Shin-Etsu Chemical Co (4063) AI Stock Analysis

• Market Cap: $9.00T
• Dividend Yield: 2.29%
• Average Volume (3M): 7.87M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.18
• Revenue Growth: 7.38%
• EPS Growth: 3.32%
• Country: JP
• Employees: 27,274
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals
• EPS (TTM): 66.48
• Shares Outstanding: 1,984,995,800
• 10 Day Avg. Volume: 6,531,050
• 30 Day Avg. Volume: 7,873,420
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 3.18
• Enterprise Value/Gross Profit: 8.39
• Enterprise Value/Ebitda: 8.02
• 1Y Price Target: $5,382.92
• Price Target Upside: 16.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: ¥5,232.00 ▲(13.05% Upside)

Shin-Etsu Chemical Co's strong financial performance is the most significant factor, showcasing robust growth, profitability, and financial stability. The valuation is fair with a reasonable P/E ratio and attractive dividend yield. Technical analysis presents mixed signals, with short-term bullish momentum but potential overbought conditions. Overall, the stock is well-positioned for stability and moderate growth.

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, a robust balance sheet with low leverage, and efficient cash management. The company's financial stability and strong cash flow position it well for future growth and resilience.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.56T	2.41T	2.81T	2.07T	1.50T
Gross Profit	984.12B	911.21B	1.21T	868.00B	543.70B
EBITDA	1.06T	1.02T	1.21T	841.47B	547.34B
Net Income	534.02B	520.14B	708.24B	500.12B	293.73B
Balance Sheet
Total Assets	5.64T	5.15T	4.73T	4.05T	3.38T
Cash, Cash Equivalents and Short-Term Investments	1.81T	1.72T	1.60T	1.44T	1.15T
Total Debt	16.84B	24.30B	29.81B	30.40B	27.75B
Total Liabilities	799.01B	723.90B	704.19B	624.21B	493.99B
Stockholders Equity	4.66T	4.26T	3.87T	3.33T	2.82T
Cash Flow
Free Cash Flow	442.46B	377.70B	488.65B	355.97B	163.80B
Operating Cash Flow	881.93B	755.18B	788.01B	553.53B	401.18B
Investing Cash Flow	-142.55B	-1.10T	-186.49B	-253.72B	-250.72B
Financing Cash Flow	-454.90B	-369.47B	-423.56B	-122.50B	-91.12B

Shin-Etsu Chemical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4628.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 4628 is above the 20-day moving average (MA) of 4532.25, above the 50-day MA of 4578.42, and below the 200-day MA of 4761.36, indicating a neutral trend. The MACD of -28.73 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 91.78 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
4063	76 Outperform	$9.00T	17.28	12.25%	2.29%	7.38%	3.32%
Sector *	61 Neutral	$10.09B	5.98	1.14%	3.01%	3.01%	-45.09%
AHKSF	―	$10.34B	12.69	6.55%	3.47%	―	―
MTLHF	―	$7.61B	43.99	1.29%	4.03%	―	―
SOMMF	―	$4.41B	78.13	0.92%	2.22%	―	―
TOSCF	―	$4.97B	15.39	6.04%	4.66%	―	―
4091	77 Outperform	¥2.42T	24.70		0.86%	1.42%	-11.17%