DB:TOR1

Stock Analysis Report

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Executive Summary

Toray Industries, Inc. manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products.


Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Toray Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TOR1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

TOR1

3.0%

DE Chemicals

2.8%

DE Market


1 Year Return

-37.6%

TOR1

-13.3%

DE Chemicals

0.3%

DE Market

Return vs Industry: TOR1 underperformed the German Chemicals industry which returned -13.2% over the past year.

Return vs Market: TOR1 underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

TOR1IndustryMarket
7 Day-1.0%3.0%2.8%
30 Day-6.5%-5.0%0.2%
90 Day12.2%22.7%27.7%
1 Year-35.9%-37.6%-9.9%-13.3%2.3%0.3%
3 Year-39.9%-43.5%-21.7%-29.8%3.5%-4.9%
5 Year-37.4%-42.8%-16.3%-30.1%11.4%-3.4%

Price Volatility Vs. Market

How volatile is Toray Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Toray Industries undervalued compared to its fair value and its price relative to the market?

36.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOR1 (€4.06) is trading below our estimate of fair value (€6.4)

Significantly Below Fair Value: TOR1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TOR1 is good value based on its PE Ratio (14.4x) compared to the Chemicals industry average (18.5x).

PE vs Market: TOR1 is good value based on its PE Ratio (14.4x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: TOR1 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: TOR1 is good value based on its PB Ratio (0.7x) compared to the DE Chemicals industry average (1.5x).


Next Steps

Future Growth

How is Toray Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOR1's forecast earnings growth (12.7% per year) is above the savings rate (0.2%).

Earnings vs Market: TOR1's earnings (12.7% per year) are forecast to grow slower than the German market (22.2% per year).

High Growth Earnings: TOR1's earnings are forecast to grow, but not significantly.

Revenue vs Market: TOR1's revenue (1.6% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: TOR1's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOR1's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Toray Industries performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOR1 has high quality earnings.

Growing Profit Margin: TOR1's current net profit margins (2.5%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: TOR1's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: TOR1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TOR1 had negative earnings growth (-29.8%) over the past year, making it difficult to compare to the Chemicals industry average (-18.8%).


Return on Equity

High ROE: TOR1's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Toray Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TOR1's short term assets (¥1,128.5B) exceed its short term liabilities (¥630.8B).

Long Term Liabilities: TOR1's short term assets (¥1,128.5B) exceed its long term liabilities (¥840.3B).


Debt to Equity History and Analysis

Debt Level: TOR1's debt to equity ratio (77.4%) is considered high.

Reducing Debt: TOR1's debt to equity ratio has increased from 64% to 77.4% over the past 5 years.

Debt Coverage: TOR1's debt is well covered by operating cash flow (24.7%).

Interest Coverage: TOR1's interest payments on its debt are well covered by EBIT (621.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Toray Industries's current dividend yield, its reliability and sustainability?

1.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOR1's dividend (1.79%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: TOR1's dividend (1.79%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: TOR1's dividend payments have been volatile in the past 10 years.

Growing Dividend: TOR1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.9%), TOR1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.0yrs

Average board tenure


CEO

Akihiro Nikkaku (71yo)

no data

Tenure

JP¥152,000,000

Compensation

Mr. Akihiro Nikkaku has been the President of Toray Industries, Inc. since June, 2010 and serves as its Chief Executive Officer and Chief Operating Officer. Mr. Nikkaku served as an Executive Vice Presiden ...


CEO Compensation Analysis

Compensation vs Market: Akihiro's total compensation ($USD1.41M) is below average for companies of similar size in the German market ($USD3.52M).

Compensation vs Earnings: Akihiro's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Akihiro Nikkaku
CEO, Presidentno dataJP¥152.00m0.011% ¥764.2k
Toru Fukasawa
Senior VP8.5yrsno data0.0021% ¥141.5k
Koichi Abe
CTO, Executive VP15.5yrsno data0.0052% ¥344.9k
Hideki Hirabayashi
VP, GM of Legal3.08yrsno data0.0014% ¥91.7k
Hiroshi Otani
Senior VP9.5yrsno data0.0019% ¥128.9k
Yukichi Deguchi
Executive VP11.5yrsno data0.0044% ¥295.0k
Kazuo Morimoto
Senior VP11.5yrsno data0.0045% ¥299.0k
Ryo Murayama
Executive VP12.5yrsno data0.0039% ¥261.8k
Osamu Inoue
Senior VP10.5yrsno data0.0019% ¥124.9k
Mitsuo Ohya
Senior VP8.5yrsno data0.0036% ¥236.6k

11.0yrs

Average Tenure

67yo

Average Age

Experienced Board: TOR1's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Toray Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Toray Industries, Inc.
  • Ticker: TOR1
  • Exchange: DB
  • Founded: 1926
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: JP¥803.175b
  • Listing Market Cap: JP¥6.645b
  • Shares outstanding: 1.60b
  • Website: https://www.toray.co.jp

Number of Employees


Location

  • Toray Industries, Inc.
  • Nihonbashi Mitsui Tower
  • 1-1, Nihonbashi-Muromachi 2-chome
  • Tokyo
  • 103-8666
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRYI.YOTCPK (Pink Sheets LLC)ADRUSUSDMar 1991
TRYI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
3402TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
TOR1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Toray Industries, Inc. manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products. 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-microfiber non-woven fabric with suede-texture; 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 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. As of March 31, 2019, Toray Industries, Inc. operated in 26 countries and regions, including Japan. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. Toray Industries, Inc. was founded in 1926 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 21:21
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.