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

• Market Cap: ¥163.59B
• Dividend Yield: 2.84%
• Average Volume (3M): 131.99K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.74
• Revenue Growth: 6.06%
• EPS Growth: 19.76%
• Country: JP
• Employees: 4,457
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• 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: ¥2,383.00 ▲(16.41% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Debt-free balance sheet

A zero-debt capital structure materially reduces financial risk and interest expense, giving durable flexibility for capex, R&D, and M&A. Over 2–6 months this strengthens resilience to downturns, preserves liquidity for strategic investments, and supports consistent dividend or share-return policies.

Strong and improving profitability margins

High and improving gross and operating margins indicate structural pricing power and cost control in differentiated polymer products. Durable margin strength supports reinvestment, withstands raw-material swings, and creates a buffer to sustain profitability across business cycles and fund long-term product development.

Consistent operating cash flow

Persistent positive operating cash flow demonstrates the business converts earnings into real cash, enabling ongoing capex, maintenance of facilities, and distribution to shareholders. Over months this underpins financial flexibility and reduces dependency on external financing for growth initiatives.

Negative Factors

Fluctuating free cash flow

Volatility in free cash flow limits predictable capital allocation for buybacks, dividends, and strategic projects. Over the medium term this can constrain growth financing or force opportunistic asset sales, reducing the firm’s ability to consistently deploy cash for long-term value creation.

ROE below industry leaders

A stable but sub-leading ROE suggests the company is less efficient at converting equity into returns versus top peers. Structurally, this may signal slower capital turnover or margin ceilings, limiting long-term shareholder return potential and competitive positioning against best-in-class rivals.

Exposure to cyclical end-markets

End-market cyclicality in electronics and autos implies structural demand swings tied to investment and consumer cycles. Over a 2–6 month horizon this can translate into revenue and utilization variability, complicating capacity planning and pressuring margins during industry downturns.

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

null

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	19.99B	19.06B	15.71B	16.89B	13.52B	10.73B
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	133.00M	219.00M	0.00	0.00
Total Liabilities	24.28B	29.83B	27.81B	30.23B	28.24B	21.53B
Stockholders Equity	121.48B	123.15B	112.97B	105.13B	94.34B	86.68B
Cash Flow
Free Cash Flow	0.00	5.33B	-2.60B	-1.28B	5.60B	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: Negative
• Last Price: 2047.00
• 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 Negative. The current price of 2047 is below the 20-day moving average (MA) of 2117.45, below the 50-day MA of 2096.50, and above the 200-day MA of 1907.62, indicating a neutral trend. The MACD of -10.88 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 56.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4202	80 Outperform	¥359.37B	5.46	9.34%	4.27%	-0.48%	-35.29%
4205	79 Outperform	¥346.79B	14.16	9.59%	3.91%	0.87%	16.71%
4203	76 Outperform	¥446.33B	17.67	6.52%	1.82%	3.25%	-11.31%
7970	74 Outperform	¥163.59B	14.73	―	2.84%	6.06%	19.76%
4118	74 Outperform	¥301.27B	9.05	5.47%	3.41%	2.60%	9.50%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4183	61 Neutral	¥754.98B	12.79	2.01%	3.82%	-4.63%	-65.11%