Shin Etsu Chemical (4063) Earnings: FY Operating Income Misses Estimates Despite Strong Q1 Performance

Shin Etsu Chemical on Smartkarma

Independent analyst Michael Allen‘s coverage of Shin-Etsu Chemical on Smartkarma paints a cautious picture with a bearish lean. In his report titled “Shin-Etsu (4063) – Too High, Too Fast,” Allen highlights the company’s recent struggles, including its fifth consecutive earnings miss. Despite this, the stock has outperformed the Topix index by 22% over the past year. Allen suggests that consensus estimates are likely to start decreasing following Shin-Etsu’s continued underperformance.

Shin-Etsu Chemical, as discussed by Allen, faced challenges in its core Polyvinyl Chloride Resins business due to the impact of the Chinese economy. Additionally, persistent inventory issues have hindered a recovery in the semiconductor materials segment. This insightful analysis provides investors with valuable information to consider when evaluating the future prospects of Shin-Etsu Chemical in the market.

A look at Shin Etsu Chemical Smart Scores

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 Co., Ltd., a company renowned for its production of synthetic resins and various chemical products including fertilizers, is well-positioned for long-term growth based on the Smartkarma Smart Scores assessment. With an impressive score of 4 in both Growth and Resilience, Shin-Etsu Chemical demonstrates strong potential for expanding its business operations and withstanding economic challenges. Additionally, the company scores a solid 4 in Momentum, indicating positive market trends that could propel Shin-Etsu Chemical forward.

While the Value and Dividend scores are slightly lower at 2, suggesting room for improvement in these areas, the overall outlook for Shin-Etsu Chemical appears promising. Operating not only in Japan but also overseas, the company’s diverse product portfolio, including electronic materials like semiconductor silicon, positions it well for continued success in the industry.

#### Summary: Shin-Etsu Chemical Co., Ltd. produces and distributes synthetic resins and other chemical products such as fertilizers. The Company also manufactures electronic materials such as semiconductor silicon, synthetic, and rare earth quartz. Shin-Etsu Chemical operates in Japan and overseas. ####

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