Shin-Etsu Chemical Co (4063) AI Stock Analysis

• Market Cap: $9.48T
• Dividend Yield: 2.21%
• Average Volume (3M): 6.84M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.20
• Revenue Growth: 7.38%
• EPS Growth: 3.32%
• Country: JP
• Employees: 27,274
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 66.48
• Shares Outstanding: 1,984,995,800
• 10 Day Avg. Volume: 7,508,829
• 30 Day Avg. Volume: 6,838,533
• PEG Ratio: 4.03
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 3.28
• P/FCF Ratio: 18.97
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 8.29
• Enterprise Value/Ebitda: 7.96
• 1Y Price Target: $5,332.04
• Price Target Upside: 11.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: ¥5,056.00 ▲(5.29% Upside)

Shin-Etsu Chemical Co's strong financial performance is the most significant factor contributing to its overall stock score. The company's robust balance sheet, high profitability, and effective cash management provide a solid foundation. Technical analysis indicates neutral momentum, while valuation metrics suggest the stock is fairly priced. The absence of earnings call data and corporate events did not impact the score.

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 company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. It offers PVC- framed windows; electric, hybrid, and fuel cell vehicles; wind power generators, air conditioners, aircrafts, industrial motors, semiconductor silicon used in semiconductors for robots; and cellulose derivative products. The company also offers pipes for water supply and sewerage systems; caustic soda; polyvinyl alcohol; photoresists photomasks blanks; encapsulant materials; rare earth magnets; silicon wafers, LED packaging materials, and synthetic quartz; pellicles; SOLBIN, a copolymer resin; anode material of batteries; and input devices, wafer cases, and wrapping films. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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	33.90B	41.19B	47.09B	38.95B	34.45B
Total Liabilities	928.48B	799.01B	723.90B	704.18B	624.20B	493.99B
Stockholders Equity	4.15T	4.66T	4.26T	3.87T	3.33T	2.82T
Cash Flow
Free Cash Flow	19.70B	442.46B	380.77B	492.50B	357.75B	164.98B
Operating Cash Flow	97.40B	881.93B	755.18B	788.01B	553.53B	401.18B
Investing Cash Flow	-112.30B	-142.55B	-1.10T	-186.49B	-253.72B	-250.72B
Financing Cash Flow	-285.60B	-454.90B	-369.47B	-423.56B	-122.50B	-91.12B

Shin-Etsu Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4802.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 4802 is above the 20-day moving average (MA) of 4545.10, above the 50-day MA of 4553.68, and above the 200-day MA of 4611.72, indicating a bullish trend. The MACD of 53.84 indicates Negative momentum. The RSI at 71.92 is Negative, neither overbought nor oversold. The STOCH value of 90.89 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3407	73 Outperform	¥1.65T	13.78	7.26%	3.14%	5.91%	78.43%
4091	73 Outperform	¥2.36T	24.07	10.07%	0.88%	1.42%	-11.17%
4063	73 Outperform	$9.48T	18.20	12.25%	2.21%	7.38%	3.32%
4042	68 Neutral	¥725.36B	15.03	7.01%	4.06%	3.71%	-19.97%
4188	65 Neutral	¥1.22T	49.69	1.45%	3.63%	-6.66%	-78.39%
4005	60 Neutral	¥765.18B	78.97	4.28%	1.93%	0.98%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%