ScoreWhy is Shin-Etsu Chemical Co., Ltd. ?
1
High Management Efficiency with a high ROE of 14.43%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Net Sales has grown by an annual rate of 10.66% and Operating profit at 12.82%
4
Flat results in Jun 25
- ROCE(HY) Lowest at 12.01%
- DEBT-EQUITY RATIO (HY) Highest at -29.62 %
- RAW MATERIAL COST(Y) Grown by 11.73% (YoY)
5
With ROE of 12.51%, it has a very attractive valuation with a 1.93 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 -16.55%, its profits have risen by 1.9% ; the PEG ratio of the company is 5.5
- At the current price, the company has a high dividend yield of 0
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -16.55% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow 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?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Shin-Etsu Chemical Co., Ltd.
-16.55%
121.32
33.05%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.66%
EBIT Growth (5y)
12.82%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.39
Sales to Capital Employed (avg)
0.59
Tax Ratio
29.79%
Dividend Payout Ratio
39.33%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
30.93%
ROE (avg)
14.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.93
EV to EBIT
9.68
EV to EBITDA
7.33
EV to Capital Employed
2.50
EV to Sales
2.80
PEG Ratio
5.53
Dividend Yield
0.02%
ROCE (Latest)
25.88%
ROE (Latest)
12.51%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 97,400 MM
-5What is not working for the Company
ROCE(HY)
Lowest at 12.01%
DEBT-EQUITY RATIO
(HY)
Highest at -29.62 %
RAW MATERIAL COST(Y)
Grown by 11.73% (YoY
Here's what is working for Shin-Etsu Chemical Co., Ltd.
Operating Cash Flow
Highest at JPY 97,400 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Here's what is not working for Shin-Etsu Chemical Co., Ltd.
Debt-Equity Ratio
Highest at -29.62 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 11.73% (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
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