Daio Paper Corporation (3880) AI Stock Analysis

• Market Cap: €137.15B
• Dividend Yield: 1.69%
• Average Volume (3M): 272.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -0.41%
• EPS Growth: -348.22%
• Country: JP
• Employees: 12,372
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -29.54
• Shares Outstanding: 169,012,920
• 10 Day Avg. Volume: 273,180
• 30 Day Avg. Volume: 272,596
• PEG Ratio: 0.06
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €872.63
• Price Target Upside: 4.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: ¥847.00 ▲(1.32%Upside)

Daio Paper Corporation's overall stock score is driven by significant financial challenges, including negative earnings and high debt levels. Technical analysis indicates potential resistance with overbought conditions, and the valuation is poor due to negative earnings. The lack of earnings call data and corporate events further limits positive assessment.

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, paperboard, pulp, and their by-products, as well as commodities and miscellaneous goods. The company also offers newsprint, publication, printing, communication, wrapping, recycled-content colored construction, and self-adhesive papers; containerboard and corrugated container products; functional materials for use in a range of fields, including food packaging, medical care, construction, agriculture, and electrical and electronic sectors; and home and personal care products, such as facial and toilet tissues, diapers, paper towels, sanitary napkins, kitchen papers and towels, paper napkins, disposable diapers, wet wipes, specialty papers, household papers, processed paper products, etc. In addition, it is involved in the manufacture, processing, and sale of functional added films, and adhesive sheets, as well as synthetic resin materials, such as adhesives; and design, installation, purchase, and sale of plants; buying and selling of raw materials and fuel; and cellulose nanofiber business. Daio Paper Corporation was incorporated in 1943 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daio Paper Corporation generates revenue through multiple streams, primarily driven by its diverse product portfolio. The paper segment, which includes printing and writing paper as well as containerboard, contributes significantly to its revenue, catering to both domestic and international markets. The home and personal care segment, featuring products like tissue paper, diapers, and sanitary products, also plays a crucial role in its earnings, benefiting from steady consumer demand. Additionally, the packaging segment, which provides corrugated containers and other packaging solutions, supports various industries, enhancing its revenue potential. The company also engages in strategic partnerships and invests in sustainable and innovative practices to bolster its market position and drive growth.

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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	670.20B	668.91B	671.69B	646.21B	612.31B	562.93B
Gross Profit	142.91B	144.02B	143.22B	110.20B	161.67B	159.58B
EBITDA	61.73B	52.35B	66.27B	14.06B	79.83B	75.39B
Net Income	-3.79B	-11.20B	4.51B	-34.70B	23.72B	22.11B
Balance Sheet
Total Assets	903.01B	886.07B	939.49B	923.53B	840.44B	849.80B
Cash, Cash Equivalents and Short-Term Investments	106.03B	113.19B	124.02B	102.64B	89.17B	130.64B
Total Debt	449.69B	444.64B	474.83B	481.66B	378.64B	422.58B
Total Liabilities	654.62B	636.35B	679.66B	678.86B	573.74B	603.01B
Stockholders Equity	235.58B	236.72B	247.41B	235.12B	259.09B	239.23B
Cash Flow
Free Cash Flow	0.00	12.24B	28.09B	-75.43B	4.29B	6.18B
Operating Cash Flow	0.00	44.65B	59.30B	-26.23B	71.39B	64.21B
Investing Cash Flow	0.00	-20.90B	-26.54B	-57.95B	-62.42B	-103.70B
Financing Cash Flow	0.00	-35.49B	-13.61B	96.44B	-50.61B	63.59B

Daio Paper Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 836.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 836 is above the 20-day moving average (MA) of 801.90, above the 50-day MA of 834.60, and below the 200-day MA of 839.11, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 86.60 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	€1.19B	5.82	-1.74%	4.06%	26.19%	-52.76%
3880	53 Neutral	€137.15B	―	-4.63%	1.69%	-0.41%	-348.22%
MPX		€166.56M	6.04	4.96%	2.34%	―	―
NIJPF		$818.26M	27.77	0.90%	<0.01%	―	―
OJIPF		$5.01B	16.39	4.18%	0.02%	―	―
HPE		€1.01B	10.63	5.99%	2.16%	―	―
8032	77 Outperform	¥93.06B	10.17		4.00%	3.80%	-22.03%

Daio Paper Corporation Corporate Events

Daio Paper Completes Asset Transfer with Minimal Financial Impact

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

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

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

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

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

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

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

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

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.