- Toray Industries reported a significant decline in its first quarter financial performance.
- Operating income dropped 28% year-over-year to 27.51 billion yen, missing the estimate of 34.14 billion yen.
- Net income fell 36% year-over-year to 17.15 billion yen, below the expected 21.92 billion yen.
- Net sales decreased by 6.6% year-over-year to 595.83 billion yen, missing the forecast of 647.48 billion yen.
- Fibers & Textiles revenue fell 2% year-over-year to 239.90 billion yen, against an estimate of 249.93 billion yen.
- Performance Chemicals revenue declined 9% year-over-year to 220.07 billion yen, compared to the predicted 239.94 billion yen.
- Carbon Fiber Composite Materials revenue decreased by 14% year-over-year to 66.87 billion yen, missing the target of 75.79 billion yen.
- Environment & Engineering revenue fell 7.9% year-over-year to 52.95 billion yen, below the estimate of 61.91 billion yen.
- Life Science revenue reduced by 3.4% year-over-year to 11.73 billion yen, short of the anticipated 12.38 billion yen.
- Toray maintains its first half forecast for net income at 35.00 billion yen and net sales at 1.28 trillion yen.
- The 2026 forecast remains unchanged with net income projected at 82.00 billion yen and net sales at 2.67 trillion yen.
- Dividend is still expected to be 20.00 yen per share, slightly below the estimate of 20.77 yen.
- Following the report, Toray shares fell by 2.3% to 1,030 yen, with 3.69 million shares traded.
- Analyst recommendations show 8 buys, 5 holds, and 1 sell.
“`
A look at Toray Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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
**Toray Industries Outlook:** Toray Industries Inc., a company known for manufacturing yarns, synthetic fibers, and chemical products, is revealed to have a favorable long-term outlook based on the Smartkarma Smart Scores. With a high Value score of 4, Toray is perceived as undervalued in the market, indicating potential for growth. Additionally, the company earns decent scores for Dividend and Growth at 3 each, showing stability and promising future expansion. Despite facing challenges in Resilience with a score of 2, Toray exhibits respectable Momentum with a score of 3, suggesting positive market performance in the near future.
As an industry leader in textiles and chemical products, Toray Industries is well-positioned to capitalize on its diverse product portfolio and technological expertise. While the company may need to enhance its resilience to external factors, its strong value proposition, stable dividends, and growth potential signal a promising trajectory ahead. Investors looking for a company with solid fundamentals and growth opportunities may find Toray Industries a compelling choice amidst the market landscape.
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.
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