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Shin-Etsu Chemical Co
(4063)
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Rating:69Neutral
Price Target:
¥6,748.00
▲(0.69% Upside)
Action:Downgraded
Date:08/06/26
The score is driven by strong financial quality (high profitability, low leverage, and positive cash generation). However, the overall rating is held back by weak technical momentum (price below key moving averages and negative MACD) and only mid-range valuation (P/E ~22.6 with a modest ~1.83% yield).
Positive Factors
High & sustainable profitability
Shin‑Etsu’s persistently high gross and operating margins reflect durable pricing power, manufacturing scale and process efficiency. These margin levels support strong cash generation and reinvestment capacity, underpinning long‑term earnings resilience versus peers in chemicals and materials.
Negative Factors
Volatile revenue & free cash flow
Meaningful swings in free cash flow and revenue make forecasting and capital allocation harder. Variable FCF driven by capex timing or working capital can compress returns during down cycles and complicate dividend/capital return planning, reducing predictability for investors over months.
Read all positive and negative factors
Positive Factors
Negative Factors
High & sustainable profitability
Shin‑Etsu’s persistently high gross and operating margins reflect durable pricing power, manufacturing scale and process efficiency. These margin levels support strong cash generation and reinvestment capacity, underpinning long‑term earnings resilience versus peers in chemicals and materials.
Read all positive factors
Shin-Etsu Chemical Co (4063) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥11.85T
Dividend Yield1.78%
Average Volume (3M)5.66M
Price to Earnings (P/E)23.3
Beta (1Y)1.07
Revenue Growth0.62%
EPS Growth-2.72%
CountryJP
Employees27,852
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)256.62
Shares Outstanding1,984,995,800
10 Day Avg. Volume5,966,100
30 Day Avg. Volume5,664,786
Financial Highlights & Ratios
PEG Ratio-3.96
Price to Book (P/B)2.63
Price to Sales (P/S)4.57
P/FCF Ratio32.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥9,610.00Price Target Upside43.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)300.76
Revenue Forecast (FY)¥2.79T
Shin-Etsu Chemical Co Business Overview & Revenue Model
Company Description
Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. The company operates through Infrastructure Materials, Functional Materials, Electronics Materials, and Processing & Specialized Services segment...
How the Company Makes Money
Shin-Etsu Chemical makes money primarily by manufacturing and selling chemical and advanced material products to industrial and electronics customers, generating revenue from product sales across several major segments. (1) Semiconductor materials...
Shin-Etsu Chemical Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.61T | 2.57T | 2.56T | 2.41T | 2.81T | 2.07T |
| Gross Profit | 884.79B | 880.79B | 984.12B | 911.21B | 1.21T | 868.00B |
| EBITDA | 942.68B | 954.17B | 1.06T | 1.02T | 1.24T | 865.91B |
| Net Income | 478.86B | 474.46B | 534.02B | 520.14B | 708.24B | 500.12B |
Balance Sheet | ||||||
| Total Assets | 5.76T | 5.66T | 5.64T | 5.15T | 4.73T | 4.05T |
| Cash, Cash Equivalents and Short-Term Investments | 1.66T | 1.67T | 1.81T | 1.72T | 1.60T | 1.44T |
| Total Debt | 260.37B | 243.29B | 33.90B | 41.19B | 47.09B | 38.95B |
| Total Liabilities | 1.02T | 1.02T | 799.01B | 723.90B | 704.18B | 624.20B |
| Stockholders Equity | 4.56T | 4.46T | 4.66T | 4.26T | 3.87T | 3.33T |
Cash Flow | ||||||
| Free Cash Flow | 379.53B | 359.03B | 442.46B | 380.77B | 492.50B | 357.75B |
| Operating Cash Flow | 745.95B | 712.65B | 881.93B | 755.18B | 788.01B | 553.53B |
| Investing Cash Flow | -590.51B | -544.81B | -142.55B | -1.10T | -186.49B | -253.72B |
| Financing Cash Flow | -301.74B | -504.83B | -454.90B | -369.47B | -423.56B | -122.50B |
Shin-Etsu Chemical Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥11.85T | 23.25 | 10.90% | 1.58% | 0.62% | -2.72% | |
65 Neutral | ¥911.76B | 8.59 | 6.28% | 2.51% | -5.54% | 995.46% | |
64 Neutral | ¥2.22T | 11.43 | 8.13% | 2.28% | 4.03% | 61.70% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥1.54T | -37.62 | 0.66% | 2.60% | -7.96% | 106.67% | |
57 Neutral | ¥3.03T | 50.14 | 5.27% | 0.47% | 1.40% | 57.40% | |
49 Neutral | ¥293.95B | 21.64 | 5.26% | 3.71% | -2.99% | ― |
* Basic Materials Sector Average
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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.