Shin-Etsu Chemical Co., Ltd.
Shin-Etsu Chemical Co., Ltd. Fundamental Analysis
Shin-Etsu Chemical Co., Ltd. (SHECF) shows moderate financial fundamentals with a PE ratio of 21.92, profit margin of 18.94%, and ROE of 14.82%. The company generates $2575.9B in annual revenue with moderate year-over-year growth of 6.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SHECF's fundamental strength across five key dimensions:
Efficiency Score
WeakSHECF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSHECF trades at attractive valuation levels.
Growth Score
ModerateSHECF shows steady but slowing expansion.
Financial Health Score
ExcellentSHECF maintains a strong and stable balance sheet.
Profitability Score
ModerateSHECF maintains healthy but balanced margins.
Key Financial Metrics
Is SHECF Expensive or Cheap?
P/E Ratio
SHECF trades at 21.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SHECF's PEG of -0.16 indicates potential undervaluation.
Price to Book
The market values Shin-Etsu Chemical Co., Ltd. at 2.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.49 times EBITDA. This signals the market has high growth expectations.
How Well Does SHECF Make Money?
Net Profit Margin
For every $100 in sales, Shin-Etsu Chemical Co., Ltd. keeps $18.94 as profit after all expenses.
Operating Margin
Core operations generate 25.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.82 in profit for every $100 of shareholder equity.
ROA
Shin-Etsu Chemical Co., Ltd. generates $8.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shin-Etsu Chemical Co., Ltd. generates strong operating cash flow of $720.30B, reflecting robust business health.
Free Cash Flow
Shin-Etsu Chemical Co., Ltd. generates strong free cash flow of $347.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $185.39 in free cash annually.
FCF Yield
SHECF converts 3.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SHECF Stacks Against Its Sector Peers
| Metric | SHECF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.92 | 27.08 | Better (Cheaper) |
| ROE | 14.82% | 958.00% | Weak |
| Net Margin | 18.94% | -16112.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 6.26 | 4.44 | Strong Liquidity |
| ROA | 8.94% | -6455.00% (disorted) | Weak |
SHECF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shin-Etsu Chemical Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.13%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
78.45%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
124.42%
Industry Style: Cyclical, Commodity, Value
High Growth