Shin-Etsu Polymer Co., Ltd. (7970) AI Stock Analysis

• Market Cap: ¥170.72B
• Dividend Yield: 2.84%
• Average Volume (3M): 131.99K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.70
• Revenue Growth: 6.06%
• EPS Growth: 19.76%
• Country: JP
• Employees: 4,457
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 29.47
• Shares Outstanding: 82,623,375
• 10 Day Avg. Volume: 109,000
• 30 Day Avg. Volume: 131,986
• PEG Ratio: 1.42
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 22.68
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,166.00 ▲(5.81% Upside)

Shin-Etsu Polymer Co., Ltd. demonstrates strong financial performance with robust profitability and a solid balance sheet, which are the most significant factors contributing to the score. Technical analysis supports a positive trend, although not overly strong. The valuation is fair, with a reasonable P/E ratio and an attractive dividend yield. The absence of debt enhances the company's financial stability and growth potential.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet minimizes financial risk and enhances growth potential, providing flexibility for strategic investments.

Revenue Growth

Consistent revenue growth reflects robust demand and a strong market position, supporting long-term business expansion.

Profitability Margins

Strong profitability margins indicate effective cost management and pricing power, contributing to sustainable earnings.

Negative Factors

Free Cash Flow Fluctuations

Fluctuating free cash flow can limit financial flexibility, potentially impacting the ability to fund growth initiatives consistently.

Free Cash Flow Efficiency

Inefficient free cash flow generation may hinder reinvestment capabilities, affecting long-term growth and shareholder returns.

Return on Equity

Suboptimal return on equity suggests potential inefficiencies in using shareholder funds, which could impact investor confidence.

Shin-Etsu Polymer Co., Ltd. Business Overview & Revenue Model

Company Description

Shin-Etsu Polymer Co.,Ltd. manufactures and sells polyvinyl chloride (PVC) products worldwide. The company operates through Precision Molding Products, Electronic Devices, Housing and Living Materials, and Others segments. It offers touch switches and pads, rubber contacts, short strokes, metal domes, in-molds, pressure sensitive devices, view/light path control films, and anisotropic conductive rubber connectors; and silicone rubber tubes and sheets, silicone sponge sheets, medical tube transitions, office automation rollers, medical and chemical products, culture plugs, embossed carrier tapes, top cover tapes, wafer cases, and light frames. The company also provides PVC pipes and corrugated sheets, sealing materials, wrap films, material for infrastructure maintenance, low friction PVC and TPV compounds, thermoplastic urethane compounds, polythiophene base conductive polymers, and engineering plastic films; and silicone adhesive sheets. It serves automotive, semiconductors and electronic components, information devices, medical and chemical products, packaging, and construction and infrastructure maintenance markets. The company was founded in 1960 and is headquartered in Tokyo, Japan. Shin-Etsu Polymer Co., Ltd. is a subsidiary of Shin-Etsu Chemical Co., Ltd.

How the Company Makes Money

Shin-Etsu Polymer generates revenue primarily through the sale of its polymer-based products across various industries. The company's key revenue streams include the production and sale of silicone materials used in electronics, automotive components, and medical devices. Additionally, the company benefits from long-term contracts and partnerships with major manufacturers in these sectors, which provide a stable income source. Their focus on innovation and customization allows them to command premium pricing for specialized products, while ongoing investments in R&D help maintain a competitive edge in the market. This combination of diversified product offerings and strategic partnerships contributes significantly to the company's overall earnings.

Shin-Etsu Polymer Co., Ltd. Financial Statement Overview

Summary

Shin-Etsu Polymer Co., Ltd. displays strong financial health with robust profitability and a solid balance sheet. The company effectively manages its operations with consistent revenue growth and profitability margins. While cash flow management shows positive trends, further improvements in free cash flow generation could enhance financial flexibility. The absence of debt positions the company well for future growth opportunities.

Income Statement

Shin-Etsu Polymer Co., Ltd. demonstrates strong profitability with a consistent gross profit margin above 30% and improving EBIT and EBITDA margins over the years. The net profit margin has also shown a positive trend, indicating effective cost management. Revenue growth has been positive, with a notable increase in the latest year, reflecting robust demand and market position.

Balance Sheet

The company maintains a solid balance sheet with no debt, resulting in a debt-to-equity ratio of zero, which minimizes financial risk. The return on equity is stable, reflecting efficient use of shareholder funds, though slightly below industry-leading levels. The equity ratio is strong, indicating a healthy capital structure.

Cash Flow

Operating cash flow has been consistently positive, supporting the company's operations and investments. However, free cash flow has fluctuated, with recent improvements. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio indicates room for improvement in cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.93B	110.58B	104.38B	108.28B	92.64B	76.90B
Gross Profit	34.47B	33.94B	31.16B	33.73B	29.14B	23.98B
EBITDA	19.30B	19.03B	15.71B	15.55B	13.23B	9.94B
Net Income	10.27B	9.43B	8.67B	8.53B	6.31B	4.54B
Balance Sheet
Total Assets	145.76B	152.99B	140.78B	135.36B	122.58B	108.21B
Cash, Cash Equivalents and Short-Term Investments	41.42B	44.90B	42.45B	46.90B	48.75B	47.62B
Total Debt	1.95B	755.00M	421.00M	490.00M	0.00	0.00
Total Liabilities	24.28B	29.83B	27.81B	30.24B	28.24B	21.54B
Stockholders Equity	121.48B	123.15B	112.97B	105.13B	94.33B	86.68B
Cash Flow
Free Cash Flow	0.00	5.33B	-2.96B	-1.81B	5.19B	7.86B
Operating Cash Flow	0.00	16.01B	11.97B	9.12B	9.76B	10.64B
Investing Cash Flow	0.00	-10.98B	-12.31B	-11.20B	-9.66B	-3.74B
Financing Cash Flow	0.00	-4.90B	-4.15B	-2.50B	-2.36B	-1.69B

Shin-Etsu Polymer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2047.00
• 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:7970, the sentiment is Positive. The current price of 2047 is above the 20-day moving average (MA) of 2033.60, above the 50-day MA of 1963.18, and above the 200-day MA of 1769.33, indicating a bullish trend. The MACD of 41.34 indicates Negative momentum. The RSI at 74.59 is Negative, neither overbought nor oversold. The STOCH value of 94.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7970.

Shin-Etsu Polymer Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4116	76 Outperform	¥80.19B	12.68	―	3.04%	1.57%	-33.97%
4095	75 Outperform	¥175.49B	13.26	―	3.50%	3.85%	-1.53%
7970	74 Outperform	¥170.72B	16.44	―	2.84%	6.06%	19.76%
4028	74 Outperform	¥116.27B	8.35	―	4.15%	1.16%	167.89%
4369	72 Outperform	¥102.04B	17.72	―	1.30%	47.56%	49.58%
4099	71 Outperform	¥126.98B	15.53	―	1.81%	-0.52%	5.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%