Shin-Etsu Chemical Co., Ltd.: Company Profile and SWOT Analysis

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Shin-Etsu Chemical Co., Ltd.: Company Profile and SWOT Analysis
Shin-Etsu Chemical Co., Ltd.



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Shin-Etsu Chemical Co., Ltd. Financial Snapshot



Operating Performance

Fast Facts

2-6-1 Otemachi, Chiyoda-ku, 100- The company reported revenues of US$12,048.92

Headquarters Address

0004,Japan million during 2011, with a CAGR of 2.13% during

2007–2011. Its revenue grew at an annual rate of

Telephone + 81 3 32465011

15.42% over the previous fiscal year. In 2011, the

company recorded an operating margin of 12.03%, as

Fax + 81 3 32465350 against 12.63% in 2010.



Website www.shinetsu.co.jpjindex.shtml

Revenue and Margins

Ticker Symbol, Stock Exchange 4063, The Tokyo Stock Exchange



Number of Employees 16,955



Fiscal Year End March



Revenue (in US$ million) 12,048.92



Revenue (in JPY million) 1,058,257.00









SWOT Analysis Return on Equity



Strengths Weaknesses The company recorded a return on equity (ROE) of

7.00% for 2011, as compared to its peers, Asahi

Diversified Operations Declining Market Share in Sector Kasei Corporation (Ticker: 3407), DAISO CO., LTD.

(Ticker: 4046) and Sumitomo Chemical Company,

Limited (Ticker: 4005), which recorded ROEs of

Leading Market Position 9.09%, 7.22% and 4.68% respectively. The company

reported an operating margin of 12.03% in 2011.

Strong Growth Prospects

Return on Equity





Opportunities Threats

Expansion into the Chinese Silicon

Environmental Regulations

Market

Increasing Demand from

Foreign Exchange Risk

Pharmaceutical & Healthcare

Positive Growth Forecast for PVC M&A Holds Risk of Inefficient

Products Integration



Rising Semiconductor Markets







Liquidity Position



The company reported a current ratio of 3.56 in 2011,

as compared to its peers, Asahi Kasei Corporation,

DAISO CO., LTD. and Sumitomo Chemical

Company, Limited, which recorded current ratios of

1.54, 1.43 and 1.38 respectively. As of March 2011,

the company recorded cash and short-term

investments of worth US$4,106.98 million, against

US$25.33 million current debt. The company reported

a debt to equity ratio of 0.01 in 2011 as compared to

its peers, Asahi Kasei Corporation, DAISO CO., LTD.

and Sumitomo Chemical Company, Limited, which

recorded debt to equity ratios of 0.38, 0.32 and 1.99

respectively.









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Shin-Etsu Chemical Co., Ltd. - SWOT Profile Page 1

Shin-Etsu Chemical Co., Ltd.



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................7

2 Analysis of Key Performance Indicators ............................................................................................... 8

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8

2.2 Key Financial Performance Indicators .................................................................................................................11

2.2.1 Revenue and Operating Profit .........................................................................................................................11

2.2.2 Asset, Liabilities and Capex .............................................................................................................................12

2.2.3 Operational Efficiency ......................................................................................................................................13

2.2.4 Solvency ..........................................................................................................................................................14

2.2.5 Valuation ..........................................................................................................................................................15

2.3 Competitive Benchmarking ..................................................................................................................................16

2.3.1 Market Capitalization .......................................................................................................................................16

2.3.2 Efficiency ..........................................................................................................................................................17

2.3.3 Capital Expenditure ..........................................................................................................................................18

2.3.4 Valuation ..........................................................................................................................................................19

2.3.5 Turnover – Inventory and Asset .......................................................................................................................20

2.3.6 Liquidity ............................................................................................................................................................21

3 Recent Developments ..............................................................................

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