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Shin-Etsu Chemical CoSHECY +0.86%95 Return-on-Tangible-Asset is 6.47% as of Mar. 2026, which is 35% below its 10-year median of 10.00. GuruFocus rates SHECY with a GF Score™ of 95/100 and a GF Value™ of $17.91 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,612 Chemicals companies, Shin-Etsu Chemical Co ranks better than 83.56% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Shin-Etsu Chemical Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $2,272 Mil. Shin-Etsu Chemical Co's average total tangible assets for the quarter that ended in Mar. 2026 was $35,100 Mil. Therefore, Shin-Etsu Chemical Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 6.47%.
The historical rank and industry rank for Shin-Etsu Chemical Co's Return-on-Tangible-Asset or its related term are showing as below:
SHECY'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.84 Med: 10 Max: 16.16
Current: 8.73
During the past 13 years, Shin-Etsu Chemical Co's highest Return-on-Tangible-Asset was 16.16%. The lowest was 6.84%. And the median was 10.00%.
SHECY's Return-on-Tangible-Asset is ranked better than 83.56% of 1612
companies
in the Chemicals industry
Industry Median: 3.08
vs SHECY: 8.73
Shin-Etsu Chemical Co (OTCPK:SHECY) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Shin-Etsu Chemical Co Return-on-Tangible-Asset Related Terms
Shin-Etsu Chemical Co Return-on-Tangible-Asset Historical Data
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The historical data trend for Shin-Etsu Chemical Co's Return-on-Tangible-Asset can be seen below:
* 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.
Shin-Etsu Chemical Co Return-on-Tangible-Asset Chart
For the Chemicals subindustry, Shin-Etsu Chemical Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Shin-Etsu Chemical Co Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Chemical Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Chemical Co's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 6.47% mean?
Shin-Etsu Chemical Co (SHECY) has a Return-on-Tangible-Asset of 6.47% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Shin-Etsu Chemical Co and its competitors. This is 35% below median its historical median of 10.00. Over the past decade, Shin-Etsu Chemical Co's Return-on-Tangible-Asset has ranged from 6.84 to 16.16. According to the industry distribution chart, Shin-Etsu Chemical Co ranks #265 out of 1612 companies in the Chemicals industry, placing it in the top 16.4%.
Is Shin-Etsu Chemical Co's Return-on-Tangible-Asset too high?
Shin-Etsu Chemical Co's current Return-on-Tangible-Asset of 6.47% is 35% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 6.84 to a high of 16.16. The Chemicals industry median Return-on-Tangible-Asset is 3.08. Shin-Etsu Chemical Co's value of 6.47% is 110.1% above this industry median. Based on the distribution chart, Shin-Etsu Chemical Co ranks #265 out of 1612 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Shin-Etsu Chemical Co has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shin-Etsu Chemical Co's Return-on-Tangible-Asset compare to DOW?
According to the Chemicals industry distribution chart, Shin-Etsu Chemical Co ranks #265 out of 1612 companies for Return-on-Tangible-Asset. This places Shin-Etsu Chemical Co in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.08. Shin-Etsu Chemical Co's value of 6.47% is 110.1% above this benchmark. Historically, Shin-Etsu Chemical Co's own Return-on-Tangible-Asset has ranged from 6.84 to 16.16 over the past decade. While the company's 10-year median is 10.00 vs. the industry median of 3.08, Shin-Etsu Chemical Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.08, based on 1,612 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shin-Etsu Chemical Co's current Return-on-Tangible-Asset of 6.47% is 110.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Shin-Etsu Chemical Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shin-Etsu Chemical Co's current Return-on-Tangible-Asset is 6.47%, which is 35% below median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shin-Etsu Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Shin-Etsu Chemical Co (SHECY) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.91, compared to a current price of $23.40 — trading 30.7% above its estimated fair value. The current Return-on-Tangible-Asset is 6.47%, which is 35% below median its 10-year median of 10.00 and 110.1% above the Chemicals industry median of 3.08. Shin-Etsu Chemical Co's overall GF Score™ is 95/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Shin-Etsu Chemical Co (SHECY), the current Return-on-Tangible-Asset is 6.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shin-Etsu Chemical Co (SHECY) Overvalued in 2026?
Based on GuruFocus' analysis, Shin-Etsu Chemical Co stock appears to be overvalued.
The current stock price of $23.40 is trading 30.7% above its estimated GF Value™ of $17.91.
GuruFocus considers Shin-Etsu Chemical Co to be Modestly Overvalued.
Key valuation signals for SHECY:
Return-on-Tangible-Asset: 6.47% (35% below median its 10-year median of 10.00)
GF Value™: $17.91 vs. price of $23.40 (30.7% above fair value)
Industry Position: 110.1% above the Chemicals median (#265 of 1612)
No single metric tells the full story. See the SHECY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shin Etsu Chemical is an industrial conglomerate that was founded in 1926. Some of its largest product groups are silicon metal, polymer, silicone, rare-earth, and cellulose products. It holds top rankings in several markets, notably as the largest PVC and silicon wafer producer globally. Shin-Etsu is most exposed to the construction, semiconductors, and pharmaceutical sectors. Shin Etsu employed 27,342 people as of March 31, 2026, and has production bases in 17 countries.
95GF Score
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