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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Kodoshi Corp.

Tokushu Tokai Paper Co., Ltd.

Nippon Filcon Co., Ltd.

Rengo Co., Ltd.

Daio Paper Corp.

Mitsubishi Paper Mills Ltd.

Tomoegawa Corp.

Nichiban Co., Ltd.

Hokuetsu Corp.

Nippon Paper Industries Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

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 -20.37% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.54% signifying low profitability per unit of shareholders funds
RAW MATERIAL COST(Y) Fallen by -6.3% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 5.69%
NET PROFIT(Q) At JPY 121.58 MM has Grown at 108.29%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 6.33%, its profits have fallen by -87.5%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 6.33% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daio Paper Corp. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Daio Paper Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daio Paper Corp.

6.33%

0.19

25.34%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.13%

EBIT Growth (5y)

-20.37%

EBIT to Interest (avg)

3.53

Debt to EBITDA (avg)

6.68

Net Debt to Equity (avg)

1.40

Sales to Capital Employed (avg)

0.94

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.57%

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

141

Industry P/E

Price to Book Value

0.59

EV to EBIT

48.01

EV to EBITDA

8.08

EV to Capital Employed

0.83

EV to Sales

0.70

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

1.73%

ROE (Latest)

0.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.3% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.69%

NET PROFIT(Q)

At JPY 121.58 MM has Grown at 108.29%

EPS(Q)

Highest at JPY 2.01

-12What is not working for the Company

NET PROFIT(9M)

At JPY -1,502.07 MM has Grown at -325.5%

PRE-TAX PROFIT(Q)

At JPY 970 MM has Fallen at -55.45%

INTEREST(HY)

At JPY 3,106 MM has Grown at 8.11%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.4%

NET SALES(Q)

Lowest at JPY 158,233 MM

OPERATING PROFIT(Q)

Lowest at JPY 13,642 MM

Here's what is working for Daio Paper Corp.

Net Profit

At JPY 121.58 MM has Grown at 108.29%

over average net sales of the previous four periods of JPY -1,466.38 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 2.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Highest at 5.69%

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 -6.3% (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 970 MM has Fallen at -55.45%

over average net sales of the previous four periods of JPY 2,177.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 3,106 MM has Grown at 8.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 158,233 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 13,642 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 4.4%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio