Daio Paper Corporation (JP:3880)
:3880
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Daio Paper Corporation
(3880)
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Rating:49Neutral
Price Target:
¥964.00
▲(2.23% Upside)
Action:Reiterated
Date:05/16/26
The score is held back primarily by elevated leverage and historically volatile profitability despite a noticeable 2026 earnings and cash-flow recovery. Technical indicators are also soft (negative MACD and trading below key moving averages), while valuation is only moderately supportive with a mid-teens dividend yield and P/E near 19.
Positive Factors
Improved cash generation
Operating and free cash flow strengthened materially in 2026 versus prior weak years, providing durable internal funding for capital needs, working capital and modest debt servicing. Sustained positive FCF improves financial flexibility if maintained across cycles.
Negative Factors
High and persistent leverage
Very elevated leverage and declining equity materially constrain strategic flexibility, increase interest expense sensitivity and limit capacity for acquisitions or capex without refinancing. High debt amplifies downside in cyclical demand shocks and slows deleveraging absent sustained cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Operating and free cash flow strengthened materially in 2026 versus prior weak years, providing durable internal funding for capital needs, working capital and modest debt servicing. Sustained positive FCF improves financial flexibility if maintained across cycles.
Read all positive factors
Daio Paper Corporation (3880) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥159.06B
Dividend Yield1.53%
Average Volume (3M)211.57K
Price to Earnings (P/E)19.0
Beta (1Y)0.72
Revenue Growth-1.57%
EPS GrowthN/A
CountryJP
Employees12,372
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)-58.77
Shares Outstanding169,012,920
10 Day Avg. Volume220,710
30 Day Avg. Volume211,573
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.75
Price to Sales (P/S)0.25
P/FCF Ratio4.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)68.08
Revenue Forecast (FY)¥677.10B
Daio Paper Corporation Business Overview & Revenue Model
Company Description
Daio Paper Corporation operates as a paper manufacturer in Japan and internationally. The company operates through two segments, Paper and Paperboard business, and Home and Personal Care business. It manufactures, processes, and sells paper, paper...
How the Company Makes Money
Daio Paper makes money primarily by manufacturing and selling paper-based products and related goods. Its revenue model is centered on (1) sales of finished products to retailers, wholesalers, and other business customers, and (2) supplying produc...
Daio Paper Corporation Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
43
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 660.88B | 666.77B | 668.91B | 671.69B | 646.21B | 612.31B |
| Gross Profit | 144.32B | 158.89B | 144.02B | 143.22B | 110.20B | 161.67B |
| EBITDA | 57.55B | 71.03B | 58.25B | 63.30B | 26.20B | 79.83B |
| Net Income | -9.78B | 8.89B | -11.20B | 4.47B | -34.71B | 23.72B |
Balance Sheet | ||||||
| Total Assets | 853.21B | 853.93B | 886.07B | 939.75B | 923.53B | 840.44B |
| Cash, Cash Equivalents and Short-Term Investments | 104.30B | 96.03B | 113.19B | 124.02B | 102.64B | 89.17B |
| Total Debt | 422.92B | 440.82B | 455.41B | 485.63B | 490.30B | 380.36B |
| Total Liabilities | 611.31B | 611.17B | 636.35B | 679.65B | 678.86B | 573.73B |
| Stockholders Equity | 228.77B | 226.91B | 236.72B | 247.66B | 235.12B | 259.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 34.64B | 12.24B | 29.20B | -72.84B | 7.61B |
| Operating Cash Flow | 0.00 | 57.30B | 44.65B | 59.30B | -26.23B | 71.39B |
| Investing Cash Flow | 0.00 | -44.92B | -20.90B | -26.54B | -57.95B | -61.91B |
| Financing Cash Flow | 0.00 | -32.09B | -35.49B | -13.61B | 96.44B | -51.12B |
Daio Paper Corporation Technical Analysis
Negative
943.00
Price Trends
1006.88
Negative
1014.69
Negative
942.92
Negative
Market Momentum
-16.60
Positive
34.20
Neutral
44.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3880, the sentiment is Negative. The current price of 943 is below the 20-day moving average (MA) of 958.90, below the 50-day MA of 1006.88, and above the 200-day MA of 942.92, indicating a bearish trend. The MACD of -16.60 indicates Positive momentum. The RSI at 34.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3880.
Daio Paper Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ¥157.59B | 12.48 | 3.57% | 1.31% | 0.86% | 158.75% | |
65 Neutral | ¥132.24B | 26.17 | ― | 3.19% | 9.42% | -35.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥769.77B | 13.87 | 2.55% | 3.51% | 0.67% | 31.73% | |
57 Neutral | ¥141.94B | 43.56 | 3.97% | 2.71% | -5.88% | -52.79% | |
55 Neutral | ¥48.68B | 19.03 | -0.13% | 2.31% | -10.51% | -56.26% | |
49 Neutral | ¥159.06B | 19.04 | 1.66% | 1.53% | -1.57% | ― |
* Basic Materials Sector Average
JP:3880
Daio Paper Corporation
920.00
81.11
9.67%
JP:3864
Mitsubishi Paper Mills
1,088.00
475.41
77.61%
JP:3863
Nippon Paper
1,360.00
319.39
30.69%
JP:3861
Oji Holdings
775.80
126.59
19.50%
JP:3865
Hokuetsu Corporation
879.00
-92.06
-9.48%
JP:8032
Japan Pulp and Paper Co. Ltd.
1,150.00
579.46
101.56%
Daio Paper Corporation Corporate Events
Daio Paper Books Impairment on China Unit as Profits Beat Forecasts for FY2026
May 15, 2026
Daio Paper Corporation recorded a ¥12.1 billion impairment loss on investments in its overseas subsidiary Elleair International China (Nantong) Co., Ltd., after concluding that the subsidiary’s value had significantly declined with no p...
Daio Paper Returns to Profit and Keeps Dividend as Earnings Rebound
May 15, 2026
Daio Paper swung back to profit in the fiscal year ended March 31, 2026, as operating profit surged 145.0% to ¥24.0 billion and ordinary profit climbed 371.0% to ¥21.3 billion, despite a slight 0.3% dip in net sales to ¥666.8 billio...
Daio Paper to End Hokuetsu’s Status as Affiliated Company After Major Share Buyback
Mar 19, 2026
Daio Paper Corporation announced that Hokuetsu Corporation will cease to qualify as its other affiliated company after Daio repurchases 11 million of its own shares previously held by Hokuetsu through an off-auction share buyback. Following settle...
Daio Paper Completes ¥13.7 Billion Share Buyback to Support Capital Strategy
Mar 19, 2026
Daio Paper has completed a share repurchase program launched on March 18, 2026, acquiring 12,240,000 of its own common shares for approximately ¥13.7 billion via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 trading system on March 1...
Daio Paper Reshapes Asset Portfolio to Deepen Capital Ties With Hokuetsu
Mar 18, 2026
Daio Paper has approved a bundled set of transactions to rebalance its capital relationship with Hokuetsu Corporation, a strategic partner with which it has already achieved cost reductions in logistics and raw material purchasing. The company pla...
Daio Paper Launches ¥18.2 Billion Share Buyback as Hokuetsu Cuts Stake
Mar 18, 2026
Daio Paper Corporation’s board has approved a share repurchase of up to 13 million shares, or 7.75% of its outstanding stock, for a total of up to ¥18.24 billion, using the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading syst...
Daio Paper and Hokuetsu Deepen Alliance With Balanced Cross-Shareholdings
Mar 18, 2026
Daio Paper and Hokuetsu have signed a new memorandum of understanding to deepen their strategic business alliance by moving toward a more balanced cross-shareholding structure. The companies aim to enhance joint competitiveness and corporate value...
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.