Daio Paper Corp. (3880) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Kodoshi Corp.

Mitsubishi Paper Mills Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Tomoegawa Corp.

Rengo Co., Ltd.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Nichiban Co., Ltd.

Nippon Paper Industries Co., Ltd.

Hokuetsu Corp.

Daio Paper Corp.

Why is Daio Paper Corp. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -10.20% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.54% signifying low profitability per unit of shareholders funds

Negative results in Jun 26

INTEREST(HY) At JPY 3,503 MM has Grown at 12.78%
PRE-TAX PROFIT(Q) At JPY 2,421 MM has Fallen at -58.41%
INTEREST COVERAGE RATIO(Q) Lowest at 793.22

With ROE of 5.96%, it has a fair valuation with a 0.67 Price to Book Value

Over the past year, while the stock has generated a return of 13.92%, its profits have risen by 5266.9%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 13.92% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Daio Paper Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daio Paper Corp.

19.13%

0.60

27.93%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.50%

EBIT Growth (5y)

-10.20%

EBIT to Interest (avg)

2.56

Debt to EBITDA (avg)

6.85

Net Debt to Equity (avg)

1.41

Sales to Capital Employed (avg)

0.97

Tax Ratio

49.92%

Dividend Payout Ratio

26.06%

Pledged Shares

Institutional Holding

ROCE (avg)

3.04%

ROE (avg)

4.54%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.67

EV to EBIT

22.43

EV to EBITDA

6.92

EV to Capital Employed

0.86

EV to Sales

0.72

PEG Ratio

Dividend Yield

ROCE (Latest)

3.82%

ROE (Latest)

5.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 3.54%

RAW MATERIAL COST(Y)

Fallen by 0.28% (YoY

NET PROFIT(9M)

Higher at JPY 5,275.71 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.26 times

-22What is not working for the Company

INTEREST(HY)

At JPY 3,503 MM has Grown at 12.78%

PRE-TAX PROFIT(Q)

At JPY 2,421 MM has Fallen at -58.41%

INTEREST COVERAGE RATIO(Q)

Lowest at 793.22

OPERATING PROFIT(Q)

Lowest at JPY 13,580 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.43 %

NET PROFIT(Q)

Lowest at JPY -424.02 MM

EPS(Q)

Lowest at JPY -3

Here's what is working for Daio Paper Corp.

Debtors Turnover Ratio

Highest at 6.26 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Daio Paper Corp.

Pre-Tax Profit

At JPY 2,421 MM has Fallen at -58.41%

over average net sales of the previous four periods of JPY 5,821.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -424.02 MM has Fallen at -117.54%

over average net sales of the previous four periods of JPY 2,417.3 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 3,503 MM has Grown at 12.78%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 793.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at JPY 13,580 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY -424.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -3

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 2.76 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income