Q1 results and expansion sharpen focus on TOYO (NasdaqCM:TOYO)

TOYO (NasdaqCM:TOYO) has drawn increased attention after Q1 2026 revenues of $142.8 million, 177% higher year on year, with net income of $28.4 million and gross margin improving to 33.5% from 9.3%.

Results were supported by higher solar cell and module volumes, capacity expansion to 4GW at its Ethiopian plant, new module production in Houston, and a continued focus on the US market alongside reaffirmed 2026 guidance.

At a share price of $14.79, TOYO has attracted fresh attention, with a 1-day share price return of 3.07%, a 90-day share price return of 94.09% and a 1-year total shareholder return of 334.68%, which signals strong recent momentum off a relatively modest three year total shareholder return of 39.27%.

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With Q1 figures sharply higher and the share price already up more than 90% over 90 days, the key question now is whether TOYO still trades below its fundamentals or if the market is already pricing in future growth.

Most Popular Narrative: 17.8% Undervalued

The most followed narrative pegs TOYO's fair value at $18, compared with the last close at $14.79, and frames that gap using a 13.76% discount rate.

Ramp up to a 4 gigawatt run rate at the Ethiopia facility by October 2025 is set to increase output from a low tariff, lower cost region. This can support higher shipment volumes and potentially lift revenue and gross profit if utilization stays high.

Want to see what sits behind that expansion story and the $18 fair value call? The narrative focuses on expectations for stronger revenue, improved margins and a lower future earnings multiple than many peers.

Result: Fair Value of $18 (UNDERVALUED)

However, this depends on tariffs and trade rules remaining supportive, as well as new Ethiopian and U.S. capacity being absorbed without putting pressure on pricing or margins.

Next Steps

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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.