Toyobo Co (3101) AI Stock Analysis

• Market Cap: ¥123.03B
• Dividend Yield: 3.21%
• Average Volume (3M): 305.73K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.91
• 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: 62 Neutral
• Price Target: ¥1,569.00 ▲(23.06% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily held back by financial performance: very low net profitability, weak ROE, and negative free cash flow despite steady revenue growth and a healthy gross margin. Technicals are mixed with near-term softness but a still-positive longer-term trend. Valuation is a relative support due to a reasonable P/E and moderate dividend yield.

Positive Factors

Solid gross margin

A near-23% gross margin indicates durable production economics and pricing power in specialty materials. This margin provides a structural buffer against raw-material swings, supports reinvestment in process/R&D, and sustains higher-margin product focus over the medium term.

Stable revenue trend

Consistent year-over-year revenue growth reflects steady end-market demand and successful retention/qualification in industrial customers. This stability supports predictable cash flows and planning, important for multi-month investment cycles and maintaining manufacturing utilization.

Diverse, high-value end markets

Exposure to packaging, industrial, and life-science/biotech markets diversifies revenue and taps structural demand in consumables and regulated workflows. High-spec materials and qualification cycles raise switching costs and enable recurring sales, supporting long-term customer relationships.

Negative Factors

Very low net profitability

A net margin under 1% signals persistent pressure on the bottom line and little earnings buffer. Over months, this limits internal funding for growth, reduces capacity to absorb input-cost shocks, and constrains returns to shareholders absent operational improvement.

Negative free cash flow

Sustained negative free cash flow from elevated capex undermines financial flexibility. Over a multi-month horizon, this forces prioritization of projects, increases reliance on external financing, and can restrict dividends or strategic investments if operating cash generation doesn't improve.

Weak return on equity

ROE around 1% indicates the business is generating minimal returns on invested equity. Structurally low ROE suggests either low profitability or inefficient capital deployment, making it harder to grow shareholder value over the medium term without material operational gains.

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 makes money primarily by manufacturing and selling materials and intermediate products to industrial customers. Key revenue streams include: (1) Functional materials and polymers: sales of specialty polymers/resins, related chemical materials, and value-added compounds supplied to manufacturers that incorporate these inputs into downstream products; revenue is generated through volume-based product sales, often with pricing tied to specifications, performance characteristics, and (where applicable) raw-material cost pass-through mechanisms. (2) Films, fibers, and industrial materials: sales of functional films and fiber/engineering-material products used in packaging and industrial applications; earnings are driven by supplying differentiated materials (e.g., durability, barrier/functional performance) that command higher margins than commodity materials, supported by long-term customer relationships and qualification cycles. (3) Life science–related products and solutions: revenue from supplying products used in life science and biotech workflows; this typically includes recurring sales to laboratories and industrial users where consumables and repeat orders contribute to ongoing revenue. Across segments, the company’s profitability is influenced by product mix (specialty vs. commodity), customer qualification/approval processes that can increase switching costs, manufacturing utilization rates, and input-cost and energy-price dynamics. Specific details on major partnerships or customer concentrations: null.

Toyobo Co Financial Statement Overview

Summary

Stable revenue growth (+1.87%) and a solid gross margin (22.99%) are positives, but profitability is very thin (net margin 0.47%) and shareholder returns are weak (ROE 1.03%). Cash flow is a key drag due to negative free cash flow driven by high capital expenditures.

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	85.11B	96.21B	90.46B
EBITDA	42.09B	39.35B	28.80B	29.11B	48.51B	45.75B
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	267.87B	249.25B	229.41B	191.25B	186.96B
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	-35.74B	-32.18B	-12.57B	6.90B
Operating Cash Flow	0.00	28.62B	20.89B	6.98B	16.54B	34.40B
Investing Cash Flow	0.00	-47.01B	-59.41B	-6.52B	-25.28B	-32.30B
Financing Cash Flow	0.00	12.61B	9.59B	32.62B	-504.00M	6.59B

Toyobo Co Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3101, the sentiment is Neutral. The current price of 1275 is below the 20-day moving average (MA) of 1569.65, below the 50-day MA of 1469.86, and above the 200-day MA of 1184.50, indicating a neutral trend. The MACD of -23.33 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 12.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$359.37B	5.46	9.34%	4.27%	-0.48%	-35.29%
7970	74 Outperform	¥163.59B	14.73	―	2.84%	6.06%	19.76%
4118	74 Outperform	¥301.27B	9.05	5.47%	3.41%	2.60%	9.50%
6988	68 Neutral	$2.06T	17.01	11.98%	1.54%	1.84%	-6.57%
3101	62 Neutral	¥123.03B	13.27	―	3.21%	-1.68%	1262.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3103	55 Neutral	¥85.91B	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.