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Toray Industries Inc (TRYIY)
OTHER OTC:TRYIY
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Toray Industries
(OTC:TRYIY)
Rating:63Neutral
Price Target:―
Toray Industries (TRYIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.93B
Dividend Yield1.04%
Average Volume (3M)1.48K
Price to Earnings (P/E)21.3
Beta (1Y)0.36
Revenue Growth-1.73%
EPS Growth9.50%
CountryUS
Employees48,140
SectorConsumer Cyclical
Sector Strength60
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.16
Shares Outstanding815,740,700
10 Day Avg. Volume4,452
30 Day Avg. Volume1,484
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.79
Price to Sales (P/S)0.00
P/FCF Ratio28.19
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. is a multinational corporation headquartered in Japan, specializing in advanced materials and technology solutions. The company operates in diverse sectors including fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering, life sciences, and others. Toray is known for its innovative products such as synthetic fibers, resins, films, carbon fiber, and water treatment membranes, which are used across various industries including automotive, aerospace, electronics, and healthcare.
How the Company Makes MoneyToray Industries generates revenue through the production and sale of advanced materials and technology solutions across multiple sectors. Its key revenue streams include fibers and textiles, which supply materials for apparel and industrial applications; performance chemicals, which cover a range of products such as resins and films for packaging and electronic applications; and carbon fiber composite materials, which are used in the automotive and aerospace industries. The company also earns revenue through its environment and engineering sector, providing water treatment and environmental solutions, as well as through its life sciences division, which develops pharmaceuticals and medical products. Strategic partnerships and collaborations with other companies and industries further enhance its revenue potential, allowing Toray to leverage its technological expertise to meet diverse market needs.
Toray Industries Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q2-2025)
| % Change Since: 4.03%|
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 a stable financial condition with a strong balance sheet, despite challenges in revenue growth and profitability. The income statement indicates a decline in total revenue and net income, while the balance sheet maintains a strong equity position. Cash flow management is crucial, given the fluctuations in free cash flow.Income Statement
Toray Industries has shown resilience in its income statement with a stable gross profit margin and EBIT margin. However, there has been a decline in total revenue over the recent years, leading to a decrease in net income. The net profit margin has also decreased, indicating challenges in maintaining profitability in a competitive industry.70
Positive
Balance Sheet
The balance sheet of Toray Industries indicates a strong equity position with a consistent equity ratio. The debt-to-equity ratio is moderate, showing a balanced leverage. However, the return on equity has declined, which may suggest inefficiencies in generating shareholder value.75
Positive
Cash Flow
Cash flow from operations has been strong, but free cash flow has seen fluctuations, impacting long-term financial flexibility. The company has managed to maintain a positive operating cash flow to net income ratio, but the free cash flow to net income ratio suggests room for improvement in cash generation relative to earnings.65
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52T | 2.46T | 2.49T | 1.88T | 2.21T | 2.09T |
| Gross Profit | 465.39B | 443.52B | 420.83B | 377.50B | 438.36B | 429.29B |
| EBITDA | 248.13B | 207.84B | 219.00B | 252.43B | 206.08B | 247.19B |
| Net Income | 34.81B | 21.90B | 72.82B | 45.79B | 45.79B | 84.23B |
Balance Sheet | ||||||
| Total Assets | 3.60T | 3.47T | 3.19T | 2.85T | 2.65T | 2.79T |
| Cash, Cash Equivalents and Short-Term Investments | 247.97B | 248.86B | 254.69B | 242.49B | 173.70B | 168.51B |
| Total Debt | 970.80B | 949.68B | 950.09B | 973.93B | 913.56B | 972.42B |
| Total Liabilities | 1.65T | 1.62T | 1.56T | 1.53T | 1.47T | 1.57T |
| Stockholders Equity | 1.83T | 1.74T | 1.54T | 1.24T | 1.10T | 1.13T |
Cash Flow | ||||||
| Free Cash Flow | 40.11B | 51.55B | 43.00B | 89.11B | 85.62B | 6.61B |
| Operating Cash Flow | 173.50B | 185.68B | 145.21B | 211.59B | 225.77B | 176.24B |
| Investing Cash Flow | -120.85B | -121.00B | -102.72B | -97.87B | -142.36B | -260.25B |
| Financing Cash Flow | -60.08B | -70.37B | -57.38B | -69.40B | -67.59B | 118.89B |
Toray Industries Technical Analysis
Positive
13.68
Price Trends
13.36
Positive
13.41
Positive
12.80
Positive
Market Momentum
0.05
Negative
54.58
Neutral
96.18
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 13.68 is above the 20-day moving average (MA) of 13.51, above the 50-day MA of 13.36, and above the 200-day MA of 12.80, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 96.18 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.18B | 29.07 | 8.32% | 1.50% | 1.17% | -30.24% | |
63 Neutral | $10.93B | 21.30 | 4.47% | 1.04% | -1.73% | 9.50% | |
62 Neutral | $16.85B | 11.50 | -7.38% | 2.96% | 1.59% | -23.36% | |
55 Neutral | $91.80M | ― | -15.73% | ― | 2.51% | 32.95% | |
47 Neutral | $132.06M | ― | -17.61% | 0.86% | 34.28% | -495.11% |
* Consumer Cyclical Sector Average
Performance Comparison
TRYIY
Toray Industries
13.68
4.22
44.61%
AIN
Albany International
72.23
-9.19
-11.29%
LAKE
Lakeland Industries
13.88
-8.43
-37.79%
UFI
Unifi
5.00
-0.67
-11.82%
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.