Critical Analysis: Shin-Etsu Chemical (SHECY) versus Its Rivals

Shin-Etsu Chemical (OTCMKTS:SHECY – Get Free Report) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Shin-Etsu Chemical to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.

Profitability

This table compares Shin-Etsu Chemical and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shin-Etsu Chemical 18.57% 10.90% 8.97%
Shin-Etsu Chemical Competitors -61.48% 1.14% -1.43%

Volatility & Risk

Shin-Etsu Chemical has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Shin-Etsu Chemical’s competitors have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Shin-Etsu Chemical shares are held by institutional investors. Comparatively, 47.5% of shares of all “Chemicals” companies are held by institutional investors. 13.9% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Shin-Etsu Chemical and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Shin-Etsu Chemical $17.10 billion $3.15 billion 21.71
Shin-Etsu Chemical Competitors $6.37 billion $222.31 million -3.77

Shin-Etsu Chemical has higher revenue and earnings than its competitors. Shin-Etsu Chemical is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Shin-Etsu Chemical and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shin-Etsu Chemical 0 1 0 0 2.00
Shin-Etsu Chemical Competitors 3234 12161 14087 515 2.40

As a group, “Chemicals” companies have a potential upside of 7.10%. Given Shin-Etsu Chemical’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Shin-Etsu Chemical has less favorable growth aspects than its competitors.

Dividends

Shin-Etsu Chemical pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. Shin-Etsu Chemical pays out 23.3% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 109.5% of their earnings in the form of a dividend.

Summary

Shin-Etsu Chemical beats its competitors on 8 of the 15 factors compared.

Shin-Etsu Chemical Company Profile

(Get Free Report)

Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It is also involved in processing and specialized related services. The company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. In addition, it offers cellulose derivatives, synthetic pheromones, aroma chemicals, dielectric and LED/ semiconductor materials, silanes, photoresists, chlorides, caustic soda, liquid fluoroelastomers, polyvinyl chloride and vinyl acetate resin, silicones, and silicones processed goods. Further, the company offers pellicles, photomask blanks, synthetic quartz/ quartz cloth, pyrolytic boron nitride, LIB anode material, and silicon metal. Additionally, it provides rare earth magnets, compound semiconductors, and oxide single crystals. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.

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