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Toray Industries Inc (TRYIY)
OTHER OTC:TRYIY
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Toray Industries
(OTC:TRYIY)
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Rating:59Neutral
Price Target:
$13.50
▲(3.53% Upside)
Toray Industries' overall stock score reflects stable profitability margins and positive short-term technical momentum. However, the declining revenue and cash flow growth, coupled with a high P/E ratio, pose risks. The stock's valuation and long-term technical indicators suggest caution for investors.
Positive Factors
Diversified Business Model
A diversified business model across textiles, plastics, carbon fiber, and life sciences reduces dependency on a single market, enhancing stability.
Strategic Partnerships
Strategic partnerships enhance market reach and technological capabilities, supporting long-term growth and competitive advantage.
R&D Investment
Continuous R&D investment fosters innovation, ensuring Toray stays competitive by meeting evolving industry needs and driving future growth.
Negative Factors
Declining Revenue Growth
A substantial decline in revenue growth indicates potential challenges in market demand or competitiveness, impacting long-term profitability.
Cash Flow Constraints
Declining cash flow growth limits the company's ability to invest in new opportunities and manage debt, affecting financial flexibility.
Low Return on Equity
Low ROE indicates inefficiencies in generating returns from equity, which may hinder investor confidence and long-term value creation.
Toray Industries (TRYIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.29B
Dividend Yield1.48%
Average Volume (3M)818.00
Price to Earnings (P/E)27.1
Beta (1Y)0.24
Revenue Growth-1.45%
EPS Growth30.18%
CountryUS
Employees48,140
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.17
Shares Outstanding752,240,700
10 Day Avg. Volume0
30 Day Avg. Volume818
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 Cap203.95
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda12.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Toray Industries Business Overview & Revenue Model
Company DescriptionToray Industries, Inc. is a leading global manufacturer specializing in advanced materials and technology solutions. Founded in Japan, the company operates across several sectors, including textiles, carbon fiber composites, plastics, and chemicals. Toray is known for its innovative products, including high-performance fibers, films, and resins that serve a wide range of industries such as aerospace, automotive, electronics, and healthcare.
How the Company Makes MoneyToray Industries generates revenue through a diversified business model that includes multiple key segments such as fibers and textiles, plastics and chemicals, carbon fiber composites, and life sciences. Each of these segments contributes to the company's earnings through the sale of high-value products and specialized materials. The fibers and textiles segment, for instance, provides a steady income through the production of synthetic fibers and fabrics used in clothing and industrial applications. The plastics and chemicals division profits from the manufacture of various polymer products and chemicals used in diverse industries. Additionally, the carbon fiber composites sector has seen significant growth due to increasing demand in aerospace and automotive applications, where lightweight, durable materials are essential. Toray also engages in strategic partnerships and collaborations with various companies, enhancing its market reach and technological capabilities, which further contribute to its revenue. Furthermore, the company invests in research and development to create innovative solutions that meet evolving industry needs, ensuring a competitive edge and sustained earnings growth.
Toray Industries Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
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 stable profitability margins but faces challenges with declining revenue and cash flow growth. The balance sheet reflects moderate leverage and a stable equity position, yet the low return on equity indicates inefficiencies. Overall, while the company maintains a stable financial structure, the declining growth rates and cash flow constraints pose potential risks for future performance.Income Statement
Toray Industries has experienced a significant decline in revenue growth, with a TTM revenue decrease of 25.86%. Despite this, the company maintains a stable gross profit margin of approximately 19.90% and a net profit margin of 2.37%. The EBIT and EBITDA margins are also relatively stable at 4.60% and 9.74%, respectively. However, the negative revenue growth trajectory is a concern for future profitability.Balance Sheet
The company's debt-to-equity ratio is moderate at 0.52, indicating a balanced approach to leveraging. However, the return on equity is relatively low at 3.44%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 51.25%, reflecting a stable capital structure, but the low ROE could be a potential risk for investors.Cash Flow
Toray Industries faces challenges in cash flow growth, with a TTM free cash flow decline of 31.98%. The operating cash flow to net income ratio is 0.28, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.21, suggesting limited free cash flow relative to earnings, which could impact future investments and debt servicing.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.87T | 2.56T | 2.46T | 2.49T | 2.23T | 1.88T |
| Gross Profit | 369.48B | 505.89B | 443.52B | 420.83B | 377.50B | 438.36B |
| EBITDA | 172.01B | 265.29B | 207.84B | 219.00B | 252.43B | 206.08B |
| Net Income | 39.67B | 77.91B | 21.90B | 72.82B | 84.23B | 45.79B |
Balance Sheet | ||||||
| Total Assets | 22.69B | 3.29T | 3.47T | 3.19T | 2.85T | 2.65T |
| Cash, Cash Equivalents and Short-Term Investments | 228.06B | 254.52B | 248.86B | 254.69B | 242.49B | 242.49B |
| Total Debt | 896.19B | 842.66B | 949.68B | 950.09B | 935.66B | 973.93B |
| Total Liabilities | 1.52T | 1.47T | 1.62T | 1.56T | 1.53T | 1.47T |
| Stockholders Equity | 11.62B | 1.71T | 1.74T | 1.54T | 1.41T | 1.24T |
Cash Flow | ||||||
| Free Cash Flow | 39.36B | 75.78B | 51.55B | 43.00B | 89.11B | 85.62B |
| Operating Cash Flow | 188.93B | 255.03B | 185.68B | 145.21B | 211.59B | 225.77B |
| Investing Cash Flow | -12.78B | -63.20B | -121.00B | -102.72B | -97.87B | -142.36B |
| Financing Cash Flow | -112.16B | -188.52B | -70.37B | -57.38B | -69.40B | -67.59B |
Toray Industries Technical Analysis
Positive
13.04
Price Trends
12.91
Positive
12.95
Positive
13.15
Positive
Market Momentum
0.25
Negative
67.83
Neutral
93.28
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 13.04 is below the 20-day moving average (MA) of 13.34, above the 50-day MA of 12.91, and below the 200-day MA of 13.15, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 67.83 is Neutral, neither overbought nor oversold. The STOCH value of 93.28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.43B | 26.51 | 10.58% | 1.33% | -1.88% | -5.94% | |
71 Outperform | $1.26B | 8.99 | 8.61% | ― | -2.61% | -11.87% | |
69 Neutral | $3.02B | 16.84 | 10.84% | 2.18% | 2.76% | -7.83% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $10.29B | 27.10 | 3.37% | 1.48% | -1.45% | 30.18% | |
56 Neutral | $1.63B | -29.33 | -6.19% | 2.13% | -9.37% | -160.13% | |
44 Neutral | $65.91M | -2.92 | -9.61% | ― | -5.26% | 42.84% |
* Consumer Cyclical Sector Average
TRYIY
Toray Industries
14.16
1.27
9.82%
AIN
Albany International
57.18
-22.32
-28.07%
COLM
Columbia Sportswear
55.35
-26.45
-32.33%
GIII
G-III Apparel Group
30.02
-0.43
-1.42%
UFI
Unifi
3.83
-1.84
-32.45%
ZGN
Ermenegildo Zegna
10.80
3.30
44.00%
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.