Consumer Cyclical · Textile Manufacturing · TSE · Japan
¥1183.50-0.42%
Market cap ¥1.72TNext earnings 2026-11-10Updated Oct 24, 2026 · valuation updating
Our verdict
No fair value
We are missing the financial data our models need for this company. It will appear once the data arrives.
Not valued: there are no financial statements on file yet.
ACCE opinionToray Industries, Inc. (3402.T)
Fair value
Not available
ACCE price target
¥1080
Rating
Not rated
Horizon
12 months
ACCE price target published on 22 Oct 2026, 16:00 CEST.
Price used: ¥1184 at the close on 23 Oct 2026, 08:30 CEST.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
65
out of 100
P/E
18.8x
forward 17.5x
1-year return
+21.3%
Dividend yield
1.68%
Toray Industries, Inc. in four questions
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Overview
ACCE thesis
Toray makes carbon fibre, performance films, engineering plastics and advanced composites, with a large share of its earnings coming from materials that are hard to qualify and expensive to replace, such as aerospace-grade carbon fibre and battery separator film. That qualification lock-in is the core of the moat, since customers redesign programmes around its materials and rarely switch once a part is certified. Revenue grew 14.0% over the latest period, and the forward P/E of 17.6 sits below the trailing 19.2, which implies earnings are expected to rise faster than the current multiple reflects. The weak spot is returns: a 5.6% ROE and 7.0% operating margin on a 20.5% gross margin say the growth is not yet converting into capital-efficient profit, so the thesis rests on the mix shift toward higher-value composites and films delivering margin expansion. The name merits a deeper look to test whether the 14% top-line growth is coming from those specialty lines or from lower-margin volume.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Earnings growth outpacing revenue
Earnings rose 92.5% YoY against revenue growth of 14.0%, and the 5y revenue CAGR is only 1.3%. The jump may reflect a one-off or a low base rather than sustained expansion.
moderate
Price above ACCE target
The price of ¥1183.50 sits 9.6% above the ACCE price target of ¥1080.00, so the stock already trades beyond the level our estimate supports.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-10-22 · prices to Oct 23, 2026
Why it could do well
Revenue grew 14.0% year over year, well above the 1.3% average annual growth over the past five years.
Analysts' mean price target of JPY 1435.45 sits 20.8% above the current share price of ¥1183.50.
Earnings beat expectations, with EPS of 21.47 against 16.52 expected, a 30.0% surprise.
Why it could disappoint
Net margin of 3.5% and return on equity of 5.6% are thin for the capital the business ties up.
The share price trades 9.6% above the ACCE price target of ¥1080.00, so our own valuation sees less upside.
Trailing P/E of 18.8x and forward P/E of 17.6x leave little margin for error if the 14.0% growth does not hold.
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