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Shin-Etsu Chemical

Market Cap

JP¥7.9t

Last Updated

2021/04/16 08:01 UTC

Data Sources

Company Financials +

Executive Summary

Shin-Etsu Chemical Co., Ltd. manufactures and sells polyvinyl chloride (PVC), semiconductor devices, silicones, and rare earth magnets worldwide. More Details

Rewards

Trading at 7.2% below our estimate of its fair value

Earnings are forecast to grow 10.76% per year

Pays a reliable dividend of 1.37%

Risk Analysis

No risks detected for 4063 from our risk checks.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Shin-Etsu Chemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4063 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 4063's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

4063

-0.6%

JP Chemicals

0.1%

JP Market


1 Year Return

59.6%

4063

49.5%

JP Chemicals

37.4%

JP Market

Return vs Industry: 4063 exceeded the JP Chemicals industry which returned 49.5% over the past year.

Return vs Market: 4063 exceeded the JP Market which returned 37.4% over the past year.


Shareholder returns

4063IndustryMarket
7 Day-3.6%-0.6%0.1%
30 Day3.6%-1.1%-1.2%
90 Day0.2%5.4%5.7%
1 Year62.0%59.6%52.6%49.5%40.3%37.4%
3 Year88.1%78.0%21.2%12.3%21.3%12.9%
5 Year227.7%201.6%87.0%66.8%57.3%40.0%

Long-Term Price Volatility Vs. Market

How volatile is Shin-Etsu Chemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shin-Etsu Chemical undervalued compared to its fair value and its price relative to the market?

7.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4063 (¥18995) is trading below our estimate of fair value (¥20465.83)

Significantly Below Fair Value: 4063 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 4063 is poor value based on its PE Ratio (28.1x) compared to the JP Chemicals industry average (16.7x).

PE vs Market: 4063 is poor value based on its PE Ratio (28.1x) compared to the JP market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4063 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 4063 is overvalued based on its PB Ratio (2.9x) compared to the JP Chemicals industry average (0.9x).


Future Growth

How is Shin-Etsu Chemical forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4063's forecast earnings growth (10.8% per year) is above the savings rate (0%).

Earnings vs Market: 4063's earnings (10.8% per year) are forecast to grow slower than the JP market (14.2% per year).

High Growth Earnings: 4063's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4063's revenue (6.2% per year) is forecast to grow faster than the JP market (5.7% per year).

High Growth Revenue: 4063's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4063's Return on Equity is forecast to be low in 3 years time (12%).


Past Performance

How has Shin-Etsu Chemical performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4063 has high quality earnings.

Growing Profit Margin: 4063's current net profit margins (19.2%) are lower than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: 4063's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 4063's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4063 had negative earnings growth (-10.6%) over the past year, making it difficult to compare to the Chemicals industry average (-3.1%).


Return on Equity

High ROE: 4063's Return on Equity (10.1%) is considered low.


Financial Health

How is Shin-Etsu Chemical's financial position?


Financial Position Analysis

Short Term Liabilities: 4063's short term assets (¥1,801.7B) exceed its short term liabilities (¥309.6B).

Long Term Liabilities: 4063's short term assets (¥1,801.7B) exceed its long term liabilities (¥129.2B).


Debt to Equity History and Analysis

Debt Level: 4063's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 4063's debt to equity ratio has increased from 0.6% to 0.9% over the past 5 years.

Debt Coverage: 4063's debt is well covered by operating cash flow (1541.9%).

Interest Coverage: 4063 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Shin-Etsu Chemical current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4063's dividend (1.37%) is higher than the bottom 25% of dividend payers in the JP market (1.21%).

High Dividend: 4063's dividend (1.37%) is low compared to the top 25% of dividend payers in the JP market (2.79%).


Stability and Growth of Payments

Stable Dividend: 4063's dividends per share have been stable in the past 10 years.

Growing Dividend: 4063's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.6%), 4063's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Yasuhiko Saitoh

4.83yrs

Tenure

JP¥147,000,000

Compensation

Mr. Yasuhiko Saitoh has been the President of Shin-Etsu Chemical Co. Ltd., since June 29, 2016. Mr. Saitoh served as an Executive Vice President and General Manager of International Division at Shin-Etsu C...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Yasuhiko's total compensation is reasonable compared to companies of similar size in the JP market.

Compensation vs Earnings: Yasuhiko's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 4063's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: 4063's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shin-Etsu Chemical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shin-Etsu Chemical Co., Ltd.
  • Ticker: 4063
  • Exchange: TSE
  • Founded: 1926
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: JP¥7.896t
  • Shares outstanding: 415.44m
  • Website: https://www.shinetsu.co.jp

Number of Employees


Location

  • Shin-Etsu Chemical Co., Ltd.
  • 6-1, Ohtemachi 2-chome
  • Chiyoda-ku
  • Tokyo
  • 100-0004
  • Japan

Listings


Biography

Shin-Etsu Chemical Co., Ltd. manufactures and sells polyvinyl chloride (PVC), semiconductor devices, silicones, and rare earth magnets worldwide. The company operates through PVC/Chlor-Alkali; Semiconducto...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 08:01
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.