Toyobo Co (3101) AI Stock Analysis

• Market Cap: ¥143.21B
• Dividend Yield: 3.21%
• Average Volume (3M): 305.73K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.87
• Revenue Growth: -1.68%
• EPS Growth: 1262.84%
• Country: JP
• Employees: 10,668
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 23.74
• Shares Outstanding: 89,048,790
• 10 Day Avg. Volume: 223,990
• 30 Day Avg. Volume: 305,730
• PEG Ratio: -2.24
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -5.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 97.37
• Revenue Forecast (FY): ¥427.46B

• Rating: 66 Neutral
• Price Target: ¥1,673.00 ▲(31.22% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weak profitability (0.47% net margin), low ROE (1.03%), and negative free cash flow. Offsetting these fundamentals, the stock shows solid technical momentum (positive MACD; trading above longer-term moving averages) and a reasonable valuation supported by a 2.58% dividend yield.

Positive Factors

Robust gross margin and production efficiency

A 22.99% gross margin signals durable production efficiency and pricing power in specialty materials. That margin buffer helps absorb raw-material swings, supports reinvestment in product development and capacity, and underpins longer-term margin sustainability tied to product mix and manufacturing know-how.

Diversified high-performance materials portfolio

A diversified mix across functional polymers, films/fibers and life-science products spreads end-market risk and creates multiple revenue streams. Long qualification cycles and recurring consumables in biotech raise customer stickiness and support durable demand and pricing for differentiated products.

Strong operating cash flow coverage of net income

High operating cash flow relative to accounting profit implies quality earnings and core cash-generation ability. This cash strength provides a runnable base to fund operations, capex or deleveraging over the medium term, improving resilience despite current free cash flow headwinds.

Negative Factors

Very thin net profitability

A 0.47% net margin severely limits retained earnings and the company's ability to build equity via profits. Persistently thin net profitability undermines long-term return on capital, constrains reinvestment capacity and leaves little buffer against demand or cost shocks.

Negative free cash flow and high capex pressure

Negative free cash flow erodes financial flexibility and increases reliance on external financing or asset sales to fund growth and dividends. Over months, sustained negative FCF can force spending cuts, delay strategic projects, or increase leverage, hampering long-term competitiveness.

Moderate leverage with weak shareholder returns

A D/E of 1.34 combined with ROE near 1% shows capital is not generating adequate returns while leverage raises fixed costs and refinancing risk. This mix reduces strategic flexibility and magnifies the challenge of improving shareholder returns over the medium term.

Toyobo Co Business Overview & Revenue Model

Company Description

Toyobo Co., Ltd. provides films and functional polymers, industrial materials, and healthcare and textile products worldwide. It offers industrial films, including PET films for liquid crystal display, optical, and other industrial use; and synthetic papers. The company also provides packaging films, such as PET, polyolefin, and nylon for food packaging, as well as heat-shrink PET films; functional polymers comprising engineering plastics, industrial adhesives, coatings, photo-sensitive printing plates, acrylate polymers, and electronic materials; rubber and coat processing; and pharmaceuticals intermediates. In addition, it offers functional fibers consisting of airbag fabrics; polyethylene and PBO fibers; functional filters for automobiles, indoor, and anti-pollution solvent adsorption materials and units; and fiber materials for automobile parts. Further, the company provides bio products, including enzymes for diagnostics, diagnostic systems, and reagents for research; artificial kidney hollow fibers; anti-clotting materials; seawater desalination modules; functional textiles for sports clothing, underwear, and uniforms; synthetic filaments; apparel under the Munsingwear brand; acrylic fibers under the Exlan brand; and acrylate fibers under the eks brand, as well as trades in textile products. Additionally, it operates as a contract manufacturer of injections. The company was founded in 1882 and is headquartered in Osaka, Japan.

How the Company Makes Money

Toyobo generates revenue through a multi-faceted business model that includes the production and sale of high-performance materials and specialty chemicals. Key revenue streams include the sale of textiles, engineering plastics, and films used in packaging and electronics. Additionally, the company's biotechnology division contributes to earnings through the development and commercialization of pharmaceutical products and medical devices. Strategic partnerships with other companies in sectors such as automotive and electronics further enhance revenue opportunities, allowing Toyobo to leverage its technological expertise and innovation in developing new products tailored to market demands.

Toyobo Co Financial Statement Overview

Summary

Revenue growth is steady (+1.87%) and gross margin is solid (22.99%), but profitability is very thin (net margin 0.47%) and shareholder returns are weak (ROE 1.03%). Cash flow is a constraint due to negative free cash flow despite strong operating cash flow coverage of net income.

Income Statement

Toyobo Co has shown a stable revenue growth trend with a 1.87% increase in the latest year. The gross profit margin is robust at 22.99%, indicating effective production cost management. However, net profit margin is low at 0.47%, suggesting pressures on profitability. EBIT and EBITDA margins are moderate, reflecting consistent operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 1.34, indicating a moderate level of leverage. The equity ratio is 31.61%, suggesting a balanced capital structure. Return on equity is low at 1.03%, highlighting challenges in generating returns from shareholders' equity.

Cash Flow

The company has a negative free cash flow, impacting its financial flexibility. Operating cash flow covers net income well, with a ratio of 14.29, but the free cash flow to net income ratio is negative, reflecting high capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	419.77B	422.03B	414.26B	399.92B	375.72B	337.41B
Gross Profit	99.15B	97.06B	88.00B	85.01B	96.13B	90.37B
EBITDA	33.87B	32.05B	26.75B	20.99B	36.09B	25.96B
Net Income	2.79B	2.00B	2.46B	-655.00M	12.87B	4.20B
Balance Sheet
Total Assets	611.51B	617.80B	606.99B	588.91B	517.77B	491.19B
Cash, Cash Equivalents and Short-Term Investments	30.79B	28.58B	33.80B	60.70B	27.18B	34.70B
Total Debt	265.12B	261.07B	242.09B	225.17B	187.69B	182.92B
Total Liabilities	382.86B	385.75B	376.90B	367.48B	320.63B	302.55B
Stockholders Equity	193.44B	195.31B	197.03B	189.59B	194.88B	185.73B
Cash Flow
Free Cash Flow	0.00	-16.60B	-35.03B	-31.36B	-12.02B	7.53B
Operating Cash Flow	0.00	28.62B	21.59B	7.80B	17.10B	35.03B
Investing Cash Flow	0.00	-46.39B	-58.78B	-36.01B	-24.61B	-31.68B
Financing Cash Flow	0.00	10.49B	8.26B	61.30B	-1.73B	5.34B

Toyobo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1275.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3101, the sentiment is Positive. The current price of 1275 is below the 20-day moving average (MA) of 1614.10, below the 50-day MA of 1435.02, and above the 200-day MA of 1158.73, indicating a neutral trend. The MACD of 66.85 indicates Positive momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3101.

Toyobo Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4202	80 Outperform	¥397.37B	5.46	9.34%	4.27%	-0.48%	-35.29%
7970	74 Outperform	¥170.80B	14.73	―	2.84%	6.06%	19.76%
4118	74 Outperform	¥313.92B	9.05	5.47%	3.41%	2.60%	9.50%
6988	68 Neutral	¥2.16T	17.01	11.98%	1.54%	1.84%	-6.57%
3101	66 Neutral	¥143.21B	13.27	―	3.21%	-1.68%	1262.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3103	60 Neutral	¥99.28B	0.29	―	―	4.22%	-21.68%

Toyobo Co Corporate Events

Toyobo Raises Full-Year Earnings Forecast on Strong Film Sales and FX Gains

Toyobo has revised upward its consolidated earnings forecasts for the fiscal year ending March 31, 2026, citing steady sales of mold releasing film for MLCCs and COSMOSHINE SRF polarizer protective films for LCDs. The company now projects net sales of ¥430 billion, operating profit of ¥24 billion, ordinary profit of ¥19.5 billion, and profit attributable to owners of parent of ¥8.5 billion, all above its prior guidance and significantly higher than fiscal 2025 results, supported in part by foreign exchange gains.

The revised outlook implies year-on-year growth from FY 2025, with net sales expected to rise from about ¥422 billion and profit attributable to owners of parent to more than four times last year’s level. This upgrade signals improved operating momentum in Toyobo’s high-value film businesses and suggests stronger earnings power for shareholders, as reflected in the sharp projected increase in net profit per share compared with the previous fiscal year.

The most recent analyst rating on (JP:3101) stock is a Hold with a Yen1537.00 price target. To see the full list of analyst forecasts on Toyobo Co stock, see the JP:3101 Stock Forecast page.

Toyobo Lifts Full-Year Profit Outlook on Strong Industrial Film Demand

Toyobo reported robust third-quarter results for the period ended December 31, 2025, with operating profit rising to ¥18.3 billion and net profit reaching ¥7.8 billion, supported by strong industrial film demand and improved profitability in packaging film. Building on this momentum, the company raised its full-year forecast, now targeting operating profit of ¥24.0 billion and net profit of ¥8.5 billion, reflecting broader earnings improvements across packaging film, pharmaceuticals and nonwoven materials and signaling stronger near-term performance for stakeholders.

These upgraded projections suggest Toyobo is consolidating its position in high-margin industrial and packaging film markets, with diversified contributions from related materials businesses. The improved outlook underscores the company’s operational leverage to demand in key material segments and may enhance its standing among investors focused on earnings growth and stability.

The most recent analyst rating on (JP:3101) stock is a Hold with a Yen1537.00 price target. To see the full list of analyst forecasts on Toyobo Co stock, see the JP:3101 Stock Forecast page.

Toyobo Lifts Profit Outlook as Earnings Surge Despite Slight Sales Dip

Toyobo reported consolidated net sales of ¥307.5 billion for the nine months ended December 31, 2025, down 2.1% year on year, but operating profit surged 79.6% to ¥18.3 billion and profit attributable to owners of parent jumped nearly tenfold to ¥7.8 billion, lifting net profit per share to ¥88.72. The stronger earnings, alongside an improved equity ratio of 33.0% and higher net assets, support the company’s plan to maintain a full-year dividend of ¥40 per share and an upgraded earnings forecast for fiscal 2026, targeting modest sales growth but sharply higher profits as management pushes margin improvement and financial discipline.

For the full year to March 31, 2026, Toyobo now projects net sales of ¥430 billion, up 1.9% from the previous year, with operating profit expected to rise 44.1% to ¥24 billion and ordinary profit by 84.1% to ¥19.5 billion. Profit attributable to owners of parent is forecast at ¥8.5 billion, a 324.3% increase, signaling a strong earnings recovery that, if achieved, would reinforce the company’s balance sheet and enhance returns to shareholders in the face of a still-challenging demand environment.

The most recent analyst rating on (JP:3101) stock is a Hold with a Yen1537.00 price target. To see the full list of analyst forecasts on Toyobo Co stock, see the JP:3101 Stock Forecast page.