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

• Market Cap: ¥154.61B
• Dividend Yield: 2.78%
• Average Volume (3M): 131.99K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.68
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,166.00 ▲(16.58% 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.

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

Company Description

Shin-Etsu Polymer Co., Ltd. (7970) is a leading manufacturer specializing in high-performance polymer products and materials, primarily for the electronics, automotive, and medical sectors. The company is known for its innovative solutions in the fields of silicone and other specialty polymers, offering a diverse range of products including adhesives, coatings, films, and foams. With a strong emphasis on research and development, Shin-Etsu Polymer aims to deliver advanced materials that meet the evolving needs of its customers globally.

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	16.89B	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: Neutral
• Last Price: 1858.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7970, the sentiment is Neutral. The current price of 1858 is below the 20-day moving average (MA) of 1908.00, below the 50-day MA of 1890.74, and above the 200-day MA of 1667.82, indicating a neutral trend. The MACD of -7.37 indicates Positive momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 30.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥70.48B	5.97	―	3.14%	3.55%	214.69%
4095	75 Outperform	¥159.97B	12.26	―	3.68%	5.52%	-5.40%
7970	74 Outperform	¥154.61B	14.89	―	2.78%	6.06%	19.76%
4028	74 Outperform	¥105.60B	7.58	―	4.71%	1.16%	167.89%
4369	69 Neutral	¥97.82B	17.14	―	1.21%	71.39%	87.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Shin-Etsu Polymer Co., Ltd. Corporate Events

Shin-Etsu Polymer Finalizes Stock Option Exercise Price

Shin-Etsu Polymer Co., Ltd. has finalized the exercise price for stock options allocated to its executive officers and employees. This decision, based on a board resolution from August 2025, sets the exercise price per stock acquisition right at 189,700 yen, reflecting the company’s strategic approach to employee incentives and long-term growth.

The most recent analyst rating on (JP:7970) stock is a Buy with a Yen2085.00 price target. To see the full list of analyst forecasts on Shin-Etsu Polymer Co., Ltd. stock, see the JP:7970 Stock Forecast page.

Shin-Etsu Polymer Finalizes Stock Option Exercise Price for Directors

Shin-Etsu Polymer Co., Ltd. has finalized the exercise price for stock options to be allotted to its directors, following a resolution by the Board of Directors. This decision, which includes specific financial terms for the stock acquisition rights, reflects the company’s strategic approach to incentivizing its leadership, potentially impacting its governance and stakeholder relations.

The most recent analyst rating on (JP:7970) stock is a Buy with a Yen2085.00 price target. To see the full list of analyst forecasts on Shin-Etsu Polymer Co., Ltd. stock, see the JP:7970 Stock Forecast page.

Shin-Etsu Polymer Allots Stock Options to Boost Employee Motivation

Shin-Etsu Polymer Co., Ltd. announced the allotment of stock options to its executive officers and employees, aiming to boost motivation and morale for long-term corporate value enhancement. This strategic move is expected to align the interests of the company’s workforce with its growth objectives, potentially impacting its market positioning positively.

Shin-Etsu Polymer Announces Stock Options for Directors

Shin-Etsu Polymer Co., Ltd. announced the allotment of stock options to its directors to enhance their motivation and morale, aiming to improve business performance. This move is part of the company’s strategy to align the interests of its directors with its operational goals, potentially impacting its market positioning positively.