Toray Industries, Inc. (3402.T) stock analysis

In our weekly check, Toray Industries, Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Toray Industries, Inc.

Toray Industries, Inc. is an Industrials company (Manufacturing - Textiles) based in Japan, listed on JPX as 3402.T.

What our checks show for 3402.T

Red flags

• The net margin is only 3.5%: little room if costs rise.
• The stock has fallen as much as 67% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.6 years.

Warning signs

• The net margin fell by 0.3 points over 5 years, to 3.5%: the company keeps less of each sale as profit.
• Analysts expect only about 4.8% a year of growth in revenue.
• Revenue grew only 2.3% a year over the last 3 years.
• Free cash flow is only 3.3% of revenue.
• Return on capital (ROCE) is only 5.9%.

Strengths

• Operating cash flow is 2.31x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 15.3% a year over the next years.
• Earnings per share grew 11.6% a year over the last 3 years.
• The dividend takes 32% of profit: there is a cushion.
• A large company: market value $10.99 billion.
• Beta 0.47: the stock usually moves less than the market.

Next earnings report: 2026-11-10

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Questions

What grade does Toray Industries, Inc. (3402.T) have?

In our weekly check, Toray Industries, Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3402.T stock?

This week's biggest flags for Toray Industries, Inc.: Thin margins, Deep past fall, Slow recovery after falls. In total 8 of 25 checks show a warning or a red flag.

What does Toray Industries, Inc. do?

Toray Industries, Inc. is an Industrials company (Manufacturing - Textiles) based in Japan, listed on JPX as 3402.T.

When does Toray Industries, Inc. report earnings next?

The next earnings report is expected on 2026-11-10. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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