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Daio Paper Corporation (JP:3880)
:3880
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Daio Paper Corporation (3880) AI Stock Analysis

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JP:3880

Daio Paper Corporation

(Frankfurt:3880)

Rating:57Neutral
Price Target:
¥858.00
▲(1.78%Upside)
Daio Paper Corporation's stock score is primarily impacted by financial performance issues, including high debt and negative profitability. Technical analysis suggests some short-term momentum, but valuation concerns due to negative earnings heavily weigh on the overall score. The absence of recent earnings call information limits insight into future guidance.

Daio Paper Corporation (3880) vs. iShares MSCI Japan ETF (EWJ)

Daio Paper Corporation Business Overview & Revenue Model

Company DescriptionDaio Paper Corporation is a leading Japanese paper manufacturing company, primarily engaged in the production and distribution of paper and paperboard products. The company operates in various sectors, including household paper products, printing and communication paper, and packaging. Daio Paper is known for its comprehensive range of products that cater to both industrial and consumer markets, with a strong emphasis on innovation and sustainability.
How the Company Makes MoneyDaio Paper Corporation generates revenue through the manufacturing and sale of a diverse array of paper products. Key revenue streams include household paper products such as tissues, toilet paper, and diapers, which are sold to consumers and retailers. Additionally, the company earns income from the sale of printing and communication paper to businesses and publishers. Packaging materials also contribute significantly to Daio's earnings, serving industries such as food, beverages, and consumer goods. The company's strategic partnerships and investments in sustainable production processes further enhance its profitability by aligning with global environmental standards and reducing operational costs.

Daio Paper Corporation Financial Statement Overview

Summary
Daio Paper Corporation faces financial challenges with fluctuating revenues and profitability issues, reflected in negative net income and decreasing equity strength. The company's high debt levels pose a risk to financial stability, despite some improvements in operating cash flow.
Income Statement
60
Neutral
The company's revenue has shown fluctuations, with a recent decline from the previous year. Gross profit margin remains relatively stable around 21-22%, but net profit margin has significantly deteriorated, turning negative in the latest period due to a net loss. EBIT and EBITDA margins show volatility, with recent positive EBITDA indicating potential operational efficiency improvements despite negative EBIT in some years.
Balance Sheet
55
Neutral
The balance sheet indicates high leverage with a debt-to-equity ratio increasing over time, posing financial stability risks. Equity ratio decreased, reflecting higher liabilities relative to assets. Return on equity has been negative recently due to net losses. Overall, the company faces challenges with maintaining a strong equity position amidst high debt levels.
Cash Flow
65
Positive
Operating cash flow improved after a negative period, indicating better cash generation from operations. However, free cash flow has declined significantly, suggesting less cash available after capital expenditures. The operating cash flow to net income ratio is strong, showing efficient cash conversion from earnings, but free cash flow to net income ratio is strained due to capital spending.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue668.91B671.69B646.21B612.31B562.93B
Gross Profit144.02B143.22B110.20B161.67B159.58B
EBITDA52.35B66.27B14.06B79.83B75.39B
Net Income-11.20B4.51B-34.70B23.72B22.11B
Balance Sheet
Total Assets886.07B939.49B923.53B840.44B849.80B
Cash, Cash Equivalents and Short-Term Investments113.19B124.02B102.64B89.17B130.64B
Total Debt444.64B474.83B481.66B378.64B422.58B
Total Liabilities636.35B679.66B678.86B573.74B603.01B
Stockholders Equity236.72B247.41B235.12B259.09B239.23B
Cash Flow
Free Cash Flow12.24B28.09B-75.43B4.29B6.18B
Operating Cash Flow44.65B59.30B-26.23B71.39B64.21B
Investing Cash Flow-20.90B-26.54B-57.95B-62.42B-103.70B
Financing Cash Flow-35.49B-13.61B96.44B-50.61B63.59B

Daio Paper Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price843.00
Price Trends
50DMA
821.42
Positive
100DMA
836.25
Positive
200DMA
836.82
Positive
Market Momentum
MACD
4.51
Positive
RSI
56.07
Neutral
STOCH
48.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3880, the sentiment is Positive. The current price of 843 is above the 20-day moving average (MA) of 832.20, above the 50-day MA of 821.42, and above the 200-day MA of 836.82, indicating a bullish trend. The MACD of 4.51 indicates Positive momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3880.

Daio Paper Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥97.97B10.71
3.82%3.80%-22.03%
74
Outperform
$732.22B15.624.18%3.25%9.02%-8.77%
71
Outperform
¥128.94B28.380.90%0.90%1.30%-80.06%
71
Outperform
¥178.90B10.146.29%3.17%3.86%-0.18%
70
Outperform
€171.75B11.075.99%2.20%2.92%84.86%
66
Neutral
€29.25B6.644.96%2.28%-9.06%4.04%
57
Neutral
€139.97B-4.63%1.66%-0.41%-348.22%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3880
Daio Paper Corporation
857.00
34.58
4.20%
JP:8032
Japan Pulp and Paper Co. Ltd.
658.00
87.11
15.26%
JP:3865
Hokuetsu Corporation
1,043.00
-57.98
-5.27%
JP:3864
Mitsubishi Paper Mills
674.00
64.41
10.57%
JP:3863
Nippon Paper
1,131.00
235.59
26.31%
JP:3861
Oji Holdings
744.70
185.83
33.25%

Daio Paper Corporation Corporate Events

Daio Paper Completes Asset Transfer with Minimal Financial Impact
Jul 7, 2025

Daio Paper Corporation has completed the partial transfer of fixed assets from its subsidiary, Elleair International China (Nantong) Co., Ltd., to Hangzhou Haoyue Industrial Co., Ltd. This transfer is not expected to significantly impact the company’s consolidated financial results for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Restores Boiler, Boosts Sustainability Efforts
Jul 1, 2025

Daio Paper Corporation announced the successful restoration and restart of a boiler at its subsidiary, Iwaki Daio Paper Corporation, which was previously damaged in an accident. The restart marks a significant step in sustainability, as the mill will now operate using 100% renewable energy sources, reducing fossil fuel usage significantly. This move is expected to enhance the company’s operational efficiency and environmental footprint, benefiting stakeholders and the local community.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Completes Subsidiary Share Transfer
Jun 30, 2025

Daio Paper Corporation has completed the transfer of all shares of its consolidated subsidiary, Elleair International Turkey, to Evyap Hijyenik Ürünler Sanayi ve Ticaret A.Ş. and Evyap Sabun Yağ Gliserin Sanayi ve Ticaret A.Ş. This transaction, finalized on June 27, 2025, will exclude the subsidiary from Daio Paper’s consolidation scope. The impact on the company’s financial results for the fiscal year ending March 31, 2026, is expected to be insignificant.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Strengthens Strategic Alliance with Hokuetsu Corporation
Jun 26, 2025

Daio Paper Corporation has announced its strategic business alliance with Hokuetsu Corporation, which holds 24.82% of its voting rights, aiming to enhance corporate value through collaborative initiatives. Despite this relationship, Daio Paper maintains its independence in management and business activities, ensuring no constraints from Hokuetsu on its operations.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Announces Change in Subsidiary Transferee
May 27, 2025

Daio Paper Corporation has announced a change in the transferee for its subsidiary, Elleair International Turkey, transferring shares to two group companies of Evyap Holding. This strategic move, decided after considering the management structure post-acquisition, will not affect Daio’s consolidated financial results.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Corporation Amends Share-Based Compensation System
May 27, 2025

Daio Paper Corporation announced a partial amendment and continuation of its share-based compensation system for directors, aligning their compensation with company performance and share value. This move aims to motivate directors to achieve performance targets and enhance corporate value, impacting the company’s operational strategy and stakeholder interests.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Proposes Amendments to Enhance Governance Structure
May 27, 2025

Daio Paper Corporation announced a proposal for a partial amendment to its Articles of Incorporation, which will be discussed at the upcoming Annual General Meeting of Shareholders. The amendments aim to transition the company to a structure with an audit and supervisory committee, enhancing corporate governance and decision-making processes. This transition is expected to improve the company’s ability to respond to the rapidly changing business environment and increase corporate value.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Reports Significant Losses Due to Overseas Impairments
May 15, 2025

Daio Paper Corporation announced significant extraordinary losses in its non-consolidated financial results for the fiscal year ending March 31, 2025, due to impairments in its foreign subsidiaries. The company recorded a loss on valuation of investments in its Chinese subsidiary, Elleair International China, and a reduction in the book value of shares in its Turkish subsidiary, Elleair International Turkey. These financial adjustments were part of a broader restructuring effort, which also included the sale of non-core assets and recognition of deferred tax assets. Despite these efforts, the company reported a substantial net loss, primarily due to underperformance in overseas markets, which could not be offset by domestic gains.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen900.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Daio Paper Reports Decline in Fiscal Year 2025 Financial Results
May 15, 2025

Daio Paper Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decline in net sales and significant drops in operating and ordinary profits compared to the previous year. The company also announced changes in its subsidiaries and accounting policies, which may impact its future financial performance.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen860.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025