Toray Industries, Inc. (3402) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Seiren Co., Ltd.

Transaction Co., Ltd.

Sumitomo Seika Chemicals Co., Ltd.

KURABO INDUSTRIES LTD.

Fujibo Holdings, Inc.

KOMATSU MATERE Co., Ltd.

The Japan Wool Textile Co., Ltd.

Toray Industries, Inc.

Sankyo Seiko Co., Ltd.

Nitto Boseki Co., Ltd.

Teijin Ltd.

Why is Toray Industries, Inc. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.24% and Operating profit at 1.78% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.24% and Operating profit at 1.78% over the last 5 years

With ROCE of 6.13%, it has a attractive valuation with a 0.95 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.42%, its profits have risen by 184.6% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 2.42% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Toray Industries, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Toray Industries, Inc.

2.42%

367.66

34.81%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.24%

EBIT Growth (5y)

1.78%

EBIT to Interest (avg)

9.80

Debt to EBITDA (avg)

2.90

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.96

Tax Ratio

23.68%

Dividend Payout Ratio

36.78%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

5.01%

ROE (avg)

4.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.93

EV to EBIT

15.53

EV to EBITDA

8.07

EV to Capital Employed

0.95

EV to Sales

0.85

PEG Ratio

0.10

Dividend Yield

0.05%

ROCE (Latest)

6.13%

ROE (Latest)

5.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET PROFIT(HY)

At JPY 19,885 MM has Grown at 542.07%

OPERATING CASH FLOW(Y)

Highest at JPY 247,811 MM

ROCE(HY)

Highest at 3.89%

RAW MATERIAL COST(Y)

Fallen by -2.28% (YoY

-9What is not working for the Company

INTEREST(HY)

At JPY 12,628 MM has Grown at 34.58%

NET SALES(Q)

Lowest at JPY 595,829 MM

OPERATING PROFIT(Q)

Lowest at JPY 60,842 MM

Here's what is working for Toray Industries, Inc.

Net Profit

At JPY 19,885 MM has Grown at 542.07%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (JPY MM)

Operating Cash Flow

Highest at JPY 247,811 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Raw Material Cost

Fallen by -2.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Toray Industries, Inc.

Interest

At JPY 12,628 MM has Grown at 34.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 595,829 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 595,829 MM has Fallen at -7.02%

over average net sales of the previous four periods of JPY 640,820 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 60,842 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)