Toray Industries (3402) AI Stock Analysis

• Market Cap: $1.67T
• Dividend Yield: 1.89%
• Average Volume (3M): 3.61M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.79
• Revenue Growth: -0.11%
• EPS Growth: 98.53%
• Country: JP
• Employees: 48,140
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.93
• Shares Outstanding: 1,631,481,300
• 10 Day Avg. Volume: 3,214,810
• 30 Day Avg. Volume: 3,605,163
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 8.94
• 1Y Price Target: $1,007.36
• Price Target Upside: 5.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ¥1,028.00 ▲(7.97% Upside)

The overall stock score of 66 reflects Toray Industries' strong financial performance, characterized by consistent revenue growth and improved profitability. However, the technical analysis indicates a bearish trend, which tempers the overall score. The valuation is moderate, with a reasonable P/E ratio and a modest dividend yield.

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 primarily through the manufacture and sale of advanced materials and products. Its core revenue streams include fibers & textiles, which cater to apparel, industrial, and medical markets; performance chemicals, which encompass resins, films, and electronic materials; and carbon fiber composite materials, which are increasingly in demand for applications in aerospace, automotive, and energy sectors. The company also earns from its life sciences division, which produces medical and pharmaceutical products. Strategic partnerships and joint ventures enhance its market reach and technology development, while continuous investment in research and development ensures a steady pipeline of innovative products. The company has a global presence, allowing it to capture a diverse range of markets and customer bases.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.56T	2.46T	2.49T	2.23T	1.88T
Gross Profit	505.89B	443.52B	420.83B	435.97B	377.50B
EBITDA	267.64B	197.91B	219.00B	252.43B	206.08B
Net Income	77.91B	21.90B	72.82B	84.23B	45.79B
Balance Sheet
Total Assets	3.29T	3.47T	3.19T	3.04T	2.85T
Cash, Cash Equivalents and Short-Term Investments	237.29B	235.89B	224.00B	237.13B	242.49B
Total Debt	842.66B	949.68B	950.09B	935.66B	973.93B
Total Liabilities	1.47T	1.62T	1.56T	1.54T	1.53T
Stockholders Equity	1.71T	1.74T	1.54T	1.41T	1.24T
Cash Flow
Free Cash Flow	75.78B	51.55B	43.00B	46.09B	89.11B
Operating Cash Flow	255.03B	185.68B	145.21B	138.29B	211.59B
Investing Cash Flow	-63.20B	-121.00B	-102.72B	-57.17B	-97.87B
Financing Cash Flow	-188.52B	-70.37B	-57.38B	-101.52B	-69.40B

Toray Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 952.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 952.1 is below the 20-day moving average (MA) of 1012.51, below the 50-day MA of 993.84, and below the 200-day MA of 972.53, indicating a bearish trend. The MACD of 8.35 indicates Positive momentum. The RSI at 36.28 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3402.

Toray Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3402	66 Neutral	$1.67T	21.26	3.98%	1.89%	-0.11%	98.53%
Sector *	61 Neutral	$16.54B	9.52	-9.03%	3.32%	1.52%	-24.21%
GUN	―	€713.44M	36.47	2.97%	―	―	―
NB5	―	€1.18B	14.96	10.73%	―	―	―
3104	77 Outperform	¥67.45B	14.12		2.13%	15.29%	87.17%
3201	74 Outperform	¥92.73B	11.41		2.83%	7.01%	11.28%
3109	66 Neutral	¥12.80B	14.58		4.92%	1.05%	5.07%

Toray Industries Corporate Events

Toray Industries Reports Decline in Q1 2025 Financials but Maintains Positive Year-End Outlook

Toray Industries reported a decline in its financial performance for the three months ending June 30, 2025, with revenue dropping by 6.6% and profit attributable to owners decreasing by 37.6% compared to the previous year. Despite the downturn, the company maintains its forecast for the fiscal year ending March 31, 2026, expecting a 4.2% increase in revenue and a 5.2% rise in profit attributable to owners, indicating a positive outlook for future growth.

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.

Toray Industries Announces Share Repurchase Update

Toray Industries, Inc. announced the repurchase of 8,224,300 shares of its common stock for a total price of 8,204,550,230 yen through market purchases on the Tokyo Stock Exchange from July 1 to July 31, 2025. This repurchase is part of a larger plan authorized by the Board of Directors to buy back up to 155,000,000 shares, reflecting the company’s strategy to enhance shareholder value and optimize its capital structure.

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.

Toray Industries Announces Treasury Share Disposal for Executive Incentive Plan

Toray Industries has announced the disposal of treasury shares as part of a restricted stock remuneration plan aimed at incentivizing its board members and other executives to enhance the company’s corporate value and align their interests with shareholders. The plan involves issuing or disposing of shares to eligible officers without monetary payment, with a transfer restriction period of up to 30 years, reflecting a long-term commitment to value sharing with stakeholders.

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.

Toray Industries Updates on Share Repurchase Program

Toray Industries, Inc. announced the status of its share repurchase program, having repurchased 7,142,700 shares for approximately 6.98 billion yen between June 1 and June 30, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 155 million shares, reflecting 9.67% of the total issued shares, with a total budget of up to 100 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

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.

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.