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Daio Paper Corporation (3880) AI Stock Analysis

JP:3880

Daio Paper Corporation

(TSE/TYO:3880)

Select Model
Rating:47Neutral
Price Target:JPY 958.00â–¼(-3.43% Downside)
Action:reiterated
Date:08/17/26

The overall score of 47 reflects a below-average investment prospect. The primary concern is weak financial performance, characterized by thin margins and high debt, despite recent improvements in cash flow. Technical indicators are mixed but slightly positive, while valuation appears somewhat stretched. Investors should monitor the company's ability to reduce leverage and sustain profitability.

Positive Factors
Profitability RecoveryThe 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 LeveragePersistently 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.

Daio Paper Corporation (3880) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:3880+21.03%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 162.88B
Dividend Yield
1.43%
Average Volume (3M)
268.81K
Price to Earnings (P/E)
20.3
Beta (1Y)
0.53
Revenue Growth
1.33%
EPS Growth
―
Country
Japan
Employees
11,639
Sector
Basic Materials
Sector Strength
61
Industry
Paper, Lumber & Forest Products

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 seg...

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-label...

Daio Paper Corporation Financial Statement Overview

Summary

Combined score based on Income Statement (42), Balance Sheet (38), and Cash Flow (52). The company shows thin and volatile profitability, high leverage, but improving cash generation. Overall financial health is weak.

Income Statement

42Neutral

Balance Sheet

38Negative

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue669.70B666.77B668.91B671.69B646.21B612.31B
Gross Profit159.45B158.89B144.02B143.22B110.20B161.67B
EBITDA73.49B74.78B52.35B66.27B14.06B83.04B
Net Income8.09B8.89B-11.20B4.47B-34.71B23.72B
Balance Sheet
Total Assets856.62B853.93B886.07B939.75B923.53B840.44B
Cash, Cash Equivalents and Short-Term Investments105.51B96.03B113.19B124.02B102.64B89.17B
Total Debt404.89B440.82B455.41B485.63B490.30B380.36B
Total Liabilities610.53B611.17B636.35B679.65B678.86B573.73B
Stockholders Equity228.76B226.91B236.72B247.66B235.12B259.09B
Cash Flow
Free Cash Flow034.64B12.24B29.20B-72.84B7.61B
Operating Cash Flow057.30B44.65B59.30B-26.23B71.39B
Investing Cash Flow0-44.92B-20.90B-26.54B-57.95B-61.91B
Financing Cash Flow0-32.09B-35.49B-13.61B96.44B-51.12B

Daio Paper Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price992.00

Price Trends

50DMA968.77Positive
100DMA956.78Positive
200DMA982.55Negative

Market Momentum

MACD2.09Negative
RSI54.61Neutral
STOCH28.80Neutral

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 992.00 is above the 20-day moving average (MA) of 962.05, above the 50-day MA of 968.77, and above the 200-day MA of 982.55, indicating a neutral trend. The MACD of 2.09 indicates Negative momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.80 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3880 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8032JP:803269NeutralJPY 159.47B29.88―2.74%9.61%-3.44%
JP:3861JP:386162NeutralJPY 694.50B11.545.99%4.40%0.22%208.36%
JP:3865JP:386562NeutralJPY 132.28B20.452.61%3.11%-5.23%-55.21%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:3863JP:386358NeutralJPY 148.11B15.421.94%1.17%2.22%27.47%
JP:3864JP:386454NeutralJPY 54.59B10.015.78%1.79%-8.09%76.25%
JP:3880JP:388047NeutralJPY 162.88B20.263.48%1.43%1.33%―

* Basic Materials Sector Average

Performance Comparison

0%25%50%75%100%JP:3880JP:3864JP:3863JP:3861JP:3865JP:8032Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3880 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3880Daio Paper Corporation992.00174.3321.32%
JP:3864Mitsubishi Paper Mills 1211.00622.39105.74%
JP:3863Nippon Paper Industries Co1270.00134.3111.83%
JP:3861Oji Holdings Corp821.4077.4110.41%
JP:3865Hokuetsu Corporation835.0014.251.74%
JP:8032Japan Pulp and Paper Co. Ltd.1338.00634.9190.30%

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 negative...

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 diape...

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 expected...

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 incorpo...

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.

Date of analysis: Aug 17, 2026