Toray Industries (3402) AI Stock Analysis

• Market Cap: $1.57T
• Dividend Yield: 1.84%
• Average Volume (3M): 4.56M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.80
• Revenue Growth: 4.00%
• EPS Growth: 256.52%
• Country: JP
• Employees: 48,140
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Manufacturers
• EPS (TTM): 12.34
• Shares Outstanding: 1,631,481,300
• 10 Day Avg. Volume: 4,323,870
• 30 Day Avg. Volume: 4,557,836
• PEG Ratio: -1.40
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.80
• 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: $989.44
• Price Target Upside: 1.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: ¥1,066.00 ▲(8.88%Upside)

Toray Industries' stock is supported by solid financial health, marked by consistent revenue growth and strong cash flows. While technical indicators suggest a neutral outlook, the valuation is reasonable within its industry. The absence of earnings call insights and notable corporate events limits additional context.

Toray Industries Business Overview & Revenue Model

Company Description

Toray Industries, Inc., together with its subsidiaries, manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products in Japan, China, North America, Europe, and internationally. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-fine fibers; and apparel products. It also provides nylon, ABS, PBT, PPS, and other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and other plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; and materials for housing, building, and civil engineering applications. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toray Industries generates revenue through a diversified portfolio of business segments. Its primary revenue streams include the sale of fibers and textiles, which serve the fashion, industrial, and functional apparel markets, and performance chemicals, which include resins, films, and chemicals used in packaging, electronics, and consumer products. The company also earns income from its carbon fiber composite materials used in the aerospace and automotive sectors, providing lightweight and high-strength materials. Additionally, Toray's environment and engineering segment focuses on water treatment solutions and engineering services, contributing to its revenue. The life science division, offering pharmaceuticals and medical products, is another important revenue stream. Strategic partnerships and joint ventures with other global companies enhance Toray's market reach and technological capabilities, further supporting its financial performance.

Toray Industries Financial Statement Overview

Summary

Toray Industries exhibits solid financial health with consistent revenue growth, improved profitability, and strong cash flows. The company’s balanced debt levels and improving return on equity suggest sound financial management. While the gross profit margin remains stable, further improvements in operational efficiency could enhance profitability.

Income Statement

Toray Industries has shown consistent revenue growth over the years, with a notable year-over-year increase of 4.0% in 2025. Gross profit margin has remained stable, although there has been a slight decline from 19.6% in 2024 to 19.7% in 2025. The net profit margin improved significantly from 0.9% in 2024 to 3.0% in 2025, indicating better cost management and operational efficiency.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.49, highlighting a manageable level of leverage. The equity ratio stood at 51.9%, reflecting a solid capital structure. ROE improved notably to 4.6% in 2025 from 1.3% in 2024, driven by increased profitability.

Cash Flow

Toray Industries' free cash flow grew by 47.0% in 2025, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 3.27 indicates robust cash flow relative to earnings. The free cash flow to net income ratio of 0.97 shows efficient cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.36T	2.56T	2.46T	2.49T	2.23T	1.88T
Gross Profit	457.85B	505.89B	443.52B	420.83B	435.97B	377.50B
EBITDA	209.63B	267.64B	197.91B	219.00B	252.43B	206.08B
Net Income	99.62B	77.91B	21.90B	72.82B	84.23B	45.79B
Balance Sheet
Total Assets	3.51T	3.29T	3.47T	3.19T	3.04T	2.85T
Cash, Cash Equivalents and Short-Term Investments	239.38B	237.29B	235.89B	224.00B	237.13B	242.49B
Total Debt	925.82B	842.66B	949.68B	950.09B	935.66B	973.93B
Total Liabilities	1.59T	1.47T	1.62T	1.56T	1.54T	1.53T
Stockholders Equity	1.80T	1.71T	1.74T	1.54T	1.41T	1.24T
Cash Flow
Free Cash Flow	0.00	75.78B	51.55B	43.00B	46.09B	89.11B
Operating Cash Flow	0.00	255.03B	185.68B	145.21B	138.29B	211.59B
Investing Cash Flow	0.00	-63.20B	-121.00B	-102.72B	-57.17B	-97.87B
Financing Cash Flow	0.00	-188.52B	-70.37B	-57.38B	-101.52B	-69.40B

Toray Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 979.10
• 50DMA: Positive
• 100DMA: Negative
• 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:3402, the sentiment is Positive. The current price of 979.1 is above the 20-day moving average (MA) of 977.11, above the 50-day MA of 960.45, and above the 200-day MA of 941.01, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 67.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3402.

Toray Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3402	71 Outperform	$1.57T	20.01	4.47%	1.84%	4.00%	256.52%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
GUN		€686.33M	18.12	5.24%	2.20%	―	―
NB5		€1.30B	16.34	10.29%	2.71%	―	―
3104	77 Outperform	¥65.23B	14.49		2.38%	18.84%	113.24%
3201	74 Outperform	¥91.97B	11.35		339.67%	5.77%	11.61%
3109	66 Neutral	¥12.11B	13.43		5.11%	1.05%	5.06%

Toray Industries Corporate Events

Toray Industries Updates on Share Repurchase Program

Toray Industries announced the status of its share repurchase program, revealing that it repurchased 10,583,000 shares for a total of 10,139,233,634 yen between May 1 and May 31, 2025. This move is part of a larger initiative authorized by the Board of Directors to repurchase up to 155,000,000 shares by November 7, 2025, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3402) stock is a Buy with a Yen1270.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Reports Special Gain from Investment Securities Sale

Toray Industries has announced a special gain of 86.2 billion yen in its non-consolidated financial results due to the partial sale of investment securities. This move aligns with the company’s strategy to enhance capital efficiency by reducing cross-shareholdings and using the proceeds for share repurchases, with no impact on consolidated profit or loss under IFRS.

The most recent analyst rating on (JP:3402) stock is a Buy with a Yen1270.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Reports Strong Financial Performance for FY 2025

Toray Industries reported a significant improvement in its consolidated financial results for the fiscal year ended March 31, 2025, with a 4% increase in revenue and a notable rise in operating income and profit before tax. The company’s strong performance reflects its strategic initiatives and operational efficiencies, positioning it favorably within its industry and providing positive implications for its stakeholders.

The most recent analyst rating on (JP:3402) stock is a Buy with a Yen1270.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Revises Board Remuneration and Introduces New Stock Plan

Toray Industries has announced a revision in its remuneration system for board members and corporate auditors, aiming to enhance the company’s long-term value and growth. The company plans to introduce a restricted stock remuneration plan to better align the interests of its board members with those of shareholders, replacing the current stock options system, and will seek shareholder approval for these changes at the upcoming general meeting.

The most recent analyst rating on (JP:3402) stock is a Buy with a Yen1270.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Subsidiary Reports Significant Financial Growth

Toray Industries announced a significant increase in the non-consolidated financial results of its subsidiary, Suido Kiko Kaisha, Ltd., for the fiscal year ending March 31, 2025, compared to the previous year. Despite the notable improvements in net sales and profits, the impact on Toray’s consolidated financial forecast remains negligible.

Toray Industries Announces Share Repurchase Update

Toray Industries, Inc. announced the repurchase of 17,800,100 shares of its common stock for a total of 16,294,746,861 yen through market purchases on the Tokyo Stock Exchange from April 1 to April 30, 2025. This move is part of a broader share repurchase program authorized by the Board of Directors, which allows for the repurchase of up to 155,000,000 shares, or 9.67% of the total issued shares, with a budget of up to 100 billion yen, aimed at enhancing shareholder value.

Toray Industries Reports Financial Variations in Subsidiary Chori Co., Ltd.

Toray Industries announced differences in the non-consolidated financial results of its subsidiary, Chori Co., Ltd., for the fiscal years ending March 31, 2025, and March 31, 2024. Despite a slight increase in net sales, there was a decrease in operating profit, while ordinary profit and net profit saw significant increases. The impact of these differences on Toray’s consolidated financial results is considered immaterial.

Toray Industries Reports Progress on Share Repurchase Program

Toray Industries, Inc. announced the status of its share repurchase program, revealing that it repurchased 6,244,300 shares of common stock for a total of 6,487,470,862 yen between March 1 and March 31, 2025, through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan approved by the Board of Directors to repurchase up to 155,000,000 shares, or 9.67% of the total issued shares, for up to 100 billion yen by November 7, 2025, potentially impacting the company’s stock value and shareholder returns.