Shin-Etsu Chemical Co Ltd (JP:4063)
:4063
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Shin-Etsu Chemical Co
(4063)
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Rating:83Outperform
Price Target:
¥8,249.00
▲(19.43% Upside)
Action:ReiteratedDate:04/30/26
The score is driven primarily by strong financial performance (high margins, very conservative balance sheet, and solid cash generation). Technicals add support via a clear uptrend, though momentum indicators suggest the stock is getting stretched. Valuation is reasonable but not particularly cheap, and the dividend yield is modest.
Positive Factors
High and consistent margins
Sustained high gross and operating margins indicate durable pricing power and operational efficiency across commodity and specialty businesses. Over 2–6 months this supports resilient cash generation, ability to fund capex/specialty R&D, and protection versus cyclical revenue swings, bolstering long‑term returns.
Negative Factors
Volatile revenue and profits
Pronounced swings in revenue and a recent profit step‑down despite higher top‑line point to sensitivity in product mix, margin dilution, or cost pressure. Such earnings volatility challenges planning, makes cash flow less predictable, and increases execution risk for long‑term investments and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High and consistent margins
Sustained high gross and operating margins indicate durable pricing power and operational efficiency across commodity and specialty businesses. Over 2–6 months this supports resilient cash generation, ability to fund capex/specialty R&D, and protection versus cyclical revenue swings, bolstering long‑term returns.
Read all positive factors
Shin-Etsu Chemical Co (4063) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.02T
Dividend Yield2.17%
Average Volume (3M)5.66M
Price to Earnings (P/E)24.8
Beta (1Y)1.01
Revenue Growth0.50%
EPS Growth-6.23%
CountryJP
Employees27,274
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)252.70
Shares Outstanding1,984,995,800
10 Day Avg. Volume5,966,100
30 Day Avg. Volume5,664,786
Financial Highlights & Ratios
PEG Ratio-3.96
Price to Book (P/B)2.63
Price to Sales (P/S)4.57
P/FCF Ratio32.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)298.79
Revenue Forecast (FY)¥2.77T
Shin-Etsu Chemical Co Business Overview & Revenue Model
Company Description
Shin-Etsu Chemical Co., Ltd. engages in the polyvinyl chloride (PVC)/chlor-alkali, semiconductor silicon, silicones, electronics and functional materials, specialty chemicals, processing, and trading and specialized businesses worldwide. The compa...
How the Company Makes Money
Shin-Etsu primarily makes money by manufacturing and selling high-volume commodity chemicals and higher-margin specialty materials to industrial customers worldwide. Key revenue streams include: (1) PVC and chlor-alkali: sales of PVC resin and ass...
Shin-Etsu Chemical Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.57T | 2.56T | 2.41T | 2.81T | 2.07T |
| Gross Profit | 880.79B | 984.12B | 911.21B | 1.21T | 868.00B |
| EBITDA | 878.18B | 1.06T | 1.02T | 1.21T | 865.91B |
| Net Income | 474.46B | 534.02B | 520.14B | 708.24B | 500.12B |
Balance Sheet | |||||
| Total Assets | 5.66T | 5.64T | 5.15T | 4.73T | 4.05T |
| Cash, Cash Equivalents and Short-Term Investments | 1.67T | 1.81T | 1.72T | 1.60T | 1.44T |
| Total Debt | 243.29B | 33.90B | 41.19B | 47.09B | 38.95B |
| Total Liabilities | 1.02T | 799.01B | 723.90B | 704.18B | 624.20B |
| Stockholders Equity | 4.46T | 4.66T | 4.26T | 3.87T | 3.33T |
Cash Flow | |||||
| Free Cash Flow | 359.03B | 442.46B | 380.77B | 492.50B | 357.75B |
| Operating Cash Flow | 712.65B | 881.93B | 755.18B | 788.01B | 553.53B |
| Investing Cash Flow | -544.81B | -142.55B | -1.10T | -186.49B | -253.72B |
| Financing Cash Flow | -504.83B | -454.90B | -369.47B | -423.56B | -122.50B |
Shin-Etsu Chemical Co Technical Analysis
Positive
6907.00
Price Trends
6102.09
Positive
5527.19
Positive
5058.67
Positive
Market Momentum
206.20
Negative
68.32
Neutral
89.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4063, the sentiment is Positive. The current price of 6907 is above the 20-day moving average (MA) of 6452.33, above the 50-day MA of 6102.09, and above the 200-day MA of 5058.67, indicating a bullish trend. The MACD of 206.20 indicates Negative momentum. The RSI at 68.32 is Neutral, neither overbought nor oversold. The STOCH value of 89.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4063.
Shin-Etsu Chemical Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥14.02T | 24.77 | 11.19% | 2.17% | 0.50% | -6.23% | |
68 Neutral | ¥2.07T | 8.67 | 8.29% | 2.89% | 1.99% | 91.37% | |
68 Neutral | ¥2.54T | 12.83 | 4.42% | 1.00% | -3.03% | -47.62% | |
66 Neutral | ¥359.61B | 36.21 | -4.00% | 3.71% | -2.16% | -185.38% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥839.85B | 3.83 | 8.79% | 2.68% | -5.39% | ― | |
55 Neutral | ¥1.19T | -66.09 | 1.09% | 3.50% | -14.76% | 25.27% |
* Basic Materials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.