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Toray Industries Inc (TRYIY)
OTHER OTC:TRYIY
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Toray Industries
(OTC:TRYIY)
Rating:69Neutral
Price Target:
$15.00
▲(8.85%Upside)
Toray Industries (TRYIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.11B
Dividend Yield0.09%
Average Volume (3M)1.82K
Price to Earnings (P/E)21.7
Beta (1Y)0.38
Revenue Growth-1.29%
EPS Growth224.05%
CountryUS
Employees48,140
SectorConsumer Cyclical
Sector Strength64
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.16
Shares Outstanding815,740,700
10 Day Avg. Volume1,007
30 Day Avg. Volume1,820
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.92
Price to Sales (P/S)0.00
P/FCF Ratio20.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Toray Industries Business Overview & Revenue Model
Company DescriptionToray Industries, Inc. (TRYIY) is a multinational corporation headquartered in Tokyo, Japan, primarily engaged in the development and manufacturing of advanced materials and technologies. The company operates across several sectors, including fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering, life sciences, and other businesses. Toray Industries is known for its innovative solutions that cater to various industries such as automotive, aerospace, electronics, and healthcare.
How the Company Makes MoneyToray Industries generates revenue through the production and sale of high-performance materials and technology solutions across its diverse business segments. The fibers and textiles segment contributes significantly to the company's earnings by providing materials for clothing, industrial applications, and home textiles. The performance chemicals segment involves the manufacture of resins, films, and other chemical products used in electronics, packaging, and construction. Carbon fiber composite materials are another key revenue stream, particularly in the aerospace and automotive sectors, where they are used for lightweight and durable components. Additionally, Toray's environment and engineering segment focuses on water treatment technologies and engineering services, while the life sciences division offers medical products and pharmaceuticals. The company's strategic partnerships and continuous investment in research and development also play crucial roles in enhancing its product offerings and expanding market presence, thereby contributing to its financial performance.
Toray Industries Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q2-2025)
| % Change Since: 4.79%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presents a strong financial performance with record high income and significant profit increases, alongside strategic initiatives in pricing and capital efficiency. However, challenges remain in asset values and specific segments like Life Science, with potential economic risks noted.Q2-2025 Updates
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 a record high for the period.
Significant Profit Increase
Profit increased by 92.3% to JPY 55.5 billion compared to the same period last year.
Revenue Growth Across Segments
Consolidated revenue for the 6 months increased by 7.9% to JPY 1,294.1 billion, with notable growth in the Performance Chemicals (10.3% increase) and Carbon Fiber Composite Materials (8.3% increase) segments.
Strategic Pricing and Structural Reform
Strategic pricing exceeded plans, contributing to a 2.1-point increase in core operating income margin. Structural reforms and profitability improvement projects like D Pro have also contributed positively.
Share Buyback and Capital Efficiency
Resolution to repurchase shares of common stock and a policy to improve capital efficiency by reducing cross-shareholdings by half over 3 years.
Positive Free Cash Flow
Free cash flow was positive at JPY 65.4 billion.
Negative Updates
Decrease in Assets and Liabilities
Total assets decreased by JPY 100.7 billion and total liabilities decreased by JPY 92.6 billion from the end of the previous fiscal year, affected by currency appreciation.
Life Science Segment Challenges
Core operating income in the Life Science segment decreased by JPY 0.1 billion to negative JPY 0.6 billion, impacted by the penetration of generic drugs and NHI drug price revisions.
Potential Downward Economic Risks
Potential risks include changes in U.S. fiscal and trade policies, prolonged real estate recession in China, and impacts of financial policies in the U.S. and Europe.
Company Guidance
In the earnings call for Q2 2025, Toray Group reported a significant financial upturn, with consolidated revenue for the first half of the fiscal year increasing by 7.9% to JPY 1,294.1 billion. Core operating income soared by 62.6% to JPY 79.1 billion, marking a record high, while profit surged by 92.3% to JPY 55.5 billion. The company highlighted its strategic initiatives, including a share buyback plan funded by the reduction of cross-shareholdings, aimed at enhancing capital efficiency. Segment-wise, Performance Chemicals led growth with a 134.2% rise in core operating income, supported by demand recovery and improved utilization rates, while the Carbon Fiber Composite Materials segment also saw a 54.4% increase in core operating income. The company revised its full-year forecast upwards, anticipating revenue of JPY 2,590 billion and a core operating income of JPY 145 billion, reflecting a robust performance outlook amidst a gradually recovering global economy.Toray Industries Financial Statement Overview
Summary
Toray Industries shows strong financial performance with solid profitability and robust cash flow generation. The income statement highlights effective cost management and revenue growth, while the balance sheet indicates a solid asset base with manageable leverage. Cash flow analysis reveals high-quality earnings and operational stability.Income Statement
Toray Industries shows a strong income statement with solid profitability metrics. The gross profit margin has remained stable, indicating effective cost management. Net profit margin improvements over the years highlight increased efficiency. Revenue growth rate was healthy, especially in the last fiscal year, showing recovery and expansion. Both EBIT and EBITDA margins indicate robust operational performance, supporting the company's profitability.78
Positive
Balance Sheet
The balance sheet of Toray Industries is strong, characterized by a high equity ratio indicating a solid asset base funded by equity. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity is healthy, reflecting efficient use of equity capital, though improvements can be made in optimizing capital structure further.72
Positive
Cash Flow
Cash flow analysis reveals a strong position with consistent operating cash flows exceeding net income, indicating high-quality earnings. Free cash flow growth is positive, allowing for reinvestment opportunities. The company exhibits a healthy operating cash flow to net income ratio, demonstrating efficient cash management and operational stability.81
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.56T | 2.46T | 2.49T | 1.88T | 2.21T |
| Gross Profit | 505.89B | 443.52B | 420.83B | 377.50B | 438.36B |
| EBITDA | 265.29B | 207.84B | 219.00B | 252.43B | 206.08B |
| Net Income | 77.91B | 21.90B | 72.82B | 45.79B | 45.79B |
Balance Sheet | |||||
| Total Assets | 3.29T | 3.47T | 3.19T | 2.85T | 2.65T |
| Cash, Cash Equivalents and Short-Term Investments | 254.52B | 248.86B | 254.69B | 242.49B | 173.70B |
| Total Debt | 842.66B | 949.68B | 950.09B | 973.93B | 913.56B |
| Total Liabilities | 1.47T | 1.62T | 1.56T | 1.53T | 1.47T |
| Stockholders Equity | 1.71T | 1.74T | 1.54T | 1.24T | 1.10T |
Cash Flow | |||||
| Free Cash Flow | 75.78B | 51.55B | 43.00B | 89.11B | 85.62B |
| Operating Cash Flow | 255.03B | 185.68B | 145.21B | 211.59B | 225.77B |
| Investing Cash Flow | -63.20B | -121.00B | -102.72B | -97.87B | -142.36B |
| Financing Cash Flow | -188.52B | -70.37B | -57.38B | -69.40B | -67.59B |
Toray Industries Technical Analysis
Positive
13.78
Price Trends
13.55
Positive
13.44
Positive
12.98
Positive
Market Momentum
0.04
Negative
56.90
Neutral
93.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRYIY, the sentiment is Positive. The current price of 13.78 is above the 20-day moving average (MA) of 13.55, above the 50-day MA of 13.55, and above the 200-day MA of 12.98, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 93.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRYIY.
Toray Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.17B | 28.90 | 8.32% | 1.48% | 1.17% | -30.24% | |
69 Neutral | $11.11B | 21.74 | 4.47% | 0.09% | -1.29% | 224.05% | |
57 Neutral | HK$26.04B | 4.10 | -2.03% | 5.50% | -0.23% | -68.02% | |
55 Neutral | $86.85M | ― | -15.73% | ― | 2.51% | 32.95% | |
52 Neutral | $142.34M | ― | -17.61% | 0.80% | 34.28% | -495.11% |
* Consumer Cyclical Sector Average
Performance Comparison
TRYIY
Toray Industries
13.78
3.61
35.50%
AIN
Albany International
72.23
-18.53
-20.42%
LAKE
Lakeland Industries
14.96
-8.45
-36.10%
UFI
Unifi
4.73
-1.45
-23.46%
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.