Shin-Etsu Chemical Co Ltd (JP:4063)
:4063
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Shin-Etsu Chemical Co
(4063)
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Rating:84Outperform
Price Target:
¥7,489.00
▲(12.41% Upside)
Action:ReiteratedDate:03/13/26
The score is driven primarily by strong financial performance (high margins, very low leverage, and solid cash flow generation), supported by a favorable technical uptrend with positive momentum indicators. Valuation is reasonable but not especially cheap, and the dividend yield is modest.
Positive Factors
High Profitability Margins
Sustained high net and EBIT margins reflect durable pricing power and operational efficiency across both specialty and commodity segments. These margins provide a buffer against input-cost swings and support reinvestment, enhancing long-term cash returns and competitive resilience.
Negative Factors
EPS Contraction
A recent decline in EPS signals pressure on per-share profitability despite strong margins. Persistent EPS contraction can constrain retained earnings growth and may reflect mix shifts, cyclical demand impacts, or margin compression risks that could limit long-term capital allocation flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability Margins
Sustained high net and EBIT margins reflect durable pricing power and operational efficiency across both specialty and commodity segments. These margins provide a buffer against input-cost swings and support reinvestment, enhancing long-term cash returns and competitive resilience.
Read all positive factors
Shin-Etsu Chemical Co (4063) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.94T
Dividend Yield2.17%
Average Volume (3M)5.66M
Price to Earnings (P/E)18.0
Beta (1Y)1.01
Revenue Growth3.77%
EPS Growth0.35%
CountryJP
Employees27,274
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,984,995,800
10 Day Avg. Volume5,966,100
30 Day Avg. Volume5,664,786
Financial Highlights & Ratios
PEG Ratio4.03
Price to Book (P/B)1.80
Price to Sales (P/S)3.28
P/FCF Ratio18.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,010.19Price Target Upside-9.78% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 makes money primarily by manufacturing and selling specialty and commodity chemical products and electronic materials to industrial customers worldwide.
Key revenue streams typically include:
1) PVC / chlor-alkali-related products: Reve...
Shin-Etsu Chemical Co Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
85
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.57T | 2.56T | 2.41T | 2.81T | 2.07T | 1.50T |
| Gross Profit | 904.21B | 984.12B | 911.21B | 1.21T | 868.00B | 543.70B |
| EBITDA | 982.90B | 1.06T | 1.02T | 1.21T | 865.91B | 547.34B |
| Net Income | 485.80B | 534.02B | 520.14B | 708.24B | 500.12B | 293.73B |
Balance Sheet | ||||||
| Total Assets | 5.45T | 5.64T | 5.15T | 4.73T | 4.05T | 3.38T |
| Cash, Cash Equivalents and Short-Term Investments | 1.50T | 1.81T | 1.72T | 1.60T | 1.44T | 1.15T |
| Total Debt | 243.43B | 33.90B | 41.19B | 47.09B | 38.95B | 34.45B |
| Total Liabilities | 961.58B | 799.01B | 723.90B | 704.18B | 624.20B | 493.99B |
| Stockholders Equity | 4.32T | 4.66T | 4.26T | 3.87T | 3.33T | 2.82T |
Cash Flow | ||||||
| Free Cash Flow | 159.20B | 442.46B | 380.77B | 492.50B | 357.75B | 164.98B |
| Operating Cash Flow | 451.50B | 881.93B | 755.18B | 788.01B | 553.53B | 401.18B |
| Investing Cash Flow | -402.60B | -142.55B | -1.10T | -186.49B | -253.72B | -250.72B |
| Financing Cash Flow | -409.00B | -454.90B | -369.47B | -423.56B | -122.50B | -91.12B |
Shin-Etsu Chemical Co Technical Analysis
Positive
6662.00
Price Trends
5958.11
Positive
5436.33
Positive
5008.96
Positive
Market Momentum
162.64
Negative
62.62
Neutral
75.02
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 6662 is above the 20-day moving average (MA) of 6376.60, above the 50-day MA of 5958.11, and above the 200-day MA of 5008.96, indicating a bullish trend. The MACD of 162.64 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.02 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥12.94T | 18.04 | 11.19% | 2.17% | 3.77% | 0.35% | |
68 Neutral | ¥2.22T | 8.67 | 8.29% | 2.89% | 3.55% | 95.65% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | ¥868.83B | 3.83 | 8.79% | 2.68% | -1.64% | ― | |
60 Neutral | ¥328.42B | 36.21 | -4.00% | 3.71% | 0.24% | -234.36% | |
58 Neutral | ¥2.43T | 40.66 | 4.42% | 1.00% | -1.90% | -71.97% | |
55 Neutral | ¥1.30T | -66.09 | 1.09% | 3.50% | -11.50% | 25.86% |
* Basic Materials Sector Average
JP:4063
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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.