- Net Loss: Toray Industries reported a net loss of 23.76 billion yen for Q4, missing the estimated profit of 13.11 billion yen.
- Net Sales: Net sales for the period reached 635.19 billion yen, a year-over-year increase of 8.1%, slightly above the estimate of 633.81 billion yen.
- Fibers & Textiles: Revenue was 974.79 billion yen, down 2.4% year-over-year, and below the estimate of 977.54 billion yen.
- Performance Chemicals: Revenue stood at 886.08 billion yen, a decline of 2.6% year-over-year, and lower than the estimate of 892.86 billion yen.
- Carbon Fiber Composite Materials: Revenue rose by 3.1% year-over-year to 290.48 billion yen, exceeding the estimate of 285.98 billion yen.
- Environment & Engineering: Revenue increased by 6.7% year-over-year to 244.09 billion yen, just below the estimate of 246.04 billion yen.
- Life Science: Revenue was 52.23 billion yen, down 2.8% year-over-year, missing the estimate of 53.8 billion yen.
- First Half Forecast: Toray expects net sales of 1.26 trillion yen, core operating profit of 60 billion yen, and net income of 39.00 billion yen.
- 2025 Forecast: Toray forecasts net sales of 2.62 trillion yen, core operating profit of 135 billion yen, and net income of 81.00 billion yen, with a dividend of 18.00 yen (vs. estimate 19.25 yen).
- Cross-Shareholdings: Toray plans to reduce cross-shareholdings by 50% over three years, amounting to approximately 100 billion yen.
- Textile Business: Sales for clothing applications were sluggish in Europe and the US, while hygiene product sales were impacted by a poor supply-demand balance. Industrial applications saw recovery due to automotive demand and EV expansion.
- Performance Chemicals: The resins and chemicals business was sluggish due to declining demand in China but showed improvement in domestic automotive applications.
- Carbon Fiber Business: Aerospace applications are recovering, while wind turbine blade applications are adjusting, and demand for general industrial applications has weakened.
- Environmental & Engineering: Water treatment product shipments to the US and China remained strong, along with robust domestic construction and plant-related sales.
- Analyst Ratings: Toray has 9 buy ratings, 3 hold ratings, and 2 sell ratings.
A look at Toray Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With a strong Value score of 4, Toray Industries is deemed as an attractive investment option based on its potential to provide good returns relative to its current price. Additionally, the company’s Momentum score of 4 suggests that Toray is experiencing positive price movements, indicating growing investor interest and potential for further stock price appreciation in the future.
While Toray Industries may not score as high in terms of Growth and Resilience, with scores of 2 for both factors, the company’s consistent performance and moderate Dividend score of 3 show that it still offers stability and income potential to investors. Overall, taking into account its diversified product portfolio and strong market presence, Toray Industries presents a promising long-term outlook for investors seeking a balanced mix of value and growth in the manufacturing sector.
Summary: TORAY INDUSTRIES, INC. is a leading manufacturer of yarns, synthetic fibers, man-made leather, chemical products, and information equipment. With a focus on apparel and industrial materials, Toray’s diversified product offerings position it well for long-term success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
