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Toray Industries Inc (TRYIY)
OTHER OTC:TRYIY
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Toray Industries
(OTC:TRYIY)
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Rating:65Neutral
Price Target:
$14.50
▲(14.35% Upside)
Toray Industries' overall stock score is driven primarily by its strong financial performance, particularly in profitability and cash flow generation. However, technical analysis indicates potential bearish momentum, and the valuation suggests moderate attractiveness. The absence of recent earnings call insights or notable corporate events leaves the financial and technical aspects as the primary influences on the score.
Toray Industries (TRYIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.30B
Dividend Yield0.88%
Average Volume (3M)2.64K
Price to Earnings (P/E)22.4
Beta (1Y)0.25
Revenue Growth-0.46%
EPS Growth102.52%
CountryUS
Employees48,140
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.15
Shares Outstanding815,740,700
10 Day Avg. Volume3,065
30 Day Avg. Volume2,644
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.95
Price to Sales (P/S)0.63
P/FCF Ratio21.39
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price Target
$14.50Price Target Upside14.35% Upside
Rating ConsensusHold
Number of Analyst Covering0
Toray Industries Business Overview & Revenue Model
Company DescriptionToray 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 MoneyToray Industries generates revenue through multiple key streams, primarily by selling a diverse range of high-value materials and products across its various business segments. The company earns significant income from its fibers and textiles division, which includes synthetic fibers used in apparel and industrial applications. Additionally, the performance chemicals segment contributes to revenue through specialty chemicals and films. Another essential revenue stream comes from the advanced composites sector, particularly carbon fiber products used in lightweight automotive and aerospace components. Toray also engages in strategic partnerships and joint ventures with other companies to expand its market reach and enhance technological capabilities, further driving its earnings. Factors such as increasing demand for lightweight materials in various industries, innovations in product development, and a focus on sustainability initiatives play a crucial role in the company’s financial performance.
Toray Industries Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 14, 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 presents a robust financial profile with strengths in profitability and cash flow generation. The income statement shows solid profitability metrics, and the balance sheet indicates a strong 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 | 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 | 377.50B | 438.36B |
| EBITDA | 245.19B | 265.29B | 207.84B | 219.00B | 252.43B | 206.08B |
| 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 | 2.85T | 2.65T |
| Cash, Cash Equivalents and Short-Term Investments | 228.61B | 254.52B | 248.86B | 254.69B | 242.49B | 242.49B |
| Total Debt | 904.32B | 842.66B | 949.68B | 950.09B | 935.66B | 973.93B |
| Total Liabilities | 1.51T | 1.47T | 1.62T | 1.56T | 1.53T | 1.47T |
| 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 | 89.11B | 85.62B |
| Operating Cash Flow | 247.81B | 255.03B | 185.68B | 145.21B | 211.59B | 225.77B |
| Investing Cash Flow | -77.30B | -63.20B | -121.00B | -102.72B | -97.87B | -142.36B |
| Financing Cash Flow | -172.73B | -188.52B | -70.37B | -57.38B | -69.40B | -67.59B |
Toray Industries Technical Analysis
Negative
12.68
Price Trends
13.31
Negative
13.44
Negative
13.36
Negative
Market Momentum
-0.12
Negative
40.86
Neutral
70.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRYIY, the sentiment is Negative. The current price of 12.68 is below the 20-day moving average (MA) of 13.04, below the 50-day MA of 13.31, and below the 200-day MA of 13.36, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 70.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRYIY.
Toray Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.13B | 6.70 | 11.32% | ― | 1.19% | 1.62% | |
70 Outperform | $4.15B | 24.82 | 10.58% | 1.45% | -1.88% | -5.94% | |
67 Neutral | $1.67B | 28.21 | 6.71% | 1.94% | -5.16% | -42.62% | |
67 Neutral | $2.85B | 13.25 | 12.93% | 2.26% | 0.81% | 4.86% | |
65 Neutral | $10.30B | 22.41 | 3.98% | 0.88% | -0.46% | 102.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | $85.93M | ― | -7.94% | ― | -1.87% | 57.41% |
* Consumer Cyclical Sector Average
TRYIY
Toray Industries
12.68
1.31
11.52%
AIN
Albany International
54.94
-16.31
-22.89%
COLM
Columbia Sportswear
51.39
-27.35
-34.73%
GIII
G-III Apparel Group
26.19
-4.26
-13.99%
UFI
Unifi
4.64
-2.28
-32.95%
ZGN
Ermenegildo Zegna
9.71
1.06
12.25%
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.