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Daio Paper Corporation
(3880)
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Rating:52Neutral
Price Target:
¥983.00
▲(4.24% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by a recovering but still risky financial profile: improved 2026 profitability and free cash flow are offset by high leverage, declining equity, and thin/volatile net margins. Technical indicators are broadly neutral with only modest positive bias, and valuation (P/E ~20, ~1.44% yield) is average and does not strongly improve or worsen the outlook.
Positive Factors
Profitability Recovery
The return to positive operating and EBITDA profitability indicates improving execution and cost absorption. If maintained, this recovery can strengthen internal funding and provide a more durable earnings base, although margins remain modest.
Negative Factors
High Leverage
Persistently high leverage increases financial risk and interest-burden sensitivity, while limiting flexibility to invest or absorb weaker demand. The balance sheet therefore remains a constraint even after the 2026 operating recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The return to positive operating and EBITDA profitability indicates improving execution and cost absorption. If maintained, this recovery can strengthen internal funding and provide a more durable earnings base, although margins remain modest.
Read all positive factors
Daio Paper Corporation (3880) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥164.38B
Dividend Yield1.42%
Average Volume (3M)211.57K
Price to Earnings (P/E)20.3
Beta (1Y)0.55
Revenue Growth1.33%
EPS GrowthN/A
CountryJP
Employees11,639
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)48.42
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)73.71
Revenue Forecast (FY)¥687.84B
Daio Paper Corporation Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1943, Daio Paper Corporation functions as a global paper manufacturing enterprise. Its operations are organized into two primary divisions: Paper and Paperboard, and Home and Personal Care. The Paper and Paperboard ...
How the Company Makes Money
Daio Paper makes money primarily by manufacturing and selling paper and paper-related products to both consumer and business customers. Key revenue streams typically include: (1) Household/hygiene paper products: Sales of branded and/or private-la...
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 | 669.70B | 666.77B | 668.91B | 671.69B | 646.21B | 612.31B |
| Gross Profit | 159.45B | 158.89B | 144.02B | 143.22B | 110.20B | 161.67B |
| EBITDA | 73.49B | 74.78B | 52.35B | 66.27B | 14.06B | 83.04B |
| Net Income | 8.09B | 8.89B | -11.20B | 4.47B | -34.71B | 23.72B |
Balance Sheet | ||||||
| Total Assets | 856.62B | 853.93B | 886.07B | 939.75B | 923.53B | 840.44B |
| Cash, Cash Equivalents and Short-Term Investments | 105.51B | 96.03B | 113.19B | 124.02B | 102.64B | 89.17B |
| Total Debt | 404.89B | 440.82B | 455.41B | 485.63B | 490.30B | 380.36B |
| Total Liabilities | 610.53B | 611.17B | 636.35B | 679.65B | 678.86B | 573.73B |
| Stockholders Equity | 228.76B | 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
Positive
943.00
Price Trends
958.84
Positive
961.63
Positive
972.22
Positive
Market Momentum
5.06
Negative
54.45
Neutral
72.84
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 943 is below the 20-day moving average (MA) of 978.90, below the 50-day MA of 958.84, and below the 200-day MA of 972.22, indicating a bullish trend. The MACD of 5.06 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 72.84 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | ¥139.48B | 26.22 | ― | 3.19% | 9.61% | -3.44% | |
62 Neutral | ¥747.33B | 12.37 | 5.27% | 4.08% | 0.22% | 208.36% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥53.12B | 9.73 | 2.17% | 2.31% | -8.09% | 76.25% | |
56 Neutral | ¥159.09B | 16.90 | 2.43% | 0.99% | 2.22% | 27.47% | |
53 Neutral | ¥146.21B | 22.48 | 2.79% | 2.81% | -5.23% | -55.21% | |
52 Neutral | ¥164.38B | 20.34 | 3.83% | 1.53% | 1.33% | ― |
* Basic Materials Sector Average
JP:3880
Daio Paper Corporation
985.00
131.32
15.38%
JP:3864
Mitsubishi Paper Mills
1,193.00
528.39
79.50%
JP:3863
Nippon Paper
1,405.00
214.17
17.99%
JP:3861
Oji Holdings
876.60
107.70
14.01%
JP:3865
Hokuetsu Corporation
919.00
-75.41
-7.58%
JP:8032
Japan Pulp and Paper Co. Ltd.
1,215.00
543.44
80.92%
Daio Paper Corporation Corporate Events
Daio Paper Posts Higher Sales but Quarterly Loss, Keeps Dividend and Sees Profit Rebound
Aug 6, 2026
Daio Paper reported a 1.8% year-on-year increase in net sales to ¥161.2 billion for the quarter ended June 30, 2026, but operating profit fell 28.7% and the company booked a net loss attributable to owners of the parent, resulting in a negati...
Daio Paper to Liquidate Loss-Making Indonesian Diaper Subsidiaries
Jul 17, 2026
Daio Paper Corporation has decided to dissolve and liquidate its Indonesian subsidiaries PT. Elleair International Trading Indonesia and PT. Elleair International Manufacturing Indonesia. The units were established to tap rising demand for baby di...
Daio Paper Delays Completion of Subsidiary and Asset Transfer
Jul 1, 2026
Daio Paper Corporation reported that its planned transfer of part of its equity interest in consolidated subsidiary Forestal Anchile LTDA and warehouse real estate tied to its Kawasaki operations has been delayed. The transactions, initially expec...
Daio Paper Board Rejects Shareholder Push Into Data Center Business
May 26, 2026
Daio Paper’s board of directors has decided to oppose a series of shareholder proposals submitted by an individual investor ahead of the company’s 115th annual general meeting in June. The proposals sought to amend the articles of inco...
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.