Shin-Etsu Chemical Co (4063) AI Stock Analysis

• Market Cap: ¥10.09T
• Dividend Yield: 2.17%
• Average Volume (3M): 5.66M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.08
• Revenue Growth: 3.77%
• EPS Growth: 0.35%
• Country: JP
• Employees: 27,274
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 70.13
• Shares Outstanding: 1,984,995,800
• 10 Day Avg. Volume: 5,966,100
• 30 Day Avg. Volume: 5,664,786
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,649.25
• Price Target Upside: 25.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥5,125.00 ▲(13.89% Upside)

Shin-Etsu Chemical Co's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and a solid balance sheet. The valuation is reasonable, offering a good dividend yield. However, technical analysis presents mixed signals, with bearish momentum and oversold indicators. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion.

Profitability Margins

High profitability margins reflect operational efficiency and cost management, ensuring sustainable earnings and competitive positioning.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Market Volatility

Market volatility can affect investor confidence and stock performance, potentially impacting the company's ability to raise capital or pursue strategic initiatives.

Earnings Call Absence

The absence of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Technical Analysis Signals

Technical indicators showing oversold conditions may signal potential short-term instability, affecting investor sentiment and market perception.

Shin-Etsu Chemical Co Business Overview & Revenue Model

Company Description

Shin-Etsu Chemical Co., Ltd. is a leading global chemical manufacturer based in Japan, primarily engaged in the production of silicones, silicon wafers, and other advanced materials. Operating across various sectors, including electronics, automotive, and healthcare, the company specializes in high-performance materials that cater to diverse applications, such as semiconductor manufacturing, construction, and personal care products. With a strong commitment to innovation and sustainability, Shin-Etsu has established itself as a key player in the chemical industry, providing essential materials that drive technological advancements.

How the Company Makes Money

Shin-Etsu Chemical generates revenue through several key streams, primarily from the sale of silicones, silicon wafers, and specialty chemicals. The company’s silicone products serve a wide range of industries, including automotive, construction, and consumer goods, contributing significantly to its revenues. Additionally, its silicon wafer segment, which supports the semiconductor industry, is a critical revenue driver, as demand for electronics continues to rise. Shin-Etsu also benefits from strategic partnerships and collaborations with leading technology companies, enhancing its market position and driving innovation. Furthermore, the company focuses on research and development to create high-value products, allowing it to maintain competitive pricing and adapt to changing market needs. Overall, Shin-Etsu's diversified product offerings and strong industry relationships play a crucial role in its financial success.

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 strong cash flow generation, indicating financial stability and effective cost management.

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	2.58T	2.56T	2.41T	2.81T	2.07T	1.50T
Gross Profit	920.88B	984.12B	911.21B	1.21T	868.00B	543.70B
EBITDA	972.33B	1.06T	1.02T	1.21T	865.91B	547.34B
Net Income	497.75B	534.02B	520.14B	708.24B	500.12B	293.73B
Balance Sheet
Total Assets	5.36T	5.64T	5.15T	4.73T	4.05T	3.38T
Cash, Cash Equivalents and Short-Term Investments	1.54T	1.81T	1.72T	1.60T	1.44T	1.15T
Total Debt	243.91B	33.90B	41.19B	47.09B	38.95B	34.45B
Total Liabilities	975.29B	799.01B	723.90B	704.18B	624.20B	493.99B
Stockholders Equity	4.22T	4.66T	4.26T	3.87T	3.33T	2.82T
Cash Flow
Free Cash Flow	133.15B	442.46B	380.77B	492.50B	357.75B	164.98B
Operating Cash Flow	347.07B	881.93B	755.18B	788.01B	553.53B	401.18B
Investing Cash Flow	-300.70B	-142.55B	-1.10T	-186.49B	-253.72B	-250.72B
Financing Cash Flow	-303.32B	-454.90B	-369.47B	-423.56B	-122.50B	-91.12B

Shin-Etsu Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4500 is below the 20-day moving average (MA) of 4925.30, below the 50-day MA of 4746.10, and below the 200-day MA of 4549.57, indicating a bullish trend. The MACD of 97.16 indicates Negative momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.89 is Neutral, 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
4042	71 Outperform	¥767.68B	19.00	4.79%	4.21%	-1.21%	-27.21%
4091	70 Outperform	¥2.13T	19.93	―	1.11%	2.35%	0.43%
4063	69 Neutral	¥10.09T	19.80	10.87%	2.17%	3.77%	0.35%
3407	69 Neutral	¥1.96T	13.97	7.48%	2.89%	3.55%	95.65%
4188	68 Neutral	¥1.26T	11.55	1.09%	3.50%	-11.50%	25.86%
4005	66 Neutral	¥750.28B	8.84	8.79%	2.68%	-1.64%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%