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Toray Industries
(3402)
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Rating:65Neutral
Price Target:
¥1,303.00
▼(-1.03% Downside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by improving financial performance (profitability rebound and a sound, moderately leveraged balance sheet), offset by weaker cash-flow conversion and volatility. Technicals add support with strong trend/momentum, but elevated RSI/Stoch indicate higher near-term pullback risk. Valuation is only fair given a ~21.9 P/E and ~1.73% dividend yield.
Positive Factors
Profitability Recovery
The rebound from the 2024 profitability trough indicates that Toray has restored more normal operating performance across its businesses. Higher margins can improve internal funding for advanced-materials investment, strengthen resilience, and support earnings stability over the next several quarters.
Negative Factors
Weak Cash Conversion
Positive cash generation is not translating efficiently from reported earnings, which reduces the quality and predictability of profits. Weak conversion can constrain internally funded investment, dividends, or debt reduction and leaves performance more exposed to working-capital execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The rebound from the 2024 profitability trough indicates that Toray has restored more normal operating performance across its businesses. Higher margins can improve internal funding for advanced-materials investment, strengthen resilience, and support earnings stability over the next several quarters.
Read all positive factors
Toray Industries (3402) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.82T
Dividend Yield1.6%
Average Volume (3M)3.84M
Price to Earnings (P/E)19.5
Beta (1Y)1.02
Revenue Growth5.82%
EPS Growth47.74%
CountryJP
Employees46,294
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)63.15
Shares Outstanding1,504,481,400
10 Day Avg. Volume4,655,550
30 Day Avg. Volume3,838,696
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)0.92
Price to Sales (P/S)0.64
P/FCF Ratio25.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,531.67Price Target Upside16.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)69.49
Revenue Forecast (FY)¥2.79T
Toray Industries Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, Toray Industries, Inc. is a global conglomerate, established in 1926, that develops, manufactures, and distributes a comprehensive range of advanced materials and innovative products. Through its worldwide network of...
How the Company Makes Money
Toray makes money primarily by manufacturing and selling materials and material-based products to business customers across industries such as apparel/textiles, automotive, aerospace, electronics, industrial manufacturing, construction, and water/...
Toray Industries Earnings Call Summary
Earnings Call Date:Nov 07, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record high core operating income and significant revenue increases across key segments like Performance Chemicals and Carbon Fiber Composite Materials. However, challenges remain in asset management and specific segments like Life Science and Fibers & Textiles in Korea.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 setting a record high.
Negative Updates
Decrease in Total Assets
Total assets decreased by JPY 100.7 billion from the end of the previous fiscal year due to decreases in trade and other receivables.
Read all updates
Q2-2025 Updates
Positive
Negative
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 setting a record high.
Read all positive updates
Company Guidance
In the Q2 2025 earnings call for Toray Group, Masahiko Okamoto reported robust financial performance with consolidated revenue rising 7.9% to JPY 1,294.1 billion and core operating income soaring 62.6% to JPY 79.1 billion compared to the previous year. The company achieved a profit increase of 92.3% to JPY 55.5 billion. Notably, Toray has revised its fiscal year forecast upwards, now expecting revenue of JPY 2,590 billion, core operating income of JPY 145 billion, and profit of JPY 88 billion, based on an exchange rate assumption of JPY 140 to the U.S. dollar. Core segments such as Performance Chemicals saw significant gains, with core operating income in this segment surging 134.2% year-on-year. Toray also announced strategic initiatives including a share repurchase plan and a focus on capital efficiency, aiming to reduce cross-shareholdings by half from FY 2024 to 2026, utilizing proceeds for further buybacks.Toray Industries Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
71
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.67T | 2.59T | 2.56T | 2.46T | 2.49T | 2.23T |
| Gross Profit | 546.55B | 520.05B | 505.89B | 443.52B | 420.83B | 435.97B |
| EBITDA | 274.13B | 258.95B | 261.68B | 206.76B | 250.05B | 246.94B |
| Net Income | 93.63B | 79.52B | 77.91B | 21.90B | 72.82B | 84.23B |
Balance Sheet | ||||||
| Total Assets | 3.49T | 3.48T | 3.29T | 3.47T | 3.19T | 3.04T |
| Cash, Cash Equivalents and Short-Term Investments | 259.63B | 265.30B | 237.29B | 235.89B | 224.00B | 229.30B |
| Total Debt | 901.12B | 905.56B | 842.66B | 949.68B | 950.09B | 935.66B |
| Total Liabilities | 1.54T | 1.55T | 1.47T | 1.62T | 1.56T | 1.54T |
| Stockholders Equity | 1.82T | 1.80T | 1.71T | 1.74T | 1.54T | 1.41T |
Cash Flow | ||||||
| Free Cash Flow | 87.02B | 65.26B | 75.78B | 51.55B | 43.00B | 46.09B |
| Operating Cash Flow | 216.04B | 211.76B | 255.03B | 185.68B | 145.21B | 138.29B |
| Investing Cash Flow | -49.51B | -66.94B | -63.20B | -121.00B | -102.72B | -57.17B |
| Financing Cash Flow | -149.05B | -129.00B | -188.52B | -70.37B | -57.38B | -101.52B |
Toray Industries Technical Analysis
Neutral
1316.50
Price Trends
1246.40
Negative
1188.82
Positive
1157.78
Positive
Market Momentum
-0.88
Positive
48.33
Neutral
42.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3402, the sentiment is Neutral. The current price of 1316.5 is above the 20-day moving average (MA) of 1235.79, above the 50-day MA of 1246.40, and above the 200-day MA of 1157.78, indicating a neutral trend. The MACD of -0.88 indicates Positive momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 42.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3402.
Toray Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥187.51B | 12.71 | 10.34% | 2.17% | 11.57% | 10.78% | |
72 Outperform | ¥126.25B | 21.46 | ― | 2.06% | 9.28% | 21.28% | |
68 Neutral | ¥12.61B | 13.44 | ― | 4.92% | 20.31% | 6.98% | |
67 Neutral | ¥639.63B | 13.99 | 27.25% | 0.93% | 11.59% | 248.87% | |
65 Neutral | ¥1.82T | 19.54 | 5.28% | 1.60% | 5.82% | 47.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥120.17B | 27.89 | 4.18% | 3.63% | -4.36% | 49.85% |
* Consumer Cyclical Sector Average
JP:3402
Toray Industries
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Toray Industries Corporate Events
Toray Sets Price for Treasury Share Disposal in Employee Restricted Stock Plan
Aug 18, 2026
Toray Industries has set the disposal price for up to 2,524,060 treasury shares to be granted as restricted stock to employees through its Employee Stock Ownership Association, pricing the shares at 1,333 yen each for a total potential value of ab...
Toray Completes Restricted Stock Treasury Share Disposal for Executive Remuneration
Aug 17, 2026
Toray Industries has completed the payment procedures for the disposal of 245,153 treasury shares used as restricted stock remuneration, following a board resolution passed in late July. The shares, priced at 1,179.5 yen each for a total value of ...
Toray to Allocate Treasury Shares as Restricted Stock in New Employee Ownership Plan
Aug 6, 2026
Toray Industries has approved the disposal of up to 2,524,060 treasury shares as restricted stock to be allocated to members of its Employee Stock Ownership Association, with each eligible employee slated to receive an equal 242 shares. The dispos...
Toray Releases First-Quarter 2026 Results and Fiscal 2026 Outlook
Aug 6, 2026
Toray Industries announced its consolidated business results for the first quarter ended June 30, 2026, providing an overview of recent operating performance. The company also presented a business forecast for the first half of the fiscal year end...
Toray Industries Posts Strong Q1 Results and Lifts Full-Year Outlook
Aug 6, 2026
Toray Industries reported a strong first quarter for the fiscal year ending March 31, 2027, with revenue rising 14% year on year to ¥678.97 billion and core operating income jumping 66.6%. Profit attributable to owners of the parent surged 82...
Toray Allocates Treasury Shares as Long-Term Restricted Stock for Executives
Jul 24, 2026
Toray Industries has approved the disposal of 245,153 treasury shares as restricted stock remuneration to 43 senior executives, including board members, corporate vice presidents, fellows, and vice presidents, with a total value of about ¥289...
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.