Shin-Etsu Chemical Co Ltd Unsponsored ADR (SHECY) AI Stock Analysis

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Shin-Etsu Chemical Co Ltd Unsponsored ADR

(Other OTC:SHECY)

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Rating:66Neutral

Price Target:$18.00▲(0.90% Upside)

Action:reiterated

Date:10/29/26

The overall score of 66 reflects a company with fortress-like financials and strong cash generation, offset by weak technical momentum and a fair but unexciting valuation. The balance sheet strength and free cash flow growth are the most significant positive factors, while the bearish technical trend below key moving averages and margin normalization from peak levels are the primary detractors.

Positive Factors

Conservative Balance SheetVery low leverage gives Shin-Etsu substantial financial resilience and flexibility. A strong equity base reduces dependence on borrowing, helps the company withstand cyclical demand conditions, and preserves capacity to invest in advanced materials, production, and other long-term opportunities.

Negative Factors

Margin NormalizationThe decline from prior peak net margins shows that profitability has normalized rather than continued expanding. If the lower margin structure persists, earnings growth may remain constrained even with stable sales, reducing operating leverage and limiting upside from the existing business base.

Shin-Etsu Chemical Co Ltd Unsponsored ADR (SHECY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $70.88B
Dividend Yield: 2.08%
Average Volume (3M): 485.20K
Price to Earnings (P/E): 21.0
Beta (1Y): 1.13
Revenue Growth: -0.47%
EPS Growth: -0.52%
Country: US
Employees: 27,342
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

Shin-Etsu Chemical Co Ltd Unsponsored ADR Business Overview & Revenue Model

Company Description

Shin-Etsu Chemical Co., Ltd. engages in the manufacture and sale of industrial chemicals. Its operations are carried out through the following segments: Living Environment Basic Materials Business, Electronic Materials Business, Functional Materials...

How the Company Makes Money

Shin-Etsu makes money by manufacturing and selling chemical and materials products to industrial customers worldwide, generating revenue primarily from product sales across several major business lines. A key earnings driver is its semiconductor mate...

Shin-Etsu Chemical Co Ltd Unsponsored ADR Financial Statement Overview

Summary

Shin-Etsu's financial foundation is exceptional, anchored by a nearly debt-free balance sheet (D/E 0.057) and robust cash flow generation with a 21.5% TTM free cash flow growth. Profitability remains high with a 33.9% gross margin and 18% net margin, though margins have normalized from FY2023 peaks. The primary risk is the downward trend in margins, but overall financial health is outstanding.

Income Statement

72Positive

Balance Sheet

95Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	2.59T	2.56T	2.73T	2.41T	2.81T	2.07T
Gross Profit	924.89B	984.12B	933.91B	911.21B	1.21T	868.00B
EBITDA	946.67B	980.46B	931.14B	1.02T	1.24T	865.91B
Net Income	500.04B	534.02B	503.07B	520.14B	708.24B	500.12B
Balance Sheet
Total Assets	5.36T	5.64T	5.69T	5.15T	4.73T	4.05T
Cash, Cash Equivalents and Short-Term Investments	1.54T	1.81T	1.67T	1.72T	1.60T	1.44T
Total Debt	243.91B	16.84B	244.35B	24.30B	29.81B	30.40B
Total Liabilities	975.29B	799.02B	1.02T	723.90B	704.19B	624.21B
Stockholders Equity	4.22T	4.66T	4.48T	4.26T	3.87T	3.33T
Cash Flow
Free Cash Flow	385.34B	439.10B	380.68B	377.70B	488.65B	355.97B
Operating Cash Flow	785.18B	881.93B	755.63B	755.18B	788.01B	553.53B
Investing Cash Flow	-213.94B	-142.55B	-577.66B	-1.10T	-186.49B	-253.72B
Financing Cash Flow	-526.64B	-454.90B	-535.28B	-369.47B	-423.56B	-122.50B

Shin-Etsu Chemical Co Ltd Unsponsored ADR Technical Analysis

Technical Analysis SentimentNegative

Last Price17.84

Price Trends

50DMA18.65Negative

100DMA19.47Negative

200DMA20.12Negative

Market Momentum

MACD-0.31Positive

RSI43.01Neutral

STOCH57.62Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHECY, the sentiment is Negative. The current price of 17.84 is below the 20-day moving average (MA) of 18.31, below the 50-day MA of 18.65, and below the 200-day MA of 20.12, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 57.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHECY.

Shin-Etsu Chemical Co Ltd Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SHECY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLKP	84Outperform	$764.29M	12.69	15.70%	8.89%	9.40%	20.34%
SHECY	66Neutral	$71.55B	20.99	11.28%	2.08%	-0.47%	-0.52%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CE	61Neutral	$5.63B	21.60	6.35%	0.23%	1.43%	―
DOW	60Neutral	$24.00B	-26.22	-4.50%	4.24%	4.16%	20.86%
DD	55Neutral	$20.50B	68.35	2.18%	1.56%	-43.45%	―
BAK	39Underperform	$478.11M	-0.50	46.16%	―	-1.40%	2.39%

* Basic Materials Sector Average

Performance Comparison

SHECY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SHECY	Shin-Etsu Chemical Co Ltd Unsponsored ADR	17.84	3.00	20.20%
CE	Celanese	51.41	14.57	39.54%
BAK	Braskem Sa	1.13	-1.89	-62.58%
WLKP	Westlake Chemical Partners LP	21.20	4.75	28.91%
DD	DuPont de Nemours, Inc.	153.78	39.84	34.96%
DOW	Dow Inc.	33.04	12.39	60.00%

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.

Date of analysis: Oct 29, 2026

Shin-Etsu Chemical Co Ltd Unsponsored ADR AI Stock Analysis