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3402

Toray Industries TSE:3402 Stock Report

Last Price

JP¥761.20

Market Cap

JP¥1.2t

7D

4.4%

1Y

2.4%

Updated

30 Jun, 2022

Data

Company Financials +
3402 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends4/6

3402 Stock Overview

Toray 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.

Toray Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Toray Industries
Historical stock prices
Current Share PriceJP¥761.20
52 Week HighJP¥765.50
52 Week LowJP¥550.50
Beta1.13
1 Month Change14.24%
3 Month Change20.33%
1 Year Change2.42%
3 Year Change-5.66%
5 Year Change-21.23%
Change since IPO17.83%

Recent News & Updates

Shareholder Returns

3402JP ChemicalsJP Market
7D4.4%3.3%2.3%
1Y2.4%-12.2%-3.9%

Return vs Industry: 3402 exceeded the JP Chemicals industry which returned -12.2% over the past year.

Return vs Market: 3402 exceeded the JP Market which returned -3.9% over the past year.

Price Volatility

Is 3402's price volatile compared to industry and market?
3402 volatility
3402 Average Weekly Movement3.3%
Chemicals Industry Average Movement4.1%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.4%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 3402 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 3402's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192646,267Akihiro Nikkakuhttps://www.toray.co.jp

Toray 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-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.

Toray Industries Fundamentals Summary

How do Toray Industries's earnings and revenue compare to its market cap?
3402 fundamental statistics
Market CapJP¥1.20t
Earnings (TTM)JP¥84.24b
Revenue (TTM)JP¥2.23t

14.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3402 income statement (TTM)
RevenueJP¥2.23t
Cost of RevenueJP¥1.79t
Gross ProfitJP¥435.97b
Other ExpensesJP¥351.73b
EarningsJP¥84.24b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)52.62
Gross Margin19.56%
Net Profit Margin3.78%
Debt/Equity Ratio59.9%

How did 3402 perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3402 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3402?

Other financial metrics that can be useful for relative valuation.

3402 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA9x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does 3402's PE Ratio compare to its peers?

3402 PE Ratio vs Peers
The above table shows the PE ratio for 3402 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.9x
3407 Asahi Kasei
8.9x6.3%JP¥1.4t
4183 Mitsui Chemicals
5.1x2.2%JP¥558.5b
4042 Tosoh
5x-1.4%JP¥536.2b
3405 Kuraray
8.3x0.8%JP¥370.5b
3402 Toray Industries
14.5x11.3%JP¥1.2t

Price-To-Earnings vs Peers: 3402 is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (6.8x).


Price to Earnings Ratio vs Industry

How does 3402's PE Ratio compare vs other companies in the JP Chemicals Industry?

Price-To-Earnings vs Industry: 3402 is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the JP Chemicals industry average (9.4x)


Price to Earnings Ratio vs Fair Ratio

What is 3402's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3402 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio13.4x

Price-To-Earnings vs Fair Ratio: 3402 is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).


Share Price vs Fair Value

What is the Fair Price of 3402 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3402 (¥761.2) is trading below our estimate of fair value (¥1061.29)

Significantly Below Fair Value: 3402 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 3402 is poor value based on its PEG Ratio (1.3x)


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Future Growth

How is Toray Industries forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3402's forecast earnings growth (11.3% per year) is above the savings rate (0.04%).

Earnings vs Market: 3402's earnings (11.3% per year) are forecast to grow faster than the JP market (9% per year).

High Growth Earnings: 3402's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3402's revenue (5.4% per year) is forecast to grow faster than the JP market (4.4% per year).

High Growth Revenue: 3402's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3402's Return on Equity is forecast to be low in 3 years time (8%).


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Past Performance

How has Toray Industries performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3402 has a large one-off loss of ¥57.3B impacting its March 31 2022 financial results.

Growing Profit Margin: 3402's current net profit margins (3.8%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: 3402's earnings have declined by 9.9% per year over the past 5 years.

Accelerating Growth: 3402's earnings growth over the past year (83.9%) exceeds its 5-year average (-9.9% per year).

Earnings vs Industry: 3402 earnings growth over the past year (83.9%) exceeded the Chemicals industry 26.6%.


Return on Equity

High ROE: 3402's Return on Equity (6.2%) is considered low.


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Financial Health

How is Toray Industries's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3402's short term assets (¥1,373.2B) exceed its short term liabilities (¥738.1B).

Long Term Liabilities: 3402's short term assets (¥1,373.2B) exceed its long term liabilities (¥806.1B).


Debt to Equity History and Analysis

Debt Level: 3402's net debt to equity ratio (44.1%) is considered high.

Reducing Debt: 3402's debt to equity ratio has reduced from 64.7% to 59.9% over the past 5 years.

Debt Coverage: 3402's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: 3402 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 3402's dividend (2.36%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 3402's dividend (2.36%) is low compared to the top 25% of dividend payers in the JP market (3.67%).


Stability and Growth of Payments

Stable Dividend: 3402's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3402's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.7%), 3402's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (62.5%), 3402's dividend payments are covered by cash flows.


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Management

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

6.0yrs

Average management tenure


CEO

Akihiro Nikkaku (72 yo)

12.42yrs

Tenure

JP¥149,000,000

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 since 2020. Mr. Nikkaku served as an Executive Vic...


CEO Compensation Analysis

Compensation vs Market: Akihiro's total compensation ($USD1.09M) is about average for companies of similar size in the JP market ($USD1.10M).

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


Leadership Team

Experienced Management: 3402's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: 3402's board of directors are considered experienced (8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Toray Industries, Inc.
  • Ticker: 3402
  • Exchange: TSE
  • Founded: 1926
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: JP¥1.204t
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.