Shin-Etsu Chemical Co (4063) AI Stock Analysis

• Market Cap: ¥8.73T
• Dividend Yield: 2.41%
• Average Volume (3M): 7.96M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.20
• Revenue Growth: 7.38%
• EPS Growth: 3.32%
• Country: JP
• Employees: 27,274
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 66.48
• Shares Outstanding: 1,984,995,800
• 10 Day Avg. Volume: 6,910,990
• 30 Day Avg. Volume: 7,960,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,449.59
• Price Target Upside: 23.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: ¥5,197.00 ▲(18.03% Upside)

Shin-Etsu Chemical Co's overall stock score is driven by its strong financial performance, characterized by robust profitability and a solid balance sheet. Technical analysis indicates mixed signals, with some short-term volatility. The valuation is fair, supported by a reasonable P/E ratio and a modest dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Shin-Etsu Chemical Co Business Overview & Revenue Model

Company Description

Shin-Etsu Chemical Co., Ltd. is a leading Japanese chemical company that operates across several key sectors including electronics and functional materials, infrastructure materials, and processing and specialty chemicals. The company is renowned for its production of polyvinyl chloride (PVC), silicones, and semiconductor silicon, which are essential components in a wide range of industrial and consumer products. Shin-Etsu serves a global market, leveraging its advanced technological capabilities to provide high-quality materials that support various industries such as electronics, construction, automotive, and healthcare.

How the Company Makes Money

Shin-Etsu Chemical Co. makes money primarily through the production and sale of its diverse chemical products, which serve as key materials in various industries. The company's revenue streams are largely driven by its Electronics and Functional Materials segment, which includes semiconductor silicon and rare earth magnets, crucial for the electronics and technology sectors. The Infrastructure Materials segment, particularly PVC, contributes significantly to its earnings, given its widespread application in construction and piping. Additionally, the Processing and Specialty Chemicals segment, with products like silicones, also plays a vital role in its revenue generation. Shin-Etsu's strategic partnerships and long-term relationships with major global manufacturers enhance its market position and contribute to stable revenue streams, while its focus on innovation and quality ensures sustained demand for its products.

Shin-Etsu Chemical Co Financial Statement Overview

Summary

Shin-Etsu Chemical Co demonstrates strong financial performance with consistent revenue growth, high profitability margins, and a solid balance sheet. The company has a low debt-to-equity ratio and a high equity ratio, indicating financial stability and low risk exposure. Strong cash flow generation further supports sustainability and future investment capabilities.

Income Statement

Shin-Etsu Chemical Co demonstrates strong income statement performance with consistent revenue growth and high profitability margins. From 2024 to 2025, the company achieved a revenue growth rate of 6.07%, and its net profit margin increased to 20.85%, indicating robust profitability. The EBIT margin and EBITDA margin are also strong at 28.97% and 41.56% respectively, showcasing operational efficiency and effective cost management.

Balance Sheet

The balance sheet of Shin-Etsu Chemical Co reflects a solid financial position with a low debt-to-equity ratio of 0.004 and a high equity ratio of 82.72%. The company's return on equity stands at 11.45%, highlighting effective utilization of equity to generate profits. Overall, the company's low leverage and high equity provide financial stability and reduce risk exposure.

Cash Flow

Shin-Etsu Chemical Co's cash flow performance is commendable with a free cash flow growth rate of 17.15% from 2024 to 2025. The operating cash flow to net income ratio of 1.65 indicates strong cash generation relative to earnings, and the free cash flow to net income ratio of 0.83 reinforces the company's efficient cash management. Overall, the cash flow situation supports sustainability and future investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.59T	2.56T	2.41T	2.81T	2.07T	1.50T
Gross Profit	967.36B	984.12B	911.21B	1.21T	868.00B	543.70B
EBITDA	1.01T	1.06T	1.02T	1.21T	865.91B	547.34B
Net Income	516.43B	534.02B	520.14B	708.24B	500.12B	293.73B
Balance Sheet
Total Assets	5.24T	5.64T	5.15T	4.73T	4.05T	3.38T
Cash, Cash Equivalents and Short-Term Investments	1.47T	1.81T	1.72T	1.60T	1.44T	1.15T
Total Debt	244.78B	16.84B	24.30B	29.81B	30.40B	27.75B
Total Liabilities	928.48B	799.01B	723.90B	704.19B	624.21B	493.99B
Stockholders Equity	4.15T	4.66T	4.26T	3.87T	3.33T	2.82T
Cash Flow
Free Cash Flow	421.96B	442.46B	377.70B	488.65B	355.97B	163.80B
Operating Cash Flow	817.33B	881.93B	755.18B	788.01B	553.53B	401.18B
Investing Cash Flow	-117.45B	-142.55B	-1.10T	-186.49B	-253.72B	-250.72B
Financing Cash Flow	-614.21B	-454.90B	-369.47B	-423.56B	-122.50B	-91.12B

Shin-Etsu Chemical Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4403.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4063, the sentiment is Negative. The current price of 4403 is below the 20-day moving average (MA) of 4549.45, below the 50-day MA of 4598.16, and below the 200-day MA of 4676.55, indicating a bearish trend. The MACD of -25.85 indicates Positive momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of 2.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4063.

Shin-Etsu Chemical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4063	78 Outperform	¥8.73T	16.76	12.25%	2.41%	7.38%	3.32%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
AHKSF	―	$11.09B	13.98	6.55%	3.10%	―	―
MTLHF	―	$8.31B	43.62	1.29%	4.06%	―	―
SOMMF	―	$5.08B	78.13	0.92%	2.25%	―	―
TOSCF	―	$5.04B	15.53	6.04%	2.17%	―	―
4091	73 Outperform	¥2.33T	23.72		0.89%	1.42%	-11.17%