Toray Industries (JP:3402)
:3402
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Toray Industries
(3402)
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Rating:58Neutral
Price Target:
¥1,169.00
▲(5.74% Upside)
Action:ReiteratedDate:02/18/26
Overall score reflects moderate financial performance constrained by weak and deteriorating free cash flow and low net profitability, partially offset by strong technical uptrend signals. Valuation is a key drag due to the high P/E and only modest dividend yield.
Positive Factors
Diversified materials portfolio
Toray's broad materials portfolio across fibers, plastics, carbon-fiber composites and membranes reduces dependence on any single end market. This diversification supports more resilient revenue streams and exposure to structural secular markets (aerospace, automotive, water) over the medium term.
Negative Factors
Sharp free-cash-flow deterioration
A ~54.9% drop in FCF and FCF at only ~21% of net income signals poor cash conversion. Persistent weak FCF reduces the firm's ability to self-fund capex, deleverage, or sustain shareholder returns, constraining strategic options if investment or financing needs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified materials portfolio
Toray's broad materials portfolio across fibers, plastics, carbon-fiber composites and membranes reduces dependence on any single end market. This diversification supports more resilient revenue streams and exposure to structural secular markets (aerospace, automotive, water) over the medium term.
Read all positive factors
Toray Industries (3402) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.73T
Dividend Yield1.85%
Average Volume (3M)4.93M
Price to Earnings (P/E)117.2
Beta (1Y)0.87
Revenue Growth-2.18%
EPS Growth26.45%
CountryJP
Employees48,140
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)2.30
Shares Outstanding1,504,481,400
10 Day Avg. Volume6,748,400
30 Day Avg. Volume4,930,880
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.95
Price to Sales (P/S)0.63
P/FCF Ratio21.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,401.43Price Target Upside26.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)72.05
Revenue Forecast (FY)¥2.70T
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 and related products to business customers (B2B) across multiple end markets. Key revenue streams include: (1) Fibers & Textiles: sales of synthetic fibers and textile-related mate...
Toray Industries Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 08, 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.
Read all updates
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
62
Positive
Balance Sheet
66
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.56T | 2.56T | 2.46T | 2.49T | 2.23T | 1.88T |
| Gross Profit | 508.59B | 505.89B | 443.52B | 420.83B | 435.97B | 377.50B |
| EBITDA | 264.00B | 268.88B | 226.37B | 216.30B | 250.58B | 206.34B |
| Net Income | 42.90B | 77.91B | 21.90B | 72.82B | 84.23B | 45.79B |
Balance Sheet | ||||||
| Total Assets | 3.52T | 3.29T | 3.47T | 3.19T | 3.04T | 2.85T |
| Cash, Cash Equivalents and Short-Term Investments | 245.56B | 237.29B | 235.89B | 224.00B | 229.30B | 236.35B |
| Total Debt | 985.11B | 842.66B | 949.68B | 950.09B | 935.66B | 973.93B |
| Total Liabilities | 1.63T | 1.47T | 1.62T | 1.56T | 1.54T | 1.53T |
| Stockholders Equity | 1.76T | 1.71T | 1.74T | 1.54T | 1.41T | 1.24T |
Cash Flow | ||||||
| Free Cash Flow | 21.98B | 75.78B | 51.55B | 43.00B | 46.09B | 89.11B |
| Operating Cash Flow | 184.26B | 255.03B | 185.68B | 145.21B | 138.29B | 211.59B |
| Investing Cash Flow | -66.65B | -63.20B | -121.00B | -102.72B | -57.17B | -97.87B |
| Financing Cash Flow | -112.24B | -188.52B | -70.37B | -57.38B | -101.52B | -69.40B |
Toray Industries Technical Analysis
Positive
1105.50
Price Trends
1179.39
Negative
1106.46
Positive
1034.32
Positive
Market Momentum
-2.50
Negative
55.98
Neutral
87.67
Negative
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 1105.5 is below the 20-day moving average (MA) of 1116.29, below the 50-day MA of 1179.39, and above the 200-day MA of 1034.32, indicating a neutral trend. The MACD of -2.50 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 87.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥140.61B | 15.30 | ― | 1.79% | 10.76% | 54.82% | |
78 Outperform | ¥173.29B | 9.78 | 10.24% | 2.43% | 6.08% | 8.55% | |
77 Outperform | ¥998.68B | 3.29 | 27.58% | 0.99% | 9.49% | 55.64% | |
72 Outperform | ¥13.32B | 4.54 | ― | 4.80% | 4.49% | 26.84% | |
66 Neutral | ¥116.91B | 17.53 | 2.80% | 3.38% | >-0.01% | -49.83% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥1.73T | 117.21 | 3.37% | 1.85% | -2.18% | 26.45% |
* Consumer Cyclical Sector Average
JP:3402
Toray Industries
1,175.50
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Toray Industries Corporate Events
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...
Toray Industries Revamps Top Leadership, Elevates Tsunekawa as Representative Director
Feb 10, 2026
Toray Industries has announced changes to its top management, with the Board of Directors resolving to alter the roster of representative members. Executive Vice President and Member of the Board Tetsuya Tsunekawa will become a representative memb...
Toray Releases 3Q and Nine-Month Results, Updates FY2025 Outlook
Feb 10, 2026
Toray Industries has released its consolidated business results for the third quarter and nine-month period ended December 31, 2025. The disclosure also includes a consolidated business forecast for the fiscal year ending March 2026, providing inv...
Toray Profit Slumps Despite Stable Revenue as Outlook Turns Cautiously Upbeat
Feb 10, 2026
Toray Industries reported nine-month revenue to December 31, 2025 of ¥1.92 trillion, essentially flat year on year, with core operating income down 3.4% and operating income dropping 31.6%, leading to a 46.6% decline in profit attributable to...
Toray to Record ¥25 Billion Impairment on Battery Separator Films Amid Weak EV Demand
Feb 5, 2026
Toray Industries will book a ¥25.0 billion impairment loss at a Korean subsidiary for the nine months ended December 31, 2025, after reassessing the recoverability of fixed assets in its battery separator films business. The writedown reflect...
Toray Advances Share Buyback, Repurchasing Over 27 Million Shares to Date
Feb 3, 2026
Toray Industries has continued executing its share repurchase program, buying back 11,010,400 shares of common stock on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total outlay of about ¥12.2 billion. This brings th...
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.