Shin-Etsu Chemical Co., Ltd.
Shin-Etsu Chemical Co., Ltd. Fundamental Analysis
Shin-Etsu Chemical Co., Ltd. (SHECY) shows moderate financial fundamentals with a PE ratio of 28.94, profit margin of 18.43%, and ROE of 11.19%. The company generates $2610.4B 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 75.5/100 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 SHECY's fundamental strength across five key dimensions:
Efficiency Score
WeakSHECY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHECY shows balanced valuation metrics.
Growth Score
ModerateSHECY shows steady but slowing expansion.
Financial Health Score
ExcellentSHECY maintains a strong and stable balance sheet.
Profitability Score
ModerateSHECY maintains healthy but balanced margins.
Key Financial Metrics
Is SHECY Expensive or Cheap?
P/E Ratio
SHECY trades at 28.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SHECY's PEG of -0.03 indicates potential undervaluation.
Price to Book
The market values Shin-Etsu Chemical Co., Ltd. at 3.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.25 times EBITDA. This signals the market has high growth expectations.
How Well Does SHECY Make Money?
Net Profit Margin
For every $100 in sales, Shin-Etsu Chemical Co., Ltd. keeps $18.43 as profit after all expenses.
Operating Margin
Core operations generate 24.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.19 in profit for every $100 of shareholder equity.
ROA
Shin-Etsu Chemical Co., Ltd. generates $8.45 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 $724.33B, reflecting robust business health.
Free Cash Flow
Shin-Etsu Chemical Co., Ltd. generates strong free cash flow of $369.37B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $99.47 in free cash annually.
FCF Yield
SHECY converts 2.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SHECY Stacks Against Its Sector Peers
| Metric | SHECY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.94 | 24.86 | Worse (Expensive) |
| ROE | 11.19% | 943.00% | Weak |
| Net Margin | 18.43% | -105015.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 5.94 | 6.81 | Strong Liquidity |
| ROA | 8.45% | -6938.00% (disorted) | Weak |
SHECY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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