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Shin-Etsu Chemical Co Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Shin-Etsu Chemical Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

OTCPK:SHECF' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 9
Current: 6

3
9

During the past 13 years, the highest Piotroski F-Score of Shin-Etsu Chemical Co was 9. The lowest was 3. And the median was 5.


Shin-Etsu Chemical Co Piotroski F-Score Historical Data

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shin-Etsu Chemical Co Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 6.00 8.00 6.00

Shin-Etsu Chemical Co Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 6.00 3.00 3.00 4.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Shin-Etsu Chemical Co Piotroski F-Score Distribution

* The bar in red indicates where Shin-Etsu Chemical Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar20) TTM:Last Year (Mar19) TTM:
Net Income was $2,917 Mil.
Cash Flow from Operations was $3,830 Mil.
Revenue was $14,336 Mil.
Gross Profit was $5,162 Mil.
Average Total Assets from the begining of this year (Mar19)
to the end of this year (Mar20) was (27340.286456435 + 30004.328147915) / 2 = $28672.307302175 Mil.
Total Assets at the begining of this year (Mar19) was $27,340 Mil.
Long-Term Debt & Capital Lease Obligation was $140 Mil.
Total Current Assets was $16,946 Mil.
Total Current Liabilities was $3,509 Mil.
Net Income was $2,781 Mil.

Revenue was $14,342 Mil.
Gross Profit was $4,985 Mil.
Average Total Assets from the begining of last year (Mar18)
to the end of last year (Mar19) was (27375.998144216 + 27340.286456435) / 2 = $27358.142300326 Mil.
Total Assets at the begining of last year (Mar18) was $27,376 Mil.
Long-Term Debt & Capital Lease Obligation was $69 Mil.
Total Current Assets was $15,750 Mil.
Total Current Liabilities was $3,526 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Shin-Etsu Chemical Co's current Net Income (TTM) was 2,917. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Shin-Etsu Chemical Co's current Cash Flow from Operations (TTM) was 3,830. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar19)
=2916.6422860051/27340.286456435
=0.10667929

ROA (Last Year)=Net Income/Total Assets (Mar18)
=2781.2942274143/27375.998144216
=0.10159608

Shin-Etsu Chemical Co's return on assets of this year was 0.10667929. Shin-Etsu Chemical Co's return on assets of last year was 0.10159608. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Shin-Etsu Chemical Co's current Net Income (TTM) was 2,917. Shin-Etsu Chemical Co's current Cash Flow from Operations (TTM) was 3,830. ==> 3,830 > 2,917 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar19 to Mar20
=140.46976194258/28672.307302175
=0.00489914

Gearing (Last Year: Mar19)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar18 to Mar19
=68.595510521007/27358.142300326
=0.00250732

Shin-Etsu Chemical Co's gearing of this year was 0.00489914. Shin-Etsu Chemical Co's gearing of last year was 0.00250732. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar20)=Total Current Assets/Total Current Liabilities
=16945.897222276/3508.9019600194
=4.82940174

Current Ratio (Last Year: Mar19)=Total Current Assets/Total Current Liabilities
=15749.516619386/3525.6328934547
=4.46714593

Shin-Etsu Chemical Co's current ratio of this year was 4.82940174. Shin-Etsu Chemical Co's current ratio of last year was 4.46714593. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Shin-Etsu Chemical Co's number of shares in issue this year was 415.924. Shin-Etsu Chemical Co's number of shares in issue last year was 425.839. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5161.6693276417/14336.061181064
=0.36004794

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4985.0239733392/14342.040032642
=0.34758123

Shin-Etsu Chemical Co's gross margin of this year was 0.36004794. Shin-Etsu Chemical Co's gross margin of last year was 0.34758123. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar19)
=14336.061181064/27340.286456435
=0.52435666

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar18)
=14342.040032642/27375.998144216
=0.52389104

Shin-Etsu Chemical Co's asset turnover of this year was 0.52435666. Shin-Etsu Chemical Co's asset turnover of last year was 0.52389104. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Shin-Etsu Chemical Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Shin-Etsu Chemical Co  (OTCPK:SHECF) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Shin-Etsu Chemical Co Piotroski F-Score Related Terms


Shin-Etsu Chemical Co Piotroski F-Score Headlines

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