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Shin-Etsu Chemical Co Ltd Unsponsored ADR
(OTC:SHECY)
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Rating:70Outperform
Price Target:
$21.00
▲(12.54% Upside)
Action:Upgraded
Date:10/29/26
The score is driven primarily by strong financial quality—especially the conservatively financed balance sheet and solid profitability/cash generation—partly offset by margin normalization and only moderate free-cash-flow conversion. Technical indicators are largely neutral with a weak longer-term trend, and valuation is moderate given the P/E of 23.3 and ~2.0% dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage gives Shin-Etsu substantial financial resilience through industry cycles and reduces dependence on external financing. The strong equity base preserves flexibility to fund capacity, research, and strategic investment while limiting the impact of interest costs.
Negative Factors
Margin Normalization
The decline from prior peak margins indicates that earlier profitability levels may not be fully sustainable. Continued normalization would reduce earnings growth and constrain the cash available for investment, dividends, and expansion across the company’s businesses.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage gives Shin-Etsu substantial financial resilience through industry cycles and reduces dependence on external financing. The strong equity base preserves flexibility to fund capacity, research, and strategic investment while limiting the impact of interest costs.
Read all positive factors
Shin-Etsu Chemical Co Ltd Unsponsored ADR (SHECY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.15B
Dividend Yield1.95%
Average Volume (3M)16.74K
Price to Earnings (P/E)23.3
Beta (1Y)1.08
Revenue Growth-0.47%
EPS Growth-0.52%
CountryUS
Employees27,342
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)136.83
Shares Outstanding3,969,991,700
10 Day Avg. Volume0
30 Day Avg. Volume16,740
Financial Highlights & Ratios
PEG Ratio-59.50
Price to Book (P/B)2.71
Price to Sales (P/S)4.44
P/FCF Ratio31.86
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Materia...
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 m...
Shin-Etsu Chemical Co Ltd Unsponsored ADR Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74T | 2.73T | 2.56T | 2.41T | 2.81T | 2.07T |
| Gross Profit | 946.51B | 933.91B | 984.12B | 911.21B | 1.21T | 868.00B |
| EBITDA | 967.62B | 931.14B | 980.46B | 1.02T | 1.24T | 865.91B |
| Net Income | 509.11B | 503.07B | 534.02B | 520.14B | 708.24B | 500.12B |
Balance Sheet | ||||||
| Total Assets | 5.99T | 5.69T | 5.64T | 5.15T | 4.73T | 4.05T |
| Cash, Cash Equivalents and Short-Term Investments | 1.76T | 1.67T | 1.81T | 1.72T | 1.60T | 1.44T |
| Total Debt | 404.06B | 244.35B | 16.84B | 24.30B | 29.81B | 30.40B |
| Total Liabilities | 1.28T | 1.02T | 799.02B | 723.90B | 704.19B | 624.21B |
| Stockholders Equity | 4.54T | 4.48T | 4.66T | 4.26T | 3.87T | 3.33T |
Cash Flow | ||||||
| Free Cash Flow | 473.37B | 380.68B | 439.10B | 377.70B | 488.65B | 355.97B |
| Operating Cash Flow | 778.76B | 755.63B | 881.93B | 755.18B | 788.01B | 553.53B |
| Investing Cash Flow | -500.79B | -577.66B | -142.55B | -1.10T | -186.49B | -253.72B |
| Financing Cash Flow | -408.26B | -535.28B | -454.90B | -369.47B | -423.56B | -122.50B |
Shin-Etsu Chemical Co Ltd Unsponsored ADR Technical Analysis
Positive
18.66
Price Trends
18.83
Positive
19.98
Negative
20.07
Negative
Market Momentum
-0.10
Positive
51.83
Neutral
43.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHECY, the sentiment is Positive. The current price of 18.66 is below the 20-day moving average (MA) of 19.03, below the 50-day MA of 18.83, and below the 200-day MA of 20.07, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHECY.
Shin-Etsu Chemical Co Ltd Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $745.10M | 12.97 | 13.12% | 8.92% | 12.06% | 9.40% | |
70 Outperform | $75.15B | 23.31 | 11.28% | 1.95% | -0.47% | -0.52% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $24.71B | -27.09 | -4.50% | 4.20% | 4.16% | 20.86% | |
57 Neutral | $18.73B | 301.48 | 0.34% | 1.71% | -34.44% | ― | |
56 Neutral | $5.36B | -4.57 | -28.81% | 0.25% | -2.28% | 27.94% | |
42 Neutral | $509.58M | -0.50 | 46.16% | 18.42% | -1.40% | 2.39% |
* Basic Materials Sector Average
SHECY
Shin-Etsu Chemical Co Ltd Unsponsored ADR
18.97
3.81
25.16%
CE
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48.85
8.82
22.05%
BAK
Braskem SA
1.19
-1.41
-54.23%
WLKP
Westlake Chemical PRN
21.14
3.81
21.99%
DD
DuPont de Nemours
138.68
37.37
36.89%
DOW
Dow Inc
34.13
10.44
44.07%
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.