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.

NOF Corp.

Shin-Etsu Chemical Co., Ltd.

Tosoh Corp.

Resonac Holdings Corp.

Sumitomo Chemical Co., Ltd.

Nifco, Inc.

Daicel Corp.

UBE Corp.

Mitsubishi Gas Chemical Co., Inc.

Air Water, Inc.

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

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.43%

Healthy long term growth as Net Sales has grown by an annual rate of 11.94% and Operating profit at 11.98%
Company has very low debt and has enough cash to service the debt requirements

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at JPY 745,951 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.29 times
NET SALES(Q) Highest at JPY 662,424 MM

With ROE of 12.20%, it has a fair valuation with a 3.42 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 38.31%, its profits have fallen by -10%
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 38.31% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

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.

38.31%

128.19

41.75%

Japan Nikkei 225

60.14%

2.04

29.37%

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)

0.56

Tax Ratio

28.54%

Dividend Payout Ratio

41.95%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

30.46%

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

3.42

EV to EBIT

20.65

EV to EBITDA

15.05

EV to Capital Employed

4.41

EV to Sales

5.28

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 Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 745,951 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.29 times

NET SALES(Q)

Highest at JPY 662,424 MM

OPERATING PROFIT(Q)

Highest at JPY 231,391 MM

PRE-TAX PROFIT(Q)

Highest at JPY 194,401 MM

EPS(Q)

Highest at JPY 70.24

-6What is not working for the Company

INTEREST(9M)

At JPY 1,304 MM has Grown at inf%

ROCE(HY)

Lowest at 11%

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

Operating Cash Flow

Highest at JPY 745,951 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Highest at 2.29 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 662,424 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 231,391 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 194,401 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

EPS

Highest at JPY 70.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

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)