Financial Analysis: Shin-Etsu Chemical (SHECY) versus The Competition

Dividends

Shin-Etsu Chemical pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Shin-Etsu Chemical pays out 13.6% of its earnings in the form of a dividend. As a group, “CHEM – DIVERSIFD” companies pay a dividend yield of 3.2% and pay out 101.1% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shin-Etsu Chemical	20.84%	11.14%	9.64%
Shin-Etsu Chemical Competitors	-39.80%	2.88%	0.68%

Volatility & Risk

Shin-Etsu Chemical has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Shin-Etsu Chemical’s rivals have a beta of 0.94, indicating that their average share price is 6% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Shin-Etsu Chemical shares are owned by institutional investors. Comparatively, 62.5% of shares of all “CHEM – DIVERSIFD” companies are owned by institutional investors. 4.5% of shares of all “CHEM – DIVERSIFD” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Shin-Etsu Chemical and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Shin-Etsu Chemical	$16.82 billion	$3.52 billion	17.73
Shin-Etsu Chemical Competitors	$10.58 billion	$484.74 million	6.89

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

Summary

Shin-Etsu Chemical beats its rivals on 8 of the 11 factors compared.

About Shin-Etsu Chemical

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.