Daio Paper Corporation (3880) AI Stock Analysis

• Market Cap: €150.43B
• Dividend Yield: 1.6%
• Average Volume (3M): 394.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 0.16%
• EPS Growth: 56.24%
• Country: JP
• Employees: 12,372
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -22.77
• Shares Outstanding: 169,012,920
• 10 Day Avg. Volume: 214,170
• 30 Day Avg. Volume: 394,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: €893.76
• Price Target Upside: 0.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Daio Paper Corporation faces significant challenges in profitability and cash flow management, with high debt levels being a major concern. Despite strong technical momentum, the overbought conditions and unattractive valuation suggest caution. Improvements in financial stability and operational efficiency are critical for enhancing the stock's prospects.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
671.69B	646.21B	612.31B	562.93B	546.43B
	Gross Profit
143.22B	110.20B	161.67B	159.58B	140.31B
	EBIT
14.37B	-21.44B	37.57B	36.87B	30.63B
	EBITDA
66.27B	14.06B	79.83B	75.39B	66.03B
	Net Income Common Stockholders
4.51B	-34.70B	23.72B	22.11B	19.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
124.02B	102.64B	89.17B	130.64B	113.05B
	Total Assets
939.49B	923.53B	840.44B	849.80B	763.06B
	Total Debt
474.83B	481.66B	378.64B	422.58B	394.12B
	Net Debt
350.81B	379.02B	289.48B	291.94B	281.06B
	Total Liabilities
679.66B	678.86B	573.74B	603.01B	553.52B
	Stockholders Equity
247.41B	235.12B	259.09B	239.23B	199.13B
Cash Flow		Free Cash Flow
28.09B	-75.43B	4.29B	6.18B	12.19B
	Operating Cash Flow
59.30B	-26.23B	71.39B	64.21B	68.01B
	Investing Cash Flow
-26.54B	-57.95B	-62.42B	-103.70B	-47.87B
	Financing Cash Flow
-13.61B	96.44B	-50.61B	63.59B	-14.05B

Daio Paper Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 887.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 887 is above the 20-day moving average (MA) of 859.90, above the 50-day MA of 845.25, and above the 200-day MA of 845.10, indicating a bullish trend. The MACD of 22.75 indicates Negative momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 31.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	75 Outperform	¥60.78B	9.59		3.69%	3.83%	12.47%
3946	64 Neutral	¥40.44B	6.86		3.99%	4.46%	15.35%
3880	50 Neutral	€150.43B	―	-1.51%	1.60%	0.16%	56.24%
Sector *	49 Neutral	$1.95B	-1.21	-21.28%	3.72%	1.18%	-30.47%

Daio Paper Corporation Corporate Events

Daio Paper Corporation Transfers Turkish Subsidiary to Evyap Holding Amid Strategic Reforms

Daio Paper Corporation has decided to transfer all shares of its wholly-owned subsidiary, Elleair International Turkey, to Evyap Holding due to unforeseen changes in the business environment, such as the COVID-19 pandemic, the Russia-Ukraine conflict, and increased competition in Turkey. This strategic move is part of Daio’s broader efforts to reform its Home & Personal Care overseas business, aiming to enhance cash flow and corporate value while improving its financial position.

Daio Paper Restructures Chinese Operations with Asset Transfer

Daio Paper Corporation has decided to transfer the fixed assets of its subsidiary’s Nantong West factory, which produces baby diapers, to Hangzhou Haoyue Industrial Co., Ltd. This move is part of a strategic restructuring to focus on the growing sanitary products market and improve financial performance. The transfer aims to enhance cost competitiveness and maintain the well-known ‘GOO.N’ diaper brand in China by outsourcing production. The company expects an extraordinary loss of approximately 4 billion yen due to this transfer, but it is seen as a step towards strengthening its business model and responding to local consumer needs.

Daio Paper Revises Financial Forecast, Lowers Dividend Amid Challenges

Daio Paper Corporation has revised its financial results forecast for the fiscal year ending March 31, 2025, noting a lower profit attributable to owners due to impairment losses in its Chinese operations. Consequently, the company has reduced its year-end dividend forecast, prioritizing shareholder returns while aiming to implement measures for business turnaround, such as cost reductions and asset sales.

Daio Paper Reports Decreased Profits and Revised Forecasts

Daio Paper Corporation reported a slight decrease in net sales by 0.3% to ¥502,290 million for the nine months ending December 31, 2024, with significant declines in operating profit by 38.6% and ordinary profit by 34.7%. The company revised its full-year financial results forecast, anticipating a 1.2% increase in net sales but a decrease in operating profit and ordinary profit due to various market challenges. Stakeholders should note the company’s adjusted dividend forecasts, reflecting the current financial position and strategic adjustments.

Daio Paper Transitions to Enhance Corporate Governance

Daio Paper Corporation has announced its transition to a ‘Company with an Audit & Supervisory Committee’, aiming to enhance corporate governance and accelerate decision-making. This strategic move will include an increase in independent directors to improve transparency, alongside the introduction of a delegated executive officer system to strengthen business execution, potentially impacting the company’s operational efficiency and stakeholder trust.