Shin-Etsu Chemical CoSHECY -2.53%96 Return-on-Tangible-Equity is 8.20% as of Mar. 2026, which is 33% below its 10-year median of 12.17. GuruFocus rates SHECY with a GF Score™ of 96/100 and a GF Value™ of $17.12 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,571 Chemicals companies, Shin-Etsu Chemical Co ranks better than 71.93% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Shin-Etsu Chemical Co's annualized net income for the quarter that ended in Mar. 2026 was $2,272 Mil. Shin-Etsu Chemical Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $27,713 Mil. Therefore, Shin-Etsu Chemical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.20%.
The historical rank and industry rank for Shin-Etsu Chemical Co's Return-on-Tangible-Equity or its related term are showing as below:
SHECY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.5 Med: 12.17 Max: 19.72
Current: 10.96
During the past 13 years, Shin-Etsu Chemical Co's highest Return-on-Tangible-Equity was 19.72%. The lowest was 8.50%. And the median was 12.17%.
SHECY's Return-on-Tangible-Equity is ranked better than 71.93% of 1571
companies
in the Chemicals industry
Industry Median: 5.7
vs SHECY: 10.96
Shin-Etsu Chemical Co (OTCPK:SHECY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Shin-Etsu Chemical Co Return-on-Tangible-Equity Related Terms
Shin-Etsu Chemical Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Shin-Etsu Chemical Co's Return-on-Tangible-Equity 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-Equity Chart
SHECY vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Shin-Etsu Chemical Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Shin-Etsu Chemical Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shin-Etsu Chemical Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.20% mean?
Shin-Etsu Chemical Co (SHECY) has a Return-on-Tangible-Equity of 8.20% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Shin-Etsu Chemical Co and its competitors. This is 33% below median its historical median of 12.17. Over the past decade, Shin-Etsu Chemical Co's Return-on-Tangible-Equity has ranged from 8.50 to 19.72. According to the industry distribution chart, Shin-Etsu Chemical Co ranks #441 out of 1571 companies in the Chemicals industry, placing it in the top 28.1%.
Is Shin-Etsu Chemical Co's Return-on-Tangible-Equity too high?
Shin-Etsu Chemical Co's current Return-on-Tangible-Equity of 8.20% is 33% below median its 10-year median of 12.17. Over the past 10 years, this metric has ranged from a low of 8.50 to a high of 19.72. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Shin-Etsu Chemical Co's value of 8.20% is 43.9% above this industry median. Based on the distribution chart, Shin-Etsu Chemical Co ranks #441 out of 1571 companies in the Chemicals industry, which is above the industry midpoint. Overall, Shin-Etsu Chemical Co has a GF Score™ of 96/100 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-Equity compare to DOW?
According to the Chemicals industry distribution chart, Shin-Etsu Chemical Co ranks #441 out of 1571 companies for Return-on-Tangible-Equity. This puts Shin-Etsu Chemical Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.70. Shin-Etsu Chemical Co's value of 8.20% is 43.9% above this benchmark. Historically, Shin-Etsu Chemical Co's own Return-on-Tangible-Equity has ranged from 8.50 to 19.72 over the past decade. While the company's 10-year median is 12.17 vs. the industry median of 5.70, 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-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,571 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 8.20% is 43.9% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Shin-Etsu Chemical Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — 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-Equity is 8.20%, which is 33% below median its own 10-year median of 12.17. 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 $17.12, compared to a current price of $21.61 — trading 26.2% above its estimated fair value. The current Return-on-Tangible-Equity is 8.20%, which is 33% below median its 10-year median of 12.17 and 43.9% above the Chemicals industry median of 5.70. Shin-Etsu Chemical Co's overall GF Score™ is 96/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Shin-Etsu Chemical Co (SHECY), the current Return-on-Tangible-Equity is 8.20% 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 $21.61 is trading 26.2% above its estimated GF Value™ of $17.12.
GuruFocus considers Shin-Etsu Chemical Co to be Modestly Overvalued.
Key valuation signals for SHECY:
Return-on-Tangible-Equity: 8.20% (33% below median its 10-year median of 12.17)
GF Value™: $17.12 vs. price of $21.61 (26.2% above fair value)
Industry Position: 43.9% above the Chemicals median (#441 of 1571)
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.
96GF Score
Get the complete analysis for SHECY
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHECY has been successfully added to your 
