- Shin-Etsu Chemical’s fourth-quarter operating income was 157.67 billion yen, which was below the estimated 169.01 billion yen.
- Fourth-quarter net income fell short at 101.48 billion yen, compared to the estimated 135.73 billion yen.
- Fourth-quarter net sales were slightly higher than estimates at 631.55 billion yen, against the estimate of 619.85 billion yen.
- For the entire year, operating income was 742.11 billion yen, slightly under the estimate of 753.66 billion yen.
- Infrastructure materials operating profit was in line with expectations at 291.47 billion yen, just shy of the 291.51 billion yen estimate.
- Electronics materials operating profit was 324.76 billion yen, missing the estimate of 333.81 billion yen.
- Functional materials operating profit was 100.02 billion yen, slightly below the estimated 101.14 billion yen.
- Processing & specialized services saw an operating profit of 28.79 billion yen, exceeding the estimate of 27.09 billion yen.
- Net income for the year stood at 534.02 billion yen, falling short of the estimated 553.89 billion yen.
- Annual net sales amounted to 2.56 trillion yen, slightly missing the target of 2.57 trillion yen.
- Sales in infrastructure materials reached 1.04 trillion yen, surpassing the estimate of 999.7 billion yen.
- Sales in electronics materials were 934.31 billion yen, below the estimate of 951.41 billion yen.
- Functional materials sales totaled 448.64 billion yen, lower than the expected 458.37 billion yen.
- Sales in processing & specialized services matched expectations at 136.72 billion yen, close to the estimate of 136.62 billion yen.
- In terms of market perceptions, Shin-Etsu Chemical holds 15 buy recommendations, 7 holds, and no sell recommendations.
Shin Etsu Chemical on Smartkarma
On Smartkarma, independent analyst Travis Lundy provided coverage on Shin Etsu Chemical in a research report titled “Shin-Etsu Chemical (4063) – Small/Large Below-Market Tender Offer Buyback, Followed by Overhang“. Lundy’s analysis indicates a bullish sentiment towards Shin-Etsu Chemical, highlighting the company’s cash-rich position and its recent decision to buy back 1% of its shares in a Tender Offer Buyback. The report also mentions that Shin-Etsu is not considered expensive, and despite the buyback being relatively small, it showcases the company’s financial strength and strategic position within the tech industry.
Lundy points out that Shin-Etsu Chemical’s second buyback of approximately ¥94 billion underscores its strong financial position with substantial EBITDA. The company’s key role in the technology infrastructure, coupled with its robust balance sheet featuring significant cash reserves and securities, further supports the positive outlook. The report specifies that certain crossholders selling shares at a discount could create an overhang, but the overall sentiment remains optimistic about Shin-Etsu Chemical’s prospects moving forward.
A look at Shin Etsu Chemical Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shin-Etsu Chemical, a company known for producing synthetic resins and various chemical products, presents a mixed outlook according to the Smartkarma Smart Scores. With a Growth score of 4 and a Resilience score of 4, the company seems well-positioned for long-term success and stability. This indicates that Shin-Etsu Chemical has strong potential for expansion and can withstand market challenges effectively.
However, the company’s Momentum score of 2 suggests a relatively sluggish performance in the near term, while both the Value and Dividend scores stand at 3. Overall, Shin-Etsu Chemical appears to have solid growth prospects and resilience, making it a stable choice for investors seeking long-term opportunities in the chemical industry.
Summary: Shin-Etsu Chemical Co., Ltd. is a Japanese company primarily engaged in the production and distribution of synthetic resins, chemical products, and electronic materials. With operations in both Japan and overseas, the company plays a vital role in supplying a range of essential materials to various industries.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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