Company DescriptionShin-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 Financial Statement Overview

Summary

Shin-Etsu Chemical Co presents a robust financial profile with stable growth, high profitability, and a strong balance sheet. The company exhibits effective cost management, low leverage, and strong cash generation, positioning it well for future expansion and resilience against market fluctuations.

Income Statement

Very Positive

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

Very Positive

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

Very Positive

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.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
2.52T	2.56T	2.41T	2.81T	2.07T	1.50T
	Gross Profit
955.91B	984.12B	911.21B	1.21T	868.00B	543.70B
	EBIT
725.95B	742.11B	701.04B	998.20B	676.32B	392.21B
	EBITDA
999.82B	1.06T	1.02T	1.21T	841.47B	547.34B
	Net Income Common Stockholders
546.15B	534.02B	520.14B	708.24B	500.12B	293.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15T	1.81T	1.72T	1.60T	1.44T	1.15T
	Total Assets
3.38T	5.64T	5.15T	4.73T	4.05T	3.38T
	Total Debt
27.75B	16.84B	24.30B	29.81B	30.40B	27.75B
	Net Debt
-839.13B	-1.69T	-1.67T	-1.42T	-1.08T	-839.13B
	Total Liabilities
493.99B	799.01B	723.90B	704.19B	624.21B	493.99B
	Stockholders Equity
2.82T	4.66T	4.26T	3.87T	3.33T	2.82T
Cash Flow		Free Cash Flow
364.07B	442.46B	377.70B	488.65B	355.97B	163.80B
	Operating Cash Flow
814.48B	881.93B	755.18B	788.01B	553.53B	401.18B
	Investing Cash Flow
-456.71B	-142.55B	-1.10T	-186.49B	-253.72B	-250.72B
	Financing Cash Flow
-349.87B	-454.90B	-369.47B	-423.56B	-122.50B	-91.12B

Shin-Etsu Chemical Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHECF		$61.51B	18.64	11.81%	2.13%	―	―
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%
AHKSF		$9.21B	10.20	7.25%	3.84%	―	―
MTLHF		$7.41B	25.25	2.49%	4.05%	―	―
SOMMF		$3.83B	17.78	3.96%	2.16%	―	―
TOSCF		$4.59B	12.10	7.04%	4.59%	―	―
4091	78 Outperform	¥2.26T	22.88		0.98%	4.22%	-6.72%

* Basic Materials Sector Average

Performance Comparison

SHECF

Shin-Etsu Chemical Co

32.96

-5.21

-13.65%

AHKSF

Asahi Kasei

6.55

0.16

2.50%

MTLHF

Mitsubishi Chemical Holdings

5.24

0.11

2.14%

SOMMF

Sumitomo Chemical Co

2.75

0.74

36.82%

TOSCF

Tosoh

14.46

1.72

13.50%

JP:4091

Nippon Sanso Holdings Corporation

5,222.00

536.71

11.46%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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