| パッケージング・紙加工事業 → パッケージング・紙加工事業 | 6.1% |
| パッケージング・紙加工事業 → 事業再編・廃止 | 0.8% |
| その他 → その他 | 3.1% |
| その他 → 事業再編・廃止 | 0.5% |
| 木材事業 → 事業再編・廃止 | 1.5% |
| エンジニアリング事業 → 事業再編・廃止 | 0.4% |
| 運送・倉庫事業 → 事業再編・廃止 | 0.4% |
| 新設・再編 → 紙パルプ事業 | 3.5% |

Segment revenue source references: 9 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Paper pulp | 5 years | +5.6% | ¥261384000000 | 2.3% | 2 |
| Packaging and paper processing | 5 years | +2.3% | ¥17437000000 | 3.2% | 2 |
| Other | 5 years | +2.0% | ¥8914000000 | 7.3% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 287,736 | 100.0% | S100YITB |
| Cost of revenue | 231,277 | 80.4% | S100YITB |
| Gross profit | 56,458 | 19.6% | S100YITB |
| SG&A | 48,919 | 17.0% | S100YITB |
| Operating income | 7,539 | 2.6% | S100YITB |
| Ordinary income | 11,271 | 3.9% | S100YITB |
| Pretax income | 11,525 | 4.0% | S100YITB |
| Income tax | 4,071 | 1.4% | S100YITB |
| Net income | 7,453 | 2.6% | S100YITB |
| Net income attributable to owners | 7,299 | 2.5% | S100YITB |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 80 |
| SG&A | 17 |
| Operating income | 3 |
| (Ref.) Net income | 3 |

### Margin funnel

Gross margin 19.6% → Operating margin 2.6% → Net margin 2.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit down
Revenue growth: -5.9%; Core profit growth: -61.8%
Operating leverage (core profit growth ÷ revenue growth): 10.50×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 305,718 | 287,736 | -17,982 | -5.9% |
| Gross profit | 68,798 | 56,458 | -12,340 | -17.9% |
| Operating income | 19,727 | 7,539 | -12,188 | -61.8% |
| Net income attributable to owners | 15,529 | 7,299 | -8,230 | -53.0% |
| Operating cash flow | 40,932 | 10,192 | -30,740 | -75.1% |
| Free cash flow | 23,279 | -6,498 | -29,777 | -127.9% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 264,618 | 11,208 | 4.2% | 8,072 | 43,974 | 29,117 | S100LM7P |
| FY ending Mar 2021 | 222,454 | 1,701 | 0.8% | 14,172 | 23,760 | 8,234 | S100ODRU |
| FY ending Mar 2022 | 261,616 | 20,455 | 7.8% | 21,206 | 20,186 | 7,268 | S100R6PJ |
| FY ending Mar 2023 | 301,204 | 17,288 | 5.7% | 8,325 | 1,746 | -10,769 | S100TT3P |
| FY ending Mar 2024 | 297,056 | 15,267 | 5.1% | 8,387 | 22,320 | 8,826 | S100WC63 |
| FY ending Mar 2025 | 305,718 | 19,727 | 6.5% | 15,529 | 40,932 | 23,279 | S100YITB |
| FY ending Mar 2026 | 287,736 | 7,539 | 2.6% | 7,299 | 10,192 | -6,498 | S100YITB |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥77.2M |
| Operating income per employee (consolidated) | ¥2M |
| Net income per employee (consolidated) | ¥2M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 4,270 | 4,163 | 3,749 | 3,711 | 3,728 |
| Average salary (parent company) | ¥5.6M | ¥5.8M | ¥5.6M | ¥6.1M | ¥6.3M |
| Average age (parent company) | 43.0 years | 44.0 years | 44.0 years | 45.0 years | 45.0 years |
| Average tenure (parent company) | 21.0 years | 21.0 years | 22.0 years | 22.0 years | 22.0 years |

Year over year: Employees (consolidated) +0.5% · Revenue (consolidated) -5.9%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Paper pulp | 261,384 | 90.8% | 5,963 | 2.3% |
| Packaging and paper processing | 17,437 | 6.1% | 558 | 3.2% |
| Other | 8,914 | 3.1% | 647 | 7.3% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Paper pulp | 90.8% | 83.2% | -7.7 | 2.3% |
| Packaging and paper processing | 6.1% | 7.8% | 1.7 | 3.2% |
| Other | 3.1% | 9.0% | 5.9 | 7.3% |

Segment → industry: Packaging and paper processing → Paper & Pulp / Paper pulp → Paper & Pulp / Packaging and paper processing → Food Packaging

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 10,192 | 3.5% | S100YITB |
| Capital expenditure | 16,690 | 5.8% | S100YITB |
| Free cash flow | -6,498 | -2.3% | 算出 |
| Investing cash flow | -3,279 | -1.1% | S100YITB |
| Financing cash flow | -6,254 | -2.2% | S100YITB |
| Dividends paid | 4,051 | 1.4% | S100YITB |
| Share buyback | 10,986 | 3.8% | S100YITB |
| Change in cash | 1,272 | 0.4% | S100YITB |
| Cash and equivalents | 26,421 | 9.2% | S100YITB |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 30,275 | 18,063 | 22,140 | 25,148 | 26,421 | S100TT3P, S100WC63, S100YITB |
| Total assets | 376,956 | 388,444 | 415,692 | 418,882 | 420,574 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Net assets | 216,974 | 225,950 | 252,464 | 265,870 | 252,747 | S100TT3P, S100WC63, S100YITB |
| Share capital | 42,020 | 42,020 | 42,020 | 42,020 | 42,020 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Property, plant and equipment | 115,382 | 117,060 | 116,511 | 121,988 | 128,172 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Intangible assets excluding goodwill | 2,406 | 2,467 | 2,540 | 3,232 | 3,604 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Investment securities | 22,022 | 22,272 | 31,926 | 30,608 | 68,667 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Current assets | 160,308 | 170,775 | 179,879 | 179,486 | 189,330 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Current liabilities | 91,796 | 85,865 | 82,197 | 82,005 | 88,691 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Trade payables | 20,360 | 21,283 | 22,900 | 24,194 | 23,046 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Short-term borrowings | 40,748 | 17,058 | 25,889 | 27,170 | 7,984 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Long-term borrowings | 33,495 | 54,938 | 44,718 | 35,198 | 47,896 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Bonds | 20,000 | 10,000 | 25,000 | 25,000 | 15,000 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Interest-bearing debt | 94,243 | 81,996 | 95,607 | 87,368 | 70,880 | 算出 |
| Total liabilities | 159,981 | 162,494 | 163,228 | 153,012 | 167,827 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Non-controlling interests | 644 | 649 | 676 | 741 | 858 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Equity attributable to owners of parent | 209,338 | 213,226 | 217,861 | 229,228 | 206,939 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Retained earnings | 131,615 | 135,489 | 140,480 | 151,825 | 122,792 | S100R6PJ, S100TT3P, S100WC63, S100YITB |
| Treasury stock | -9,639 | -9,625 | -9,593 | -9,575 | -3,062 | S100R6PJ, S100TT3P, S100WC63, S100YITB |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 6% | S100YITB |
| Property, plant and equipment | 31% | S100YITB |
| Intangibles and goodwill | 1% | S100YITB |
| Investment securities | 16% | S100YITB |
| Other assets | 46% | S100YITB |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 5% | S100YITB |
| Interest-bearing debt | 17% | 算出 |
| Other liabilities | 18% | S100YITB |
| Equity | 60% | S100YITB |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 376,956 | 388,444 | 415,692 | 418,882 | 420,574 |
| Equity | 216,974 | 225,950 | 252,464 | 265,870 | 252,747 |
| Interest-bearing debt | 94,243 | 81,996 | 95,607 | 87,368 | 70,880 |
| Cash | 30,275 | 18,063 | 22,140 | 25,148 | 26,421 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 44.5% | S100YITB |
| Fixed assets ÷ total assets | 30.5% | S100YITB |
| Goodwill ÷ parent equity | — | —, S100YITB |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 6.3% |
| Cash ÷ revenue | 9.2% |
| Net cash (cash − interest-bearing debt) | -¥44.5B |
| Net debt ÷ operating cash flow | 4.36× |
| Cash conversion (operating CF ÷ operating income) | 135.2% |
| Cash vs. profit gap | 2,893 JPY mn (of net income 39.6%) |
| Shareholder returns / net income | 206.0% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 55.5% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 5.8% |
| Investing CF relative to operating CF | 32.2% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 8.1% | 0.69× | 5.6% | 1.80× | 10.1% | S100R6PJ |
| 2023 | 2.8% | 0.79× | 2.2% | 1.81× | 3.9% | S100TT3P |
| 2024 | 2.8% | 0.74× | 2.1% | 1.87× | 3.9% | S100WC63 |
| 2025 | 5.1% | 0.73× | 3.7% | 1.87× | 6.9% | S100YITB |
| 2026 | 2.5% | 0.69× | 1.7% | 1.92× | 3.3% | S100YITB |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 大王製紙㈱ | Major shareholder | 17.5% | 2026-03-31 |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 7.6% | 2026-03-31 |
| ㈱第四北越銀行 | Major shareholder | 5.2% | 2026-03-31 |
| 北越コーポレーション持株会 | Major shareholder | 4.5% | 2026-03-31 |
| ㈱日本カストディ銀行（金銭信託課税口） | Major shareholder | 3.8% | 2026-03-31 |
| OASIS JAPAN STRATEGIC FUND LTD.（常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 3.5% | 2026-03-31 |
| 損害保険ジャパン㈱ | Major shareholder | 2.8% | 2026-03-31 |
| 農林中央金庫 | Major shareholder | 2.2% | 2026-03-31 |
| 新生紙パルプ商事㈱ | Major shareholder | 1.9% | 2026-03-31 |
| ㈱日本カストディ銀行（三井住友信託銀行再信託分・王子マネジメントオフィス㈱退職給付信託口） | Major shareholder | 1.8% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第188期(2025/04/01－2026/03/31) | S100YITB | 2026-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YITB,, |
| 訂正有価証券報告書－第187期(2024/04/01－2025/03/31) | S100WC63 | 2025-07-10 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100WC63,, |
| 有価証券報告書－第186期(2023/04/01－2024/03/31) | S100TT3P | 2024-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TT3P,, |
| 有価証券報告書－第185期(2022/04/01－2023/03/31) | S100R6PJ | 2023-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R6PJ,, |
| 有価証券報告書－第184期(令和3年4月1日－令和4年3月31日) | S100ODRU | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100ODRU,, |
| 有価証券報告書－第183期(令和2年4月1日－令和3年3月31日) | S100LM7P | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LM7P,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| 大王製紙 | Capital alliance | 戦略的業務提携。相互に株式を持ち合う対等な資本関係を構築 | S100YJ8D |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).