Shin-Etsu Chemical Co., Ltd. (4063) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Sanso Holdings Corp.

Tosoh Corp.

Shin-Etsu Chemical Co., Ltd.

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UBE Corp.

Air Water, Inc.

Sumitomo Chemical Co., Ltd.

Mitsubishi Gas Chemical Co., Inc.

Why is Shin-Etsu Chemical Co., Ltd. ?

High Management Efficiency with a high ROE of 14.43%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 11.94% and Operating profit at 11.98%

Flat results in Mar 26

INTEREST(9M) At JPY 1,304 MM has Grown at inf%
ROCE(HY) Lowest at 10.4%
RAW MATERIAL COST(Y) Grown by 11.94% (YoY)

With ROE of 12.20%, it has a expensive valuation with a 3.08 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 49.14%, its profits have fallen by -10%
At the current price, the company has a high dividend yield of 0

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 49.14% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shin-Etsu Chemical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shin-Etsu Chemical Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Shin-Etsu Chemical Co., Ltd.

49.14%

151.68

39.51%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.94%

EBIT Growth (5y)

11.98%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.57

Tax Ratio

29.79%

Dividend Payout Ratio

39.33%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

30.93%

ROE (avg)

14.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.08

EV to EBIT

18.43

EV to EBITDA

13.43

EV to Capital Employed

3.94

EV to Sales

4.71

PEG Ratio

Dividend Yield

ROCE (Latest)

21.36%

ROE (Latest)

12.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 712,651 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 109.17%

-12What is not working for the Company

INTEREST(9M)

At JPY 1,304 MM has Grown at inf%

ROCE(HY)

Lowest at 10.4%

RAW MATERIAL COST(Y)

Grown by 11.94% (YoY

OPERATING PROFIT(Q)

Lowest at JPY 202,482 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 31.64 %

PRE-TAX PROFIT(Q)

Lowest at JPY 150,935 MM

NET PROFIT(Q)

Lowest at JPY 97,316.15 MM

EPS(Q)

Lowest at JPY 48.51

Here's what is working for Shin-Etsu Chemical Co., Ltd.

Operating Cash Flow

Highest at JPY 712,651 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Dividend Payout Ratio

Highest at 109.17% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Shin-Etsu Chemical Co., Ltd.

Interest

At JPY 1,304 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY 202,482 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 31.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 150,935 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 97,316.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 48.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 11.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales