Shin-Etsu Polymer Co.,Ltd. Fundamental Analysis (JPX: 7970.T)
Shin-Etsu Polymer Co.,Ltd. Fundamental Analysis (JPX: 7970.T)
Shin-Etsu Polymer Co.,Ltd. (JPX: 7970.T) shows weak financial fundamentals with a PE ratio of 19.59, profit margin of 7.82%, and ROE of 7.25%. The company generates $117.7B in annual revenue with moderate year-over-year growth of 4.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 7970.T's fundamental strength across five key dimensions:
Efficiency Score
Weak7970.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent7970.T trades at attractive valuation levels.
Growth Score
Weak7970.T faces weak or negative growth trends.
Financial Health Score
Excellent7970.T maintains a strong and stable balance sheet.
Profitability Score
Weak7970.T struggles to sustain strong margins.
Key Financial Metrics
Is 7970.T Expensive or Cheap?
P/E Ratio
7970.T trades at 19.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 7970.T's PEG of -1.91 indicates potential undervaluation.
Price to Book
The market values Shin-Etsu Polymer Co.,Ltd. at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.46 times EBITDA. This signals the market has high growth expectations.
How Well Does 7970.T Make Money?
Net Profit Margin
For every $100 in sales, Shin-Etsu Polymer Co.,Ltd. keeps $7.82 as profit after all expenses.
Operating Margin
Core operations generate 12.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.25 in profit for every $100 of shareholder equity.
ROA
Shin-Etsu Polymer Co.,Ltd. generates $6.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shin-Etsu Polymer Co.,Ltd. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Shin-Etsu Polymer Co.,Ltd. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
7970.T converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How 7970.T Stacks Against Its Sector Peers
| Metric | 7970.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.59 | 27.37 | Better (Cheaper) |
| ROE | 7.25% | 1190.00% | Weak |
| Net Margin | 7.82% | 204.00% | Weak |
| Debt/Equity | 0.02 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 5.37 | 3.14 | Strong Liquidity |
| ROA | 6.00% | 2758.00% | Weak |
7970.T outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shin-Etsu Polymer Co.,Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.62%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
119.59%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
36.64%
Industry Style: Cyclical, Commodity, Value
High Growth