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

• Market Cap: ¥117.54B
• Dividend Yield: 3.58%
• Average Volume (3M): 142.57K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.69
• Revenue Growth: 5.94%
• EPS Growth: 9.00%
• Country: JP
• Employees: 4,457
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Chemicals - Specialty
• EPS (TTM): 34.08
• Shares Outstanding: 82,623,375
• 10 Day Avg. Volume: 152,970
• 30 Day Avg. Volume: 142,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Shin-Etsu Polymer Co., Ltd. has a strong financial foundation with robust income growth and a stable, debt-free balance sheet. However, challenges in cash flow consistency and recent bearish technical indicators pose risks. The stock's fair valuation and attractive dividend yield balance these factors, resulting in a moderate overall score.

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

Company Description

Shin-Etsu Polymer Co., Ltd. (7970) is a leading Japanese company specializing in the production and sale of a diverse range of polymer products. The company operates in sectors such as electronics, automotive, and consumer goods, offering an array of products including silicone rubber, conductive products, and precision moldings. With a strong emphasis on innovation and quality, Shin-Etsu Polymer serves a wide spectrum of industries, providing essential components that enhance the functionality and efficiency of various applications.

How the Company Makes Money

Shin-Etsu Polymer Co., Ltd. generates revenue primarily through the manufacturing and sale of polymer-based products. The company's key revenue streams include the sale of silicone rubber products, which are widely used in automotive and industrial applications for their durability and versatility. Additionally, the company produces conductive products that are essential in electronic devices, contributing significantly to its earnings. Precision moldings for consumer electronics and other sectors also form a crucial part of the company's revenue. Shin-Etsu Polymer leverages its technological expertise and strong customer relationships to maintain a steady demand for its products. Significant partnerships with major manufacturers in the automotive and electronics industries further bolster its revenue by ensuring a consistent market for its products.

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

Summary

Shin-Etsu Polymer Co., Ltd. exhibits strong financial performance with robust revenue growth, healthy profit margins, and an impressive debt-free balance sheet. However, the inconsistency in free cash flow generation presents a potential risk, indicating a need for better cash management.

Income Statement

Shin-Etsu Polymer demonstrates strong and consistent revenue growth with a noticeable increase from the previous year. The company maintains healthy profit margins with a gross profit margin of approximately 31.3% and a net profit margin of around 8.5% in the TTM period. EBIT and EBITDA margins are also solid, reflecting efficient operational management. However, the slight reduction in total revenue in the TTM compared to the previous period suggests a need for vigilance in sustaining growth.

Balance Sheet

The balance sheet is robust with a debt-free profile, showcasing excellent financial stability and risk management. The equity ratio stands at an impressive 80.2%, indicating a strong reliance on equity financing. Return on equity is healthy, highlighting effective use of shareholder capital. The absence of debt significantly reduces financial risk, positioning the company strongly for future opportunities.

Cash Flow

The cash flow statement shows erratic free cash flow figures, which might indicate challenges in cash management or capital expenditure planning. Although operating cash flow is strong, free cash flow is negative in the last reported annual period, potentially impacting liquidity. The company needs to improve its cash conversion to ensure sustainable cash flow generation, aligning better with its income statement performance.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
104.38B	108.28B	92.64B	76.90B	80.25B
	Gross Profit
31.16B	33.73B	29.14B	23.98B	25.69B
	EBIT
11.05B	12.75B	9.73B	7.22B	7.76B
	EBITDA
15.71B	16.89B	13.52B	10.73B	11.70B
	Net Income Common Stockholders
8.67B	8.53B	6.31B	4.54B	6.29B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.45B	46.90B	48.75B	47.62B	42.51B
	Total Assets
140.78B	135.36B	122.58B	108.21B	105.38B
	Total Debt
0.00	490.00M	0.00	0.00	0.00
	Net Debt
-42.45B	-46.41B	-48.75B	-47.62B	-42.51B
	Total Liabilities
27.81B	30.24B	28.24B	21.54B	20.84B
	Stockholders Equity
112.97B	105.13B	94.33B	86.68B	84.54B
Cash Flow		Free Cash Flow
-2.96B	-1.81B	5.19B	7.86B	2.73B
	Operating Cash Flow
11.97B	9.12B	9.76B	10.64B	7.69B
	Investing Cash Flow
-12.31B	-11.20B	-9.66B	-3.74B	-4.63B
	Financing Cash Flow
-4.15B	-2.50B	-2.36B	-1.69B	-1.81B

Shin-Etsu Polymer Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1452.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1452 is above the 20-day moving average (MA) of 1389.70, below the 50-day MA of 1481.35, and below the 200-day MA of 1523.25, indicating a neutral trend. The MACD of -3.86 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.83 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
4204	77 Outperform	¥1.03T	12.49	10.10%	3.13%	3.28%	6.56%
7970	73 Outperform	¥117.54B	12.41		3.58%	5.94%	9.00%
4205	72 Outperform	$275.53B	10.97	7.16%	4.75%	10.04%	-13.43%
4188	67 Neutral	$1.00T	13.35	4.16%	5.04%	<0.01%	-58.95%
4183	64 Neutral	$602.92B	11.93	5.83%	4.49%	5.15%	-8.48%
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.88%	-29.24%
4208	45 Neutral	¥202.64B	11.14	-2.54%	5.02%	7.76%	-171.50%