Toray Industries (JP:3402)
:3402
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Toray Industries
(3402)
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Rating:61Neutral
Price Target:
¥1,227.00
▲(10.99% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by improving profitability and a gradually de-risking balance sheet, but limited growth, modest ROE, and only moderate cash-flow efficiency constrain the financial outlook. Technically, the trend is positive versus moving averages, though momentum signals are mixed. Valuation is fair-to-slightly rich given the growth profile, with a modest dividend yield.
Positive Factors
Diversified advanced-materials portfolio
Toray's breadth across fibers, performance chemicals, carbon-fiber composites and environmental engineering gives durable exposure to multiple end markets (automotive, aerospace, electronics, water treatment). This reduces single-market cyclicality and supports long-term specialty-margin potential and cross-segment technology leverage.
Negative Factors
Modest top-line growth
Toray's sales trajectory shows only modest growth which constrains long-term earnings leverage and the ability to scale higher-margin businesses rapidly. Without stronger organic or acquisition-driven revenue expansion, margin improvements alone may not translate into meaningfully higher returns on capital over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified advanced-materials portfolio
Toray's breadth across fibers, performance chemicals, carbon-fiber composites and environmental engineering gives durable exposure to multiple end markets (automotive, aerospace, electronics, water treatment). This reduces single-market cyclicality and supports long-term specialty-margin potential and cross-segment technology leverage.
Read all positive factors
Toray Industries (3402) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.60T
Dividend Yield1.85%
Average Volume (3M)4.93M
Price to Earnings (P/E)10.4
Beta (1Y)0.89
Revenue Growth0.85%
EPS Growth8.37%
CountryJP
Employees48,140
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)52.84
Shares Outstanding1,504,481,400
10 Day Avg. Volume6,748,400
30 Day Avg. Volume4,930,880
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)0.92
Price to Sales (P/S)0.64
P/FCF Ratio25.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,387.14Price Target Upside25.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)71.3
Revenue Forecast (FY)¥2.74T
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, Chin...
How the Company Makes Money
Toray makes money primarily by manufacturing and selling materials, intermediates, and finished products to business customers across its operating segments. Key revenue streams typically include: (1) Fibers & Textiles: sales of synthetic fibers, ...
Toray Industries Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record high core operating income and significant revenue increases across key segments like Performance Chemicals and Carbon Fiber Composite Materials. However, challenges remain in asset management and specific segments like Life Science and Fibers & Textiles in Korea.Positive Updates
Record High Core Operating Income
Core operating income for the first 6 months reached JPY 79.1 billion, marking a 62.6% increase compared to the previous year and setting a record high.
Negative Updates
Decrease in Total Assets
Total assets decreased by JPY 100.7 billion from the end of the previous fiscal year due to decreases in trade and other receivables.
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Q2-2025 Updates
Positive
Negative
Record High Core Operating Income
Core operating income for the first 6 months reached JPY 79.1 billion, marking a 62.6% increase compared to the previous year and setting a record high.
Read all positive updates
Company Guidance
In the Q2 2025 earnings call for Toray Group, Masahiko Okamoto reported robust financial performance with consolidated revenue rising 7.9% to JPY 1,294.1 billion and core operating income soaring 62.6% to JPY 79.1 billion compared to the previous year. The company achieved a profit increase of 92.3% to JPY 55.5 billion. Notably, Toray has revised its fiscal year forecast upwards, now expecting revenue of JPY 2,590 billion, core operating income of JPY 145 billion, and profit of JPY 88 billion, based on an exchange rate assumption of JPY 140 to the U.S. dollar. Core segments such as Performance Chemicals saw significant gains, with core operating income in this segment surging 134.2% year-on-year. Toray also announced strategic initiatives including a share repurchase plan and a focus on capital efficiency, aiming to reduce cross-shareholdings by half from FY 2024 to 2026, utilizing proceeds for further buybacks.Toray Industries Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
64
Positive
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.59T | 2.56T | 2.46T | 2.49T | 2.23T |
| Gross Profit | 520.05B | 505.89B | 443.52B | 420.83B | 435.97B |
| EBITDA | 270.30B | 268.88B | 226.37B | 216.30B | 250.58B |
| Net Income | 79.52B | 77.91B | 21.90B | 72.82B | 84.23B |
Balance Sheet | |||||
| Total Assets | 3.48T | 3.29T | 3.47T | 3.19T | 3.04T |
| Cash, Cash Equivalents and Short-Term Investments | 265.30B | 237.29B | 235.89B | 224.00B | 229.30B |
| Total Debt | 905.56B | 842.66B | 949.68B | 950.09B | 935.66B |
| Total Liabilities | 1.55T | 1.47T | 1.62T | 1.56T | 1.54T |
| Stockholders Equity | 1.80T | 1.71T | 1.74T | 1.54T | 1.41T |
Cash Flow | |||||
| Free Cash Flow | 65.26B | 75.78B | 51.55B | 43.00B | 46.09B |
| Operating Cash Flow | 211.76B | 255.03B | 185.68B | 145.21B | 138.29B |
| Investing Cash Flow | -66.94B | -63.20B | -121.00B | -102.72B | -57.17B |
| Financing Cash Flow | -129.00B | -188.52B | -70.37B | -57.38B | -101.52B |
Toray Industries Technical Analysis
Neutral
1105.50
Price Trends
1125.79
Negative
1141.50
Negative
1055.41
Positive
Market Momentum
-13.52
Positive
40.70
Neutral
15.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3402, the sentiment is Neutral. The current price of 1105.5 is below the 20-day moving average (MA) of 1120.68, below the 50-day MA of 1125.79, and above the 200-day MA of 1055.41, indicating a neutral trend. The MACD of -13.52 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 15.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3402.
Toray Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥176.24B | 15.00 | 10.24% | 2.43% | 7.59% | 9.69% | |
77 Outperform | ¥148.90B | 22.38 | ― | 1.79% | 7.03% | 26.11% | |
69 Neutral | ¥921.50B | 16.33 | 27.58% | 0.99% | 8.43% | 225.40% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥1.60T | 10.41 | 3.37% | 1.85% | 0.85% | 8.37% | |
58 Neutral | ¥12.57B | 14.23 | ― | 4.80% | 13.99% | 3.21% | |
54 Neutral | ¥108.32B | -36.94 | 2.80% | 3.38% | -4.52% | -91.68% |
* Consumer Cyclical Sector Average
JP:3402
Toray Industries
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Toray Industries Corporate Events
Toray Industries Elevates Executive Vice President Kenichiro Miki to Representative Board Role
May 13, 2026
Toray Industries has announced a planned change in its top management, with Executive Vice President Kenichiro Miki set to become a Representative Member of the Board, pending approval at the June 24, 2026 annual shareholders’ meeting and su...
Toray Marks 100th Anniversary With Higher Dividend and Stronger Shareholder Returns
May 13, 2026
Toray Industries has announced a special 100th anniversary commemorative dividend, marking its centennial on April 16, 2026 and signaling appreciation to long-term shareholders. The company will add a ¥3 per share commemorative payment to the...
Toray outlines fiscal 2026 results and 2027 forecast timetable
May 13, 2026
Toray Industries announced its business results for the fiscal year ended March 2026 and released a consolidated business forecast for the fiscal year ending March 2027. While the release outlines the timing and structure of its financial disclosu...
Toray Delivers Modest FY2026 Growth and Raises Dividend Outlook
May 13, 2026
Toray Industries reported modest revenue growth of 0.9% to ¥2.59 trillion for the fiscal year ended March 31, 2026, with core operating income essentially flat and operating income down sharply amid weaker profitability. Profit attributable t...
Toray Subsidiary Suido Kiko Posts Sharp Profit Surge With Limited Group Impact
May 7, 2026
Toray Industries reported that its subsidiary Suido Kiko Kaisha, Ltd. posted a strong year-on-year improvement in non-consolidated results for the fiscal year ended March 31, 2026, with net sales rising 22.6% to ¥19.94 billion and operating p...
Toray Subsidiary Chori Posts Lower Sales but Higher Profit; Impact on Toray Seen as Limited
Apr 28, 2026
Toray Industries said its subsidiary Chori Co., Ltd. reported a year-on-year decline in non-consolidated net sales and operating profit for the fiscal year ended March 31, 2026, with sales down 3.8% to ¥152.2 billion and operating profit drop...
Toray Sets 2050 Sustainability Vision and 2028 Profitability Targets in New Growth Strategy
Mar 25, 2026
Toray Industries has unveiled a refreshed long-term vision, TORAY VISION 2050, outlining its ambition to help create a world of circular resources, regenerated nature, shared prosperity and healthier, more comfortable lives. Supporting this, the c...
Toray Completes ¥50 Billion Share Buyback Ahead of Schedule
Mar 13, 2026
Toray Industries has completed a share repurchase program authorized by its board in November 2025, buying back 7,691,100 common shares on the Tokyo Stock Exchange between March 1 and March 12, 2026, for a total of about ¥9.3 billion. This la...
Toray Advances Large-Scale Share Buyback Program, Repurchasing Over 37 Million Shares
Mar 3, 2026
Toray Industries has disclosed the latest status of its ongoing share repurchase program, reporting that it bought back 9,372,100 shares of common stock on the Tokyo Stock Exchange in February 2026 for a total of about 11.7 billion yen. These purc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.