Toray Industries (3402) AI Stock Analysis

• Market Cap: $1.62T
• Dividend Yield: 1.9%
• Average Volume (3M): 4.93M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.69
• Revenue Growth: -2.18%
• EPS Growth: 26.45%
• Country: JP
• Employees: 48,140
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 13.07
• Shares Outstanding: 1,631,481,300
• 10 Day Avg. Volume: 6,748,400
• 30 Day Avg. Volume: 4,930,880
• PEG Ratio: 0.08
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 21.35
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 9.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,036.00 ▲(3.55% Upside)

Toray Industries' overall stock score is driven primarily by its stable financial performance and positive technical indicators. The financial stability is offset by challenges in cash flow generation and a high P/E ratio, which suggests potential overvaluation. The technical analysis indicates bullish momentum, but caution is advised due to the high RSI. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Business Model Strength

Toray's diversified revenue streams across fibers, textiles, plastics, and carbon fiber materials provide resilience against sector-specific downturns, supporting long-term stability.

Market Position

Toray's strong market position in advanced materials and chemicals, supported by innovation, enhances its competitive edge and potential for sustained growth.

Balance Sheet Health

A moderate debt-to-equity ratio and solid equity base indicate financial stability, providing Toray with the flexibility to invest in growth opportunities.

Negative Factors

Revenue Growth Trends

Declining revenue growth may signal challenges in market expansion or competitive pressures, potentially impacting long-term earnings potential.

Cash Flow Generation

Weak cash flow generation can limit Toray's ability to fund new projects or return capital to shareholders, affecting future financial flexibility.

Profitability Challenges

Low ROE suggests inefficiencies in generating shareholder returns, which could hinder investor confidence and long-term value creation.

Toray Industries Business Overview & Revenue Model

Company Description

Toray Industries, Inc. (3402) is a multinational corporation based in Japan specializing in advanced materials and chemicals. The company operates through multiple sectors, including fiber and textiles, plastics and chemicals, carbon fiber composite materials, and pharmaceuticals and medical products. Toray is recognized for its innovative technologies and high-performance products, which cater to various industries such as automotive, aerospace, electronics, and healthcare.

How the Company Makes Money

Toray Industries generates revenue through a diversified model that encompasses several key streams. The primary source of income comes from the sale of fibers and textiles, including synthetic fibers used in apparel and industrial applications. Additionally, the company earns significant revenue from its plastics and chemicals segment, which produces engineering plastics and chemical products for various industries. The carbon fiber composite materials division is also a crucial revenue driver, particularly in aerospace and automotive sectors, where demand for lightweight and high-strength materials is increasing. Toray has formed strategic partnerships and collaborations with leading companies, enhancing its market reach and technological capabilities. Furthermore, investments in R&D enable Toray to innovate and maintain a competitive edge, contributing to its overall earnings. The company's comprehensive approach to sustainability and eco-friendly products also resonates with consumers, further solidifying its revenue base.

Toray Industries Financial Statement Overview

Summary

Toray Industries presents a mixed financial picture. The income statement reflects stable profitability despite recent revenue declines. The balance sheet is robust, with a moderate debt level and solid equity base. However, the cash flow statement indicates challenges in free cash flow generation, which could impact future financial flexibility. Overall, while the company is financially stable, it faces challenges in maintaining growth and cash flow generation.

Income Statement

Toray Industries shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, with a negative growth rate of -1.64%. However, the company maintains a stable gross profit margin of approximately 19.83% and a net profit margin of 2.70%. The EBIT and EBITDA margins are also healthy at 4.69% and 9.78%, respectively, indicating operational efficiency. Despite the recent revenue decline, the company has shown resilience in maintaining profitability.

Balance Sheet

The balance sheet of Toray Industries reflects a stable financial position. The debt-to-equity ratio is moderate at 0.54, suggesting a balanced approach to leveraging. The return on equity (ROE) is modest at 3.95%, indicating room for improvement in generating returns for shareholders. The equity ratio stands at 50.75%, showcasing a solid equity base relative to total assets. Overall, the company maintains a stable balance sheet with manageable debt levels.

Cash Flow

The cash flow statement reveals some challenges for Toray Industries. The free cash flow growth rate is negative at -23.66%, indicating a decline in free cash flow generation. The operating cash flow to net income ratio is 0.28, and the free cash flow to net income ratio is 0.23, suggesting that cash flow generation is not as strong as net income figures might imply. While the company is generating positive cash flow, the declining trend in free cash flow is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.52T	2.56T	2.46T	2.49T	2.23T	1.88T
Gross Profit	500.10B	505.89B	443.52B	420.83B	435.97B	377.50B
EBITDA	246.47B	267.64B	197.91B	242.65B	227.59B	176.45B
Net Income	68.20B	77.91B	21.90B	72.82B	84.23B	45.79B
Balance Sheet
Total Assets	3.30T	3.29T	3.47T	3.19T	3.04T	2.85T
Cash, Cash Equivalents and Short-Term Investments	228.61B	237.29B	235.89B	224.00B	229.30B	236.35B
Total Debt	904.32B	842.66B	949.68B	950.09B	935.66B	973.93B
Total Liabilities	1.51T	1.47T	1.62T	1.56T	1.54T	1.53T
Stockholders Equity	1.67T	1.71T	1.74T	1.54T	1.41T	1.24T
Cash Flow
Free Cash Flow	57.86B	75.78B	51.55B	43.00B	46.09B	89.11B
Operating Cash Flow	247.81B	255.03B	185.68B	145.21B	138.29B	211.59B
Investing Cash Flow	-77.30B	-63.20B	-121.00B	-102.72B	-57.17B	-97.87B
Financing Cash Flow	-172.73B	-188.52B	-70.37B	-57.38B	-101.52B	-69.40B

Toray Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1000.50
• 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:3402, the sentiment is Positive. The current price of 1000.5 is above the 20-day moving average (MA) of 986.12, above the 50-day MA of 966.00, and above the 200-day MA of 971.54, indicating a bullish trend. The MACD of 12.29 indicates Positive momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 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
3104	78 Outperform	¥82.31B	16.43	―	1.88%	10.76%	54.82%
3109	72 Outperform	¥12.77B	13.73	―	4.88%	4.49%	26.84%
3201	72 Outperform	¥103.64B	14.41	―	2.75%	7.56%	-17.12%
3110	70 Outperform	€314.20B	24.68	11.10%	0.85%	9.49%	55.64%
3002	66 Neutral	€124.67B	39.64	2.34%	3.47%	>-0.01%	-49.83%
3402	65 Neutral	$1.62T	26.46	3.37%	1.90%	-2.18%	26.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Toray Industries Corporate Events

Toray Industries Reports Decline in Half-Year Earnings

Toray Industries, Inc. is a Japanese multinational corporation primarily engaged in the manufacturing of fibers and textiles, performance chemicals, and carbon fiber composite materials, with a focus on sustainable growth and innovation.

Toray Industries to Repurchase and Cancel Shares to Boost Capital Efficiency

Toray Industries, Inc. has announced a strategic move to repurchase and cancel a significant portion of its common stock, aligning with its policy to enhance capital efficiency by reducing cross-shareholdings. This initiative, set to take place between November 2025 and May 2026, involves repurchasing up to 63 million shares and cancelling 127 million shares, aiming to optimize shareholder value and streamline its capital structure.

The most recent analyst rating on (JP:3402) stock is a Hold with a Yen1036.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Reports Decline in Financial Results but Plans Share Repurchase

Toray Industries reported a decline in its consolidated financial results for the six months ended September 30, 2025, with revenue dropping by 4.6% and profit attributable to owners decreasing by 32.5% compared to the previous year. Despite the decline, the company announced a slight increase in its annual dividend forecast and plans for a share repurchase, indicating a strategic effort to enhance shareholder value.

The most recent analyst rating on (JP:3402) stock is a Hold with a Yen1036.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Completes Share Repurchase Program

Toray Industries, Inc. has completed its share repurchase program, acquiring 3,056,500 shares at a total cost of 2,912,908,350 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 155,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3402) stock is a Hold with a Yen978.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Reports Progress on Share Repurchase Program

Toray Industries has announced the status of its share repurchase program, revealing that it has repurchased 7,688,000 shares of common stock for a total of 7,532,034,240 yen between September 1 and September 30, 2025. This move is part of a larger plan authorized by the Board of Directors to repurchase up to 155,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:3402) stock is a Hold with a Yen1058.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Announces Share Repurchase Update

Toray Industries, Inc. has announced the repurchase of 9,654,300 shares of its common stock, amounting to 9,574,715,330 yen, conducted through market purchases on the Tokyo Stock Exchange during August 2025. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 155 million shares, or 9.67% of total issued shares, by November 2025, reflecting the company’s focus on enhancing shareholder value.

The most recent analyst rating on (JP:3402) stock is a Hold with a Yen1072.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.

Toray Industries Finalizes Treasury Shares Disposal for Stock Remuneration

Toray Industries has completed the payment procedures for the disposal of 304,950 treasury shares as restricted stock remuneration, a decision made during its Board of Directors meeting in July 2025. This move, involving a total disposal value of approximately 296.99 million yen, is part of the company’s strategy to incentivize its board members, vice presidents, fellows, and directors, potentially impacting its corporate governance and shareholder value.

The most recent analyst rating on (JP:3402) stock is a Hold with a Yen980.00 price target. To see the full list of analyst forecasts on Toray Industries stock, see the JP:3402 Stock Forecast page.