Daio Paper Corporation (3880) AI Stock Analysis

• Market Cap: ¥162.72B
• Dividend Yield: 1.53%
• Average Volume (3M): 211.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -2.89%
• EPS Growth: -15.89%
• Country: JP
• Employees: 12,372
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 24.33
• Shares Outstanding: 169,012,920
• 10 Day Avg. Volume: 220,710
• 30 Day Avg. Volume: 211,573
• PEG Ratio: 0.04
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 11.19
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥973.00 ▲(3.18% Upside)

The overall stock score is primarily influenced by financial performance challenges, including negative net income and high debt levels, which pose risks to financial stability. Technical analysis shows bullish momentum, but valuation concerns due to a negative P/E ratio weigh heavily on the score. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Sustainability Focus

Daio Paper's focus on sustainability and renewable resources aligns with global trends towards eco-friendly products, potentially enhancing long-term market appeal and compliance with environmental regulations.

Cash Flow Improvement

Improved operating cash flow indicates better cash generation from operations, enhancing liquidity and providing more flexibility for strategic investments and debt management.

Product Diversification

Product diversification across multiple sectors reduces dependency on a single market, potentially stabilizing revenue streams and allowing the company to capitalize on various industry trends.

Negative Factors

High Debt Levels

Increasing debt levels pose a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to interest rate hikes.

Negative Net Income

Negative net income reflects profitability challenges, which can impact the company's ability to reinvest in its business and may affect investor confidence over the long term.

Declining Revenue

Declining revenue trends can indicate weakening market position or demand, potentially affecting long-term growth prospects and necessitating strategic adjustments to regain momentum.

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 primarily through the sale of its paper and pulp products, which includes various types of paper such as printing and writing paper, as well as packaging solutions and sanitary products. Key revenue streams include bulk sales to retail and industrial customers, as well as value-added products that cater to specific market needs. The company also benefits from strategic partnerships with other firms in the supply chain, enhancing its product offerings and market reach. Factors contributing to its earnings include the growing demand for sustainable and eco-friendly products, efficient production processes that reduce costs, and strong distribution networks that ensure product availability.

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. Strategic initiatives to enhance profitability and manage debt could improve financial health going forward.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	660.88B	668.91B	671.69B	646.21B	612.31B	562.93B
Gross Profit	144.32B	144.02B	143.22B	110.20B	161.67B	159.58B
EBITDA	55.73B	52.35B	66.27B	14.06B	83.04B	75.39B
Net Income	-9.78B	-11.20B	4.47B	-34.70B	23.72B	22.11B
Balance Sheet
Total Assets	853.21B	886.07B	939.49B	923.53B	840.44B	849.80B
Cash, Cash Equivalents and Short-Term Investments	104.30B	113.19B	124.02B	102.64B	89.17B	130.64B
Total Debt	422.92B	444.64B	474.83B	481.66B	378.64B	422.58B
Total Liabilities	611.31B	636.35B	679.66B	678.86B	573.74B	603.01B
Stockholders Equity	228.77B	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: 943.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 943 is above the 20-day moving average (MA) of 930.60, above the 50-day MA of 903.34, and above the 200-day MA of 860.25, indicating a bullish trend. The MACD of 17.95 indicates Negative momentum. The RSI at 71.40 is Negative, neither overbought nor oversold. The STOCH value of 87.05 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
8032	75 Outperform	¥89.55B	42.61	―	3.19%	4.06%	-73.92%
3865	66 Neutral	¥159.48B	13.73	4.52%	2.71%	-0.03%	120.35%
3864	64 Neutral	¥29.92B	8.95	3.95%	2.31%	-10.04%	43.13%
3863	62 Neutral	¥137.37B	7.78	3.57%	1.31%	1.64%	-10.74%
3861	62 Neutral	¥886.06B	26.13	2.87%	3.51%	3.91%	-22.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3880	59 Neutral	¥162.72B	-48.75	-1.54%	1.53%	-2.89%	-15.89%

Daio Paper Corporation Corporate Events

Daio Paper Corporation Reports Strong Profit Recovery Despite Sales Decline

Daio Paper Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a decrease in net sales by 4.3% compared to the previous year. However, the company saw a significant increase in operating profit by 130.8% and ordinary profit by 604.5%, indicating a strong recovery in profitability. The company maintained its dividend forecast, reflecting stability in shareholder returns.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen879.00 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 Extraordinary Loss Amid Strong H1 Performance

Daio Paper Corporation announced an extraordinary loss due to a tax purpose reduction entry of non-current assets, following an insurance claim related to a boiler damage incident at a subsidiary. Despite this, the company’s financial results for the first half of FY2026 exceeded forecasts, driven by effective price revisions and structural reforms in its H&PC business, along with foreign exchange gains and a reversal of provisions for business restructuring.

The most recent analyst rating on (JP:3880) stock is a Hold with a Yen879.00 price target. To see the full list of analyst forecasts on Daio Paper Corporation stock, see the JP:3880 Stock Forecast page.