Daio Paper Corporation (3880) AI Stock Analysis

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Daio Paper Corporation

(TSE/TYO:3880)

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Rating:52Neutral

Price Target:JPY 1,059.00▲(7.40% 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 RecoveryThe return to positive EBIT and EBITDA in 2026 indicates meaningful operational recovery after losses in 2023 and 2025. If maintained, improved operating earnings can strengthen internal funding, support necessary investment, and provide a more stable base for future performance.

Negative Factors

High LeveragePersistently high leverage leaves Daio Paper with limited balance-sheet flexibility and increases the importance of maintaining reliable operating cash flow. Large debt relative to equity can constrain investment choices and make the business more vulnerable when profitability weakens.

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

Market Cap: JPY 163.21B
Dividend Yield: 1.42%
Average Volume (3M): 285.38K
Price to Earnings (P/E): 20.4
Beta (1Y): 0.51
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...

Daio Paper Corporation Financial Statement Overview

Summary

Income statement and cash flow show a clear recovery in 2026 (positive EBIT/EBITDA and solid free cash flow), but net margins remain thin and results have been volatile across recent years. Balance sheet risk is elevated due to persistently high leverage (debt-to-equity ~1.9–2.0) and declining equity, limiting financial flexibility.

Income Statement

54Neutral

Balance Sheet

43Neutral

Cash Flow

58Neutral

Financial statement breakdown
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	34.64B	12.24B	29.20B	-72.84B	7.61B
Operating Cash Flow	0	57.30B	44.65B	59.30B	-26.23B	71.39B
Investing Cash Flow	0	-44.92B	-20.90B	-26.54B	-57.95B	-61.91B
Financing Cash Flow	0	-32.09B	-35.49B	-13.61B	96.44B	-51.12B

Daio Paper Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price986.00

Price Trends

50DMA972.95Positive

100DMA962.54Positive

200DMA983.70Positive

Market Momentum

MACD7.62Negative

RSI50.94Neutral

STOCH36.26Neutral

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 986.00 is above the 20-day moving average (MA) of 984.20, above the 50-day MA of 972.95, and above the 200-day MA of 983.70, indicating a bullish trend. The MACD of 7.62 indicates Negative momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.26 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8032	69Neutral	JPY 127.42B	17.83	―	3.39%	12.36%	175.55%
JP:3861	62Neutral	JPY 696.54B	13.11	5.21%	4.34%	3.44%	87.34%
JP:3865	62Neutral	JPY 127.85B	19.98	2.61%	3.18%	-5.23%	-55.21%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JP:3863	54Neutral	JPY 140.49B	8.71	3.20%	1.22%	4.09%	-7.89%
JP:3864	54Neutral	JPY 52.59B	9.84	5.78%	1.82%	-6.05%	82.63%
JP:3880	52Neutral	JPY 163.21B	20.36	3.48%	1.42%	1.33%	―

* Basic Materials Sector Average

Performance Comparison

JP:3880 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3880	Daio Paper Corporation	986.00	67.73	7.38%
JP:3864	Mitsubishi Paper Mills	1207.00	587.15	94.72%
JP:3863	Nippon Paper Industries Co	1226.00	135.78	12.45%
JP:3861	Oji Holdings Corp	830.20	63.20	8.24%
JP:3865	Hokuetsu Corporation	817.00	-4.72	-0.57%
JP:8032	Japan Pulp and Paper Co. Ltd.	1122.00	425.68	61.13%

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 basic...

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

Daio Paper Corporation AI Stock Analysis