Operating Margin - Toray Industries Inc (OTC:TRYIY)

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Price: 13.17 USD -0.83%

Market Cap: 10.5B USD

4.5%

Current

Average

5.9%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

4.5%

Operating Profit

112.2B

Revenue

2.5T

Operating Margin Across Competitors

Country	Company	Market Cap	Operating Margin
JP	Toray Industries Inc TSE:3402	1.5T JPY	4%
SA	Saudi Basic Industries Corporation SJSC SAU:2010	228.3B SAR	2%
ID	Chandra Asri Pacific PT Tbk OTC:PTPIF	45.6B USD	4%
ID	Chandra Asri Petrochemical Tbk PT IDX:TPIA	605.5T IDR	4%
CN	Hengli Petrochemical Co Ltd SSE:600346	146B CNY	6%
KR	LG Chem Ltd KRX:051910	26.3T KRW	3%
ID	Barito Pacific Tbk PT IDX:BRPT	293.3T IDR	1%
US	Dow Inc NYSE:DOW	16.4B USD	1%
CN	Rongsheng Petrochemical Co Ltd SZSE:002493	104B CNY	3%
CN	Zhejiang Juhua Co Ltd SSE:600160	103.2B CNY	19%
TW	Nan Ya Plastics Corp TWSE:1303	460.8B TWD	1%

Toray Industries Inc
Glance View

Market Cap

10.5B USD

Industry

Chemicals

Toray Industries Inc. finds its roots in the early 20th century, having emerged as a pivotal player in the chemical industry. Originally launched in 1926 as a rayon manufacturing supplier, Toray has deftly navigated the changing tides of industrial innovation. The company's keen foresight and willingness to diversify its offerings played a significant role in its evolution. Today, Toray is celebrated for its wide-ranging influence across various sectors, including fibers and textiles, performance chemicals, carbon fiber composite materials, and now even into the realms of electronics and environmental engineering. By tapping into cutting-edge research and development, Toray continuously expands its technological horizon, creating high-performance materials that not only fuel their growth but also support the development of other industries globally. Fundamentally, Toray Industries generates its revenue through an integrated business model that harmoniously blends manufacturing competencies with strategic innovation. With an expansive portfolio, they produce everything from everyday necessities like synthetic fibers and textiles that supply the fashion industry to advanced materials pivotal in aerospace applications. The company's robust production of carbon fiber composite materials addresses the growing demand in the automotive and aviation sectors for lighter, yet stronger materials – crucial for enhancing fuel efficiency. Alongside these, their innovation in separation membranes contributes to environmental conservation by improving water treatment processes. Each of these business segments is underpinned by Toray’s focus on sustainable practices, ensuring that while they pursue growth, they remain committed to impacting the global community positively. This strategic approach fosters a steady stream of revenue while positioning Toray as a leader embracing both technological progress and environmental stewardship.

View TRYIY Analysis

TRYIY Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

K	Korea Industrial Co Ltd KRX:002140	2 520 KRW -0.4%
	Ringkjoebing Landbobank A/S LSE:0RPR	614 DKK
L	LYC Healthcare Bhd KLSE:LYC	0.155 MYR 675%

	Johnson & Johnson NYSE:JNJ	207.78 USD 0.97%
	Berkshire Hathaway Inc NYSE:BRK.A	751 245.04 USD 0.09%
	Bank of America Corp NYSE:BAC	56.25 USD 0.5%
	Mastercard Inc NYSE:MA	579.45 USD 0.54%
	UnitedHealth Group Inc NYSE:UNH	327.58 USD 0.86%
	Exxon Mobil Corp NYSE:XOM	119.22 USD -0.17%

	Franklin Covey Co NYSE:FC	16.97 USD 0.83%
	Mohawk Industries Inc NYSE:MHK	110.03 USD 1.01%
	Ardmore Shipping Corp NYSE:ASC	10.71 USD
	ASGN Inc NYSE:ASGN	49.85 USD 1.9%
	Skyworks Solutions Inc NASDAQ:SWKS	64.51 USD 0.05%
	Weatherford International PLC NASDAQ:WFRD	78.1 USD -2.17%

	Johnson & Johnson NYSE:JNJ	207.78 USD 0.97%
	Bank of America Corp NYSE:BAC	56.25 USD 0.5%
	Mastercard Inc NYSE:MA	579.45 USD 0.54%
	Salesforce Inc NYSE:CRM	265.26 USD 0.69%
	Abbvie Inc NYSE:ABBV	229.89 USD 0.48%
	Home Depot Inc NYSE:HD	347.34 USD 0.69%

Toray Industries Inc
OTC:TRYIY