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Shin-Etsu PolymerLtd

Market Cap

JP¥88.2b

Last Updated

2021/05/11 08:11 UTC

Data Sources

Company Financials +

Executive Summary

Shin-Etsu Polymer Co., Ltd. develops and supplies polyvinyl chloride (PVC) and semiconductor silicone products worldwide. More Details

Rewards

Trading at 42.7% below our estimate of its fair value

Earnings are forecast to grow 18.2% per year

Pays a reliable dividend of 1.68%

Risk Analysis

No risks detected for 7970 from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 7970 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 7970's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

7970

4.3%

JP Chemicals

2.4%

JP Market


1 Year Return

26.5%

7970

42.9%

JP Chemicals

30.7%

JP Market

Return vs Industry: 7970 underperformed the JP Chemicals industry which returned 42.9% over the past year.

Return vs Market: 7970 underperformed the JP Market which returned 30.7% over the past year.


Shareholder returns

7970IndustryMarket
7 Day3.2%4.3%2.4%
30 Day3.8%-0.3%-0.6%
90 Day0.8%1.1%0.8%
1 Year29.2%26.5%45.8%42.9%33.5%30.7%
3 Year-0.05%-6.0%20.6%11.9%15.5%7.5%
5 Year74.4%59.6%95.1%74.5%62.6%44.7%

Long-Term Price Volatility Vs. Market

How volatile is Shin-Etsu PolymerLtd'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 PolymerLtd undervalued compared to its fair value and its price relative to the market?

42.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 7970 (¥1069) is trading below our estimate of fair value (¥1866.37)

Significantly Below Fair Value: 7970 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 7970 is poor value based on its PE Ratio (19.1x) compared to the JP Chemicals industry average (16.2x).

PE vs Market: 7970 is poor value based on its PE Ratio (19.1x) compared to the JP market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: 7970 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 7970 is overvalued based on its PB Ratio (1x) compared to the JP Chemicals industry average (0.9x).


Future Growth

How is Shin-Etsu PolymerLtd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7970's forecast earnings growth (18.2% per year) is above the savings rate (0%).

Earnings vs Market: 7970's earnings (18.2% per year) are forecast to grow faster than the JP market (15% per year).

High Growth Earnings: 7970's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7970's revenue (5.1% per year) is forecast to grow slower than the JP market (5.5% per year).

High Growth Revenue: 7970's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 7970's Return on Equity is forecast to be high in 3 years time


Past Performance

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

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7970 has high quality earnings.

Growing Profit Margin: 7970's current net profit margins (5.9%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 7970's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: 7970's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 7970 had negative earnings growth (-27.9%) over the past year, making it difficult to compare to the Chemicals industry average (-2.5%).


Return on Equity

High ROE: 7970's Return on Equity (5.2%) is considered low.


Financial Health

How is Shin-Etsu PolymerLtd's financial position?


Financial Position Analysis

Short Term Liabilities: 7970's short term assets (¥82.2B) exceed its short term liabilities (¥19.6B).

Long Term Liabilities: 7970's short term assets (¥82.2B) exceed its long term liabilities (¥1.9B).


Debt to Equity History and Analysis

Debt Level: 7970 is debt free.

Reducing Debt: 7970 had no debt 5 years ago.

Debt Coverage: 7970 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 7970 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7970's dividend (1.68%) is higher than the bottom 25% of dividend payers in the JP market (1.23%).

High Dividend: 7970's dividend (1.68%) is low compared to the top 25% of dividend payers in the JP market (2.82%).


Stability and Growth of Payments

Stable Dividend: 7970's dividends per share have been stable in the past 10 years.

Growing Dividend: 7970's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.1%), 7970'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?

3.9yrs

Average board tenure


CEO

Yoshiaki Ono

no data

Tenure

Mr. Yoshiaki Ono serves as the President and Director of Shin-Etsu Polymer Co. Ltd. and served as its Chief Operating Officer. He served as an Executive Senior Managing Director and General Manager of Sili...


Board Members

Experienced Board: 7970's board of directors are considered experienced (3.9 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 Polymer Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shin-Etsu Polymer Co.,Ltd.
  • Ticker: 7970
  • Exchange: TSE
  • Founded: 1960
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: JP¥88.176b
  • Shares outstanding: 80.90m
  • Website: https://www.shinpoly.co.jp

Number of Employees


Location

  • Shin-Etsu Polymer Co.,Ltd.
  • Sotetsu Kandasudacho Building
  • 1-9 Kanda-Sudacho
  • Tokyo
  • 101-0041
  • Japan

Listings


Biography

Shin-Etsu Polymer Co., Ltd. develops and supplies polyvinyl chloride (PVC) and semiconductor silicone products worldwide. It operates through Precision Molding Products, Electronic Devices, Housing and Liv...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 08:11
End of Day Share Price2021/05/11 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.